America is on the ropes. Pummeled by the historic failure of its financial center, its economy is on the verge of collapse. America is now pleading with the world for assistance. But is there anyone to come to the rescue?
U.S. Treasury Secretary Hank Paulson is clearly in panic mode. On Friday, 119-year-old Washington Mutual, the largest U.S. savings and loan, bit the dust and was taken over and sold off by the government. Then yesterday it was announced that Citigroup would be “purchasing Wachovia, the fourth-largest bank in America, to keep it from collapsing. To facilitate the deal, the fdic agreed to accept $12 billion worth of Citigroup stock in exchange for insuring hundreds of billions in near-worthless Wachovia-owned mortgages. These two failures join a list of sensational tragedies that now include: Bear Stearns, Indy Mac Bancorp, Lehman Brothers, Merrill Lynch, aig, and Fannie Mae and Freddie Mac.