IS YOUR MONEY RAINING DOWN OR IS IT FLYING AWAY?
We don't want to paint a doom and gloom picture of the American economy. So look at the following story as information for all of us to diversify where our money is. (don't put it all in one place) We need to curb our spending and set up an emergency account in case something should happen and cash is the only thing that will be accepted to get us out of that jam. Here is what is going on with the "Big Boys" on Wall Street. U.S. stocks plunged Friday after Bear Stearns Cos. had to be bailed out by the Federal Reserve, shocking Wall Street and ending a week that saw one of the best trading days in five years wiped out by the biggest scare yet in the ongoing credit crisis."
People realized that Bear Stearns just came out the other day saying everything was fine, said Paul Nolte, director of investments at Hinsdale Associates. "So, two days later, why would they need this funding from the Fed and J.P. Morgan? If it's like that for them, what is it like for Merrill Lynch or for Thornburg Mortgage?"
Where are we headed with one of the titans of Wall Street, Bear Stearns, needing a hand out? Kate Gibson at MarketWatch has got the rest of the outlook.