The business glamour exuded by Wall Street met its demise when one old bank after another collapsed because of bad real estate bets. The debts they owned outnumbered their assets, and that's a recipe for exactly what happened: disaster. Bear Stearns was bailed out back in March, months before the other big banks could no longer fend off failure.
Lehman Brothers went bankrupt after it wasn't granted a government bailout and other banks didn't want to buy the investment bank's risky debts. Then, in a surprising move, Bank of America bought Merrill Lynch as it was thought to be the next bank to go down. When the last standing independent investment banks on Wall Street, Goldman Sachs and Morgan Stanley, were converted to traditional banks, it was the end of an era.
The shape of banking in America is forever changed, and the drama on Wall Street makes it one of the biggest headlines of 2008. We'll be revisiting more of the shocking news from the past year throughout the month of December, so be sure to look for more headlines!
Hudson
Judith Leiber
theOutnet
What I don't like about Wall Street as we know it, are these analysts. They are given soooo much credit, and everyone will jump on whatever it is they say. Many times they state the obvious, sometimes may obviously be wrong, or don't fully understand their respective industries to make a qualified call. And then they resort to the good ol' call of a stock valuation to determine whether to recommend a buy, sell, or hold.
These analysts are like astrologers who advised the kings and civil leaders of the 1500s.
1I'm putting my money in my credit union!
2i think that we all have to remember that there have been periods of crisis in the past and that we can and will rebound from this. it's hard to think about how the market is now, but we have to be positive - if not for ourselves, then for our kids.
3Post New Comment
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