I am Watching now...

Sunday, September 21, 2008

What a busy and fulfilling week!

Well where can i start? Too much things going on and off. Well let's recap...

Day 1- Lehman Brothers, a 157 years old company filed for bankruptcy in the US. No bailout says the TREASURY and FED. Meanwhile AIG announces to sell its assets to raise capital. Lehman became the third brokeage company and the only company failed to get a bailout unlike MERRILL LYNCH and BEAR STEARNS. On sunday previous day, the 2 companies have been meeting to discuss plans but the plan fallout and Lehman had no choice but to end it.

Day 2- Drama in the wall street continues as traders move to sell shares of AIG to new lows and word has been spreading that the FED will cut rates to stabilise the markets. The FED meets at 2 later in the noon. The FED announces that interest rates put on hold and will keep monitoring the markets, ready to step in if required. AIG pressured all day finally gets what it wants, the FED will bailout with a USD 85 BILLION loan, Gives up 80% loan. The market reacted as always violently fist dropping then up three digit.

Day 3- Traders digesting and looking for best buy around the markets but cannot find. Somehow GOLD managed to steal the show with a record of its own, intra day high of about USD 90 as a safe haven buying. AIG as always threaten session lows and dragging DOW down. In the end DOW ended down more than 400 points. More blood ahead.

Day 4- Markets around the world fall like domino and central banks pumped in billions to help markets and some markets saw reverseal. Another day of violent trading. DOW open with the news of banning short selling as stocks struggle to find tempo. After going up and down, in and out of index at the very last hour of trading, rally began and close with a 400 points on the upside. TREASURY broke the news that plans are laying out to 'clear' up toxic debts and mortages and much more things to stabilise he markets.

Day 5- Markets around the world respond positively with eagerness.

No comments:

Video