When will the crisis finally be over?

US goverment are on the verge to put in place the $700bn rescue plan that will hopefully put an end to the crisis which has had led to one of the worlds largest crisis.

Chairman of the Senate banking committee, Chris Dodd said "fundamental agreement" on the $700bn rescue plan, after a meeting between the two political parties meeting at Capitol Hill.

One detail which has not been settled yet is how fast the funds should be dispersed.

But people are still disappointed and angry and they do not know if they can trust the goverments plans.
Whether this rescue plan will succeed or not is difficult to say. The markets and people are hoping this will be the large involvment that will change things around.

Can Sachs and Stanely survive alone?

Goldman Sachs and Morgan Stanley have said that they are not interested in Merging or Aquiring a commercial bank. They said that they had the financial strenght to continue with their business model.

Sachs reported their biggest drop in quaterly earnings since it went public 9 years ago, whilst Stanley put up a hard fight not too loose confidence with investors.

As Lehman Brothers have collapsed and the merger of Merrill Lynch with Bank of America, pressure is on for the last two major investment banks to turn around recent bad results.

Goldman chief financial officer have said that they will benefit from the demise of competitors and they have better pricing power and that will give them a better competitive advantage.

The counterpart for Morgan Stanley said that "these markets are all about confidence and we are very confident in our business model and balance sheet".

Time can only tell us whether these last two remaining investment power houses will succeed.