Melt Downs Bail Outs And You

Companies can choose to file either chapter 11 or chapter 7 bankruptcy. When a company liquidates, the trustee sells all of the assets to pay off creditors. Many GOP lawmakers believe the government shouldn't interfere in financial markets.

The collapse of the housing market has hit older homeowners. "The market will recover, but you won't."

Was The Writing On The "Wall"

Six months ago there were five major investment banks. Wall Street's transformation also means that private equity companies and hedge funds will be the new financial innovators and move further onto investment banking's traditional turf. Sold to American taxpayers for up to $700 billion: an unprecedented plan to buy distressed banks' least desirable mortgage assets.

Just how big is a billion; to put that into perspective, if you were to get $1000 a day, it would take you 2,737 years to get a billion, we can safely assume you wont get spend it once you have it. Multiply that by 700, there are reports 700 still is not enough!

http://www.classroomtools.com/billion.htm

The measure also proposes limited caps on the pay and benefit packages of companies who receive the government rescue, strengthens government oversight of the program and adds an insurance program for financial companies' bad assets.

The government will only buy mortgage investments originated on or before March 14, 2008.

The government's biggest economic bailout since the Great Depression is aimed not at relieving unemployment or reforming questionable business practices, but at resuscitating financial markets debilitated by lousy bets on the housing market.

Libor is the rate many banks pay for the short-term loans essential to their daily operations. "The credit markets had a stroke. • The Fed's weekly report on emergency loans provided to banks and investment firms;

The heart of the bailout plan gives the government authority to relieve financial institutions of the distressed mortgages and other bad assets on their books. Financial markets were subdued in early trading Sunday night after congressional leaders said they are poised to pass a $700 billion rescue plan for banks, brokerages, credit unions, thrifts and insurance companies.

The plan would allow the government to buy toxic mortgage-backed assets from embattled financial institutions, giving them fresh cash to bolster lending. With worries running high about recessions around the world, global stock market volatility should remain elevated. T-bill yields fell to zero for the first time since 1940 as investors pulled their money out of money-market funds and turned to the safest assets out there even if they offered no returns.

So where is your money?