The American govt plans on buying stakes in banks and has put the proposed bailout plan on the back burner for now. Bush met with the finance ministers of the G7 nations. They are pushing for a global response to the crisis by the G7. The fact that the govt is thinking about nationalizing banks is almost antithetical to what the free market economy stands for.
GM is pondering a merger with either Ford or Chrysler. I don’t have a car and I don’t plan on buying one for the next few years. I will most definitely not buy a new car in the next ten years. What I will buy is bicycles and more than one, but that’s just me.
This article suggests that it’s time to buy stocks. The stocks haven’t yet hit rock bottom, so it’s not the actual time yet. But it’s coming. The trick is to distinguish between the companies that are going to go bankrupt and the ones which will survive healthily, unless you are short-selling of course. Still, you’d better hedge your bets by doing both.
Goldman Sachs doesn’t like Professor Roubini, who predicted their downfall and any other investment type bank on Wall Street back in February due to their business model which relied on short-term leverages.
Economic uncertainty continues to spread worldwide. The global recession is almost unavoidable. Morgan Stanley’s stock is down 82% this year.
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