Banks have lost over $680 billion because of the huge wave of foreclosures that has hit the market over the past two years. And losses are beginning to ratchet up somewhere else, too: consumer credit card charge-offs.
The reason the markets have been in a freefall lately is because banks have been unwilling to lend to each other, much less to corporations. So if corporations can’t borrow money from banks, how are they supposed to make upgrades – like improving their IT equipment?
“In his article entitled ‘Financial Word of the Week: Bailout,’ Charles Delvalle said that if a person holds stock in one of the companies that is being bailed out, it may be nearly worthless. He further suggested that ’selling is usually your best option.’ This does not make sense to me. He, himself, said that bailing out Chrysler helped them stay in business.
It’s nice to own stocks, sure. But do those companies pay you dividends for owning them?
With all of the turmoil in the financial industry, one word that keeps making the rounds is “bailout.” So here’s what you need to know…
After the recent bailout of AIG, Freddie Mac, and Fannie Mae, investors are wondering if the Big Three – Chrysler, GM, and Ford – are next. Sorry to tell you, but they’ve already been bailed out.
Republicans like to call themselves the party of fiscal discipline. But if you dig into the numbers, you might find some surprises…
As a stock or bond holder, you are part owner of the corporation whose stock or bond you hold. So what happens if that company goes into Chapter 7 bankruptcy?