Bloggy Business Today

The global meltdown continues as stocks continue to dip in the World Market. Actually, all countries are suffering and apparently this is the worst financial crisis that the world has encountered since the last decade.

The financial bailout has been set but from all indications, it seems that it has not done any good. It has helped the banks in need but its impact on the business sectors has really be a rocky ride. And to top it all off, you would think that the bailout plan would have put a halt towards corporate shakeups but why is it that companies today are still seeking new investors or worse, offering their companies for sale?

Notable names have been in the news lately. Among them include AIG and Morgan Chase. Now while they are still standing, you know that a slight tilt can push them overboard. So to avoid the debacle, some are pulling down rates to entice consumer loans. Are they feasible?

If banks cut down interest rates, it can help entice lending growth. But what assurance do we have that such a recourse would pry us away from experiencing the same crisis we are in now? Going deeper, how can we be sure that such a move would not push us towards a worst situation than where we are in right now?

Consumers are getting wiser and basing it on their past experience with financial issues, it is apparent that they are trying to avoid securing loans. It may be a tougher ride towards living normally but it is indeed better than being swarmed with demand letters and subpoenas regarding your debt. So do you really think they would bite the interest rates cut offered by banks all over the world? I think not!

[tags]financial_bailout, bailout_plan, global_meltdown, business_sectors, morgan_chase, consumer_loans, demand_letters, debacle, subpoenas, world_market, aig, recourse, financial_crisis, interest_rates, banks, stocks, consumers, investors[/tags]

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.

Source

[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]