I don't quite understand the whole DowJones/index etc....but can someone please explain this federal bailout plan of $700 billion. Just is this expected to help the economy. AIG needed $85 billion itself to survive, at least for now. I mean there are co's making/losingnear that figure itself?
Bailout plan is a huge plan that covers alot of stuff but its main goal is to provide liquidity to the financial system.
in easy words government is lending money to banks so that the banks can lend it again to ppl like us and other small businesses.
and the $85 billion for AIG u r talking about is already been provided to them last month in the shape of a collateral investment with 11.50% intrest for 2 years.
i hope i made it clear :S lol or atleast tried my best