The Barrage of news is pouring in and I am trying to get my business taxes done before the deadline.
So forgive me if this post is a little weak.
It's being reported now we will have the worse recession in 25 years, if we are lucky.
''It's certainly going to be the worst since the 1980s,'' says Bradford DeLong, an economics professor at the University of California at Berkeley who worked at the U.S. Treasury Department from 1993 to 1995. ``The hope is that it won't become the worst unemployment business cycle since the Great Depression
There goes the Royal Bank of Scotland
Royal Bank of Scotland Group Plc, the second-biggest U.K. bank before shares collapsed last week, ousted its chief executive and turned over control to the government in exchange for a 20 billion-pound ($34 billion) lifeline.
European leaders agreed Sunday on a coordinated rescue plan to guarantee inter-bank lending, inject cash into the banking sector and take other measures to beat back the crisis caused by the global financial meltdown.
The leaders pledged to work together to prop up banks whose credit activities have been all but frozen in recent days, trying to send a strong message of unity and action before financial markets open today.
The package follows a major British initiative, announced last week, to commit about $87 billion for a partial nationalization of the banking sector. On Friday, U.S. Treasury Secretary Henry M. Paulson unveiled a similar plan to take direct stakes in banks and other financial institutions using a portion of the $700-billion financial bailout package aimed at buying distressed mortgage-backed securities.
The IMF says this coordinated action should work. Can anyone tell me how just 24 hours ago the IMF was warning on a global meltdown?
Meanwhile stock market futures are surging. Dead Cat Bounce?
Maybe it's just me but beyond guaranteeing no losses on inter-bank loans, as well as deposits and investments the news seems to be simply trying to boost confidence with a lot of press releases. Almost every financial news media outlet has articles on the surge in market futures.
The Miami Herald literally did a FAQ on the differences between Paulson and the EU plans.
Hopefully others will add more insight on what's really going on in the comments.