Market shakeup rattles nerves — UPDATE
Here’s a sampling of the morning papers in New York City:
No one is for sure what this all means yet. Merrill Lynch and Lehman Brothers tanked. That’s a given. Lynch has been snapped up by Bank of America, which, according to some, was a wise move. The two will make one mega-power once the “crisis” blows over. Lehman is history.
Now reports are that insurance giant AIG must raise more than 70 billion today to avoid bankruptcy. The company had insured many of the mortgage banks and other companies that haven’t done well this year. It needs cash now.
Meanwhile, stocks dove yesterday as news of all this broke. Some even called it the most significant event since the Great Depression. Keep your eyes peeled today. It could get rough.
For an Arkansas point of view, click here to access Roby Brock’s business blog out of Little Rock.
**UPDATE** Click here for an AP story reporting that the U.S. government may help bail out the insurance company AIG. Also, stocks are looking up, somewhat, today.