Monday, September 29, 2008

Bye Bye Wachovia, and the Bailout is Rejected

Image by rednuht

Today has been a pretty crazy day in the financial world. Citi bought Wachovia today, therefore rescuing it from a messy failure. Wachovia was the next big bank on the watch list, so that will probably make things a little easier for them. 
The stock markets have tanked today after it was announced that the house rejected the $700 Billion Bailout plan. I have to say, I'm a bit relieved that it was rejected, mostly because yes... it is A solution, but I don't think it is the RIGHT solution. 
So basically, the financial sky is falling. Hang on to your hats because it is going to be a bumpy ride. 
Here is what I'm doing. Nothing. I'm sticking to reducing my debt and building my savings. I'm keeping my money where it is. I don't have any money in the stock market because it's not my kind of thing. I feel like it's too volatile. I have my trusty ING Direct accounts, and the rest of my money is in Bank of America, which appears to be one of the more stable banks right now. 
What should you do? Well, if you have a WaMu or a Wachovia account, don't worry. You should have a pretty seamless transition to either Citi or Chase. If you have money in the stock market you need to talk to a financial advisor right now to figure out if you are invested in the right stocks. Consider making adjustments to your portfolio. 
My biggest piece of advice, though, is to tighten your belt a little if you can and to try and save a little more and spend a little less while we all ride this out. 
They will be putting the bailout back on the table soon, I believe. Hopefully they will have come up with a solution that helps people more than institutions, but we'll see. 

On a side note, it's my wonderful husband's birthday today. 

Happy birthday, Andrew. You are my heart. 

1 comment:

Family Man said...

I think they need to target the bailout to consumers struggling with debt. Let the taxpayer write down say 50K in debt, with some limits say income, and types of debt, and they will spend. If they spend the banks will make money.