Monday, July 14, 2008

Monday Morning

The futures are very perky this morning as no new negatives have popped up.

The government has promised that Fannie and Freddie will not go under, but that may take some heavy lifting. The Fed has guaranteed that either firm will be granted a line of credit or receive and equity investment if required. The stocks are going to rip today as the common is suddenly not worthless.

BUD finally agrees to get hitched to InBev. It took a while but props to them for getting another $5/share out of the deal.

The Feds are in the process of shopping Cali bank IndyMac this morning. Senator Chuck Shumer ironically stuck a fork in this one. According to the LA Times:

"IndyMac bank had been sent into freefall after comments by Democratic Senator Charles Schumer last month concerning the bank's health prompted a flood of withdrawals by panicked customers.
Schumer had sent letters to federal regulators, quoted in the Wall Street Journal, saying he was "concerned that IndyMac's financial deterioration poses significant risks to both taxpayers and borrowers and that the regulatory community may not be prepared to take measures that would help prevent the collapse of IndyMac.""

Oops.

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