Which Banks will Remain Standing? Stocks Recovering

After the rejection of the proposed financial bailout by the House of Representatives in the U.S., the world now finds itself in shambles as investors and companies now have to assess their current financial standing. Hard hit here would be the banks, a route we all saw when companies like Merril Lynch, Morgan Stanley and Lehman Brothers were forced to look for potential buyers due to drowning debts.
But while Monday seemed to have brought the entire stock market down, it has shown some semblance of life earlier today. Recovering from the shocking decision that was passed, perhaps it could signal something positive for a change. It may be a glitch for now but at least you know that some life is being breathed into the business faults at the moment.
The future does look bleak at this point and unless a new brainstormed model to help economic and financial models are proposed, expect the next couple of months a bumpy road towards trying to recover from losses and economic turmoil.
Stocks rallied Tuesday as investors scooped up shares battered in the bloodletting that followed Congress’ failure to pass a $700 billion bank rescue plan.
Credit markets remained tight, with several closely-watched measures of bank lending hitting all-time highs, as banks hoarded funds.
[tags]financial_bailout, economic_turmoil, lehman_brothers, financial_models, house_of_representatives, merril_lynch, morgan_stanley, credit_markets, bumpy_road, shambles, stock_market, debts, losses, banks, stocks[/tags]



