What a week! Aren’t we glad it is Friday? If you thought as a Realtor or real estate investor you had a tough week, imagine if you worked at Lehman Brothers, AIG, or any number of major financial institutions. It was truly a historic week. And many are glad it is over.
But today was a better day than most this week. Wall Street investors applauded US Treasury Secretary Henry “Bail ‘Em Out” Paulson after he announced yet another massive bail out initiative. He’s bailed out Bear Stearns, Fannie Mae, Freddie Mac, and AIG. And today Paulson announced that he would form a new entity similar to the Resolution Trust Corporation (during the S&L crisis in the late 80s) that would oversee the orderly liquidation of bad mortgage related debts. This was by far the biggest move to date, as Paulson suggested that it would be “hundreds of billions of dollars.” But specifics weren’t available, and Paulson plans to meet with members of Congress over the weekend to start shaping the plan.
What else happened? Well, it looks like Securities & Exchange Commissioner Christopher Cox didn’t like hearing chuckles from all his friends that Presidential Candidate John McCain would fire him if elected President (I guess we know who Cox will vote for in November, huh?). So Cox made a dramatic move today to show that the SEC is doing something: banning short sales of 799 financial stock.
Read more

















