I’d say they are trying to stop the world’s biggest economy from imploding. I agree its too little, but it may or may not be too late. It certainly has shown up a massive failure in regulation by the US who have allowed this situation to get to where it is now. How the hell does a multi billion dollar company like Lehman Brothers just become insolvent overnight and close its doors? Who signed the last audit report 2 months ago? Why arent they being held to account as well?

I’m waiting to see the detail of the rescue package. If the economy can keep on running by the US Govt effectively re-nationalising institutions like Fannie Mae and freddie mac, then the bailout will have been worth it. If they end up just giving loans to the companies, then that simply stinks. My dad owns a shop and is struggling with declining profits. Can I have a handout too?

Its interesting to see the US Govt picking and choosing who lives and who dies. eg Lehman Brothers was allowed to die whilst AIG was given a last minute lifeline. Its this aspect of what is happening right now that worries me. Some people have already been “held to account” – eg all those executives at Lehman now suddenly have no jobs, a cv that reads like a doggie bag, and all those shares and options in the company now worthless. I dont really have any sympathy for them by the way. But why should they be penalised whilst execs at Freddie Mac, AIG, etc get away with it. This is a dodgy solution to a dodgy problem.

I’d stay away from the stockmarket for a while. Cash is King.