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Your Take: What The Heck Happened These Last Two Weeks!?!?!?!

Posted By Jim On 09/26/2008 @ 6:02 am In Your Take | 10 Comments

Last week, the stock indices had both their single greatest losses and single greatest gains in the last six years. Despite all the insanity, the market as a whole lost little from Friday the 12th to Friday the 19th. We were short a few companies as Lehman collapsed and 80% of AIG went to the Feds but despite all that turmoil, the various market indices were OK. We also lost the last of the investment firms as Goldman Sachs and Morgan Stanley became bank holding companies. Oh, and did you hear? JP Morgan Chase is picking up a few pieces of WaMu [3] yesterday.

A heck of a week huh?

What I’d like to know is what do you think about the last two weeks, what do you think about this $700B bailout bill [4] (yeah, the one where one second there’s agreement and the next there isn’t?) and what have you been doing with your finances as a result of all this craziness?

Me? I haven’t touched a thing, fortunately I’m far enough away from retirement that I believe we can weather it. I don’t think we’re going into a Great Depression or anything like that (the central bank understands monetary policy and economics well enough to prevent that) but I wouldn’t be surprised if things were slow for a few years as a result.

As for that bailout bill? I only have eight classes of economics (that’s all I needed for that Econ double major, w00t w00t) and I am wholly unqualified to either justify or tear down the bailout bill. I understand the reasoning behind it but I don’t know if we’re going down the right path or whether we’re just signing yet another IOU. All I know is that the provision to snip the golden parachutes of executives at bail out firms better make it into the final draft. TGIF.

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[2] Email: mailto:?subject=http://www.bargaineering.com/articles/your-take-what-the-heck-happened-these-last-two-weeks.html

[3] JP Morgan Chase is picking up a few pieces of WaMu: http://www.bargaineering.com/articles/washington-mutual-acquired-by-jp-morgan-chase.html

[4] $700B bailout bill: http://www.bargaineering.com/articles/bailout-bill-700billion.html

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