Dominoes Effect is going on

9/29/08

Here is the financial news from Europe this morning before Citigroup takeover Wachovia.

Belgium: Fortis bailed out on cooperative effort of Belgium, Netherlands and Luxembourg governments
Germany: Hypo Real Estate bailed out by German goverment
UK: Bradford & Bingley nationalized by UK government
Iceland: Glitner Bank receiving government assistance
Italy: Unicredito shares suspended, limit down

Well, this is what I have been called the huge snow ball is keep rolling downhill and growing bigger. Dominoes alert is on, folks. WB ( Wachovia stock is trading below $1 now ). Well, NCC is next?! Look like government is using FDIC to split bad banks to bigger banks like JPM, BAC, C, WFC...etc. The stock market so far is not impressed with the bailout plan as the credit market is dead. The Federal Reserve has injected a tremendous amount liquidity into the global money markets by increasing swap lines ( from $290B to $620B ). If the plan is not approved, Citigroup is next to fail( why no FDIC protection since FDIC only has about 60 billions to cover any failure, and Citigroup is too big to cover. Moreover, if the plan is not approved or fail, means government has no money or congress disagree to save those shaky banks) Everyone, if you have account in Citigroup, it may be wise to withdraw all money out to other local sounded bank. I have resource to find which local banks are in healthy status than those crappy banks. No plan, game over and C will be goner. Good luck.