JAL Thoughted

Financial Journal for September 19 2008

Stock Quotes	9/12/08 Close:	% Change from Prior Week	9/19/08 Close:
Dow Jones	11421.99	-.29	11388.44
NASDAQ	2261.27	.56	2273.90
S&P	1251.70	.27	1255.07

Market Movers:

• AIG Bailout
• Mother-of-all Bailouts Announced
• Lehman Brothers files for ch.11 bankruptcy, Bank of America buys Merrill Lynch
• Fed funds rate stays unchanged at 2%

Important Market Development Summaries:

• Fed Takes Control of AIG With $85 Billion Bailout, Sept. 16^th 2008. Bloomberg.com:
  • Fed provides two-year loan and take 79.9 percent ownership.
    • This fails to calm investors and markets proceed to spiral downward.
• U.S. stocks surge on rescue report, September 18^th 2008. BBC.com:
  • Stocks rallied the most in six years on prospects the government will formulate a plan to shore up financial markets.
    • The mother-of-all bailouts set around $700 billion to buy troubled assets.
    • Ban on short-selling for 799 financial stocks is put in place. (Bloomberg.com, Sept. 19^th, 2008)
  • Six of the world’s top central banks released $180 billion to increase amount of credit available.