
In many ways the financial crisis is complicated.. but in some ways it’s so easy a child could explain it:
Please enable Javascript and Flash to view this Flash video.
Please enable Javascript and Flash to view this Flash video.
Now the omelet making continues..


BANK CHANGE
Last two major investment banks get change OK
WASHINGTON (AP) - The Federal Reserve has stepped in again to help Wall Street.
The Fed’s board has voted unanimously to give the last two major investment banks a status change that will let them get into the commercial banking business. Goldman Sachs and Morgan Stanley will become bank holding companies.
There were concerns about their ability to survive following last week’s collapse of Lehman Brothers and the forced sale of Merrill Lynch.
Goldman and Morgan Stanley will be able to set up banking subsidiaries to take deposits and also get access to the Fed’s emergency loan program. They’ll also be able to get short-term loans from the New York Federal Reserve Bank during a transition.
The change also means the two investment houses will fall under the direct regulation of the Fed, not the Securities and Exchange Commission.

FINANCIAL MELTDOWN-BUSH
Administration seeks quick action on rescue plan
WASHINGTON (AP) - President Bush is pushing Congress for speedy passage of a financial industry bailout.
The plan would give the Treasury broad authority to buy up to 700 billion dollars in bad debt — a massive intervention the president hopes lawmakers can approve this week.
Democrats also see the need to move quickly but say the deal should include more protections for homeowners and taxpayers and if it takes a few extra days to negotiate, so be it.
They also want more oversight of which bad loans get bought up, and limits on executive payouts.
The president heads to New York today for the annual U.N. General Assembly session, but aides say he’ll be getting regular updates on the financial rescue between meetings with world leaders.

WORLD MARKETS
Asian rally continues
HONG KONG (AP) - The rally on overseas stock markets has continued today, a positive reaction to the 700-billion-dollar U.S. plan to shore up the financial system.
Congress is working on a Bush administration proposal to wipe out the financial industry’s credit crisis by buying up bad mortgage debt.
Japan’s Nikkei index finished the day 1.4 percent higher. Hong Kong’s Hang Seng index rose 1.2 percent
The benchmarks in Australia and Taiwan also advanced strongly. And in China, the Shanghai Composite Index soared nearly eight percent. Investors were buoyed by Beijing’s efforts to stabilize China’s market.
Even so, stock index futures in the U.S. are down, suggesting Wall Street may open lower this morning.
Is this a time for partisanship? Let’s hope it can be held to a minimum.

But this is a time for anger. You have a right to be mad. This is your money!
There is lots of blame to go around.
As a voter for president in 2008, your duty is to do your homework to find out who got us in the current financial mess, & why, & vote accordingly.
You also have a right to demand that both the government & financial institutions be more transparent & accountable.
Part of the problem with these financial institutions right now is that no one knows exactly how much money is owed, & to whom.
We will be stuck in this mess for as long as it takes for that entanglement to sort itself out.
What do you think?