With the sharp plunge of Dow Jones Industrial Average, especially after the rejection of the bailout bill this afternoon, this question baffles us all.
But for the past several days/weeks/months, numerous small, medium and large banks and financial institutions are sending out S.O.S. calls for urgent assistance. Some are allowed to die, others are being propped up (read: bailed out).
It seems that stocks are allowed to fall and a frenzy is created in the markets up to a point where, for the common man or investor, it is really hard to tell what’s truly going on behind the scenes. At this point, enter JPMorgan Chase, Bank of America and Citigroup; they bid and buy these old giants for pennies (100), grab the branch networks and all the goodies that go with the takeovers!