For some time now, weekends spell a period of trepidation for investors as the Pandora’s box is opened. Bizarre announcements of historical takeovers, bankruptcies and government interventions left investors grabbing for straws in a cesspool when trading resumed on Mondays.

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Since Monday, the “Paulson Plan” has been thrust into intense debates at Senate hearings as Democrats and Republicans unite in their dislike of this mind-numbing $700 billion bailout of the nation’s financial system. I find such actions amusing, if not hypocritical.

In the past week, we have venerable investment banks Lehman Brothers folding and Merrill Lynch merging with Bank of America, leaving Goldman Sachs and Morgan Stanley as the remaining bastions of independents on Wall Street.
Next, the Federal Reserve announced a $85 billion loan to insurance giant, AIG, allowing them breathing space to liquidate assets in […]

After the US government put out a forest fire with the takeover of Freddie Mac and Fannie Mae last week, Wall Street’s troubles were far from over. As they say, when you see a rat in the house, you can bet there are hundred more rats lurking in the dark corners. Slowly but surely, they […]

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Uncontrolled Risk
ARE WE HEADED FOR ANOTHER LEHMAN?
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On Monday, we had a fantastic stock market rally after the US Treasury engineered a takeover of troubled mortgage giants Fannie Mae and Freddie Mac. Regardless of it being the costliest bailout in US financial history, investors’ confidence were restored… for a while.
Suckers, er, investors rushed into the stock market again, picking up oversold stocks as […]

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