Economic Blues

I'm sure you have been following the implosion of the U.S. banking industry. I have been trying to avoid all the news but, I'll have to admit, it is quite difficult to dodge at this point.

First, the plunge of the housing market touching off the mortgage crisis. The mortgage crisis has made the banks sink. In the last few weeks it has been one financial institution after another, then last week one of my favorite banks, Washington Mutual, put itself up for auction and was purchased by JP Morgan. I just hope that Washington Mutual under the wings of JP Morgan will keep its corny, yet intimate, personality. I guess I am just happy that they have survived!

Now, I awake this morning to the news that there has been a Wachovia buyout. Apparently CitiGroup has bailed Wachovia out and will acquire all its banking assets and will take on $42 billion in debt with the FDIC covering any additional losses. As details of the Wachovia takeover surfaced, the stock dropped from a close of $10 per share on Friday to $0.94 today, or a 90% drop in stock price.

I have to say that I try hard to not follow finances or the markets, although some times I cannot help myself and this is one of those times. I know that the government is all over this and I hope for announcement of a solid bailout plan soon so we can all get back to business as usual.

Happy Monday!