Deal or No Deal? Sept 26th Financial Market Recap
Hello Friends,
I am sorry for the late update, I was hoping to have some clear and concise information going into the weekend on the state of the Fed Rescue plan of the financial markets. Ahhhhhh, yeah right! So the question of the day was deal, or no deal? As of right now, it looks like our legislators are going to work on this through the weekend and most likely have a plan and a vote by market open Monday morning.
Typically the headline reports for mortgage backed securities is the Jobs report that comes out once a month and was due today. Well, the report was not even a blip on the radar screen with everything else going on.
WAMU failed and was purchased at the last minute by JP Morgan/Chase last night for 1.9 Billion dollars. That is a purchase for about 1% of the value of WAMU, their assets and deposits as of 9 months ago. To see the largest savings and loan bank go down in flames is a prime example of how dire this economic crisis we are in. As multi-billionaire Warren Buffet said yesterday, the seriousness of this situation is the "Pearl Harbor of our financial markets health." When a person like WB feels our situation is that drastic, I would say there is reason for a Fed action.
Please watch the video for more details!
Have a great weekend and as always, Be Blessed!
Comments(5)