Financial Turmoil and Hurricane Ike in My Last Week at Work
There is a lot of financial news this week! To say it’s a crazy week in personal finance is an understatement! But, before we get to that, we finally have some updates to share with you on the stories going on at our house.
Digging. After Digging Up The Water Pipes at Our House and the
photo of our front lawn we waited to see how much the bill would be. It finally arrived: $5,300. Now we’re in negotiation mode…
Leaving my job. It’s my last week at work! Giving a few months notice after quitting, is a long time, but it’s finally here! I’m excited and nervous but feel good about the retirement cash flow. Maybe, just maybe, I’ll get caught up on all my email…
Missing the buy-out. I’m handling the possibility of missing a buy-out well. After talking at length with some close friends and my husband, I decided not to call HR. I realize that sometimes in life we make decisions and we must stick with them, even if we lose out.
Because part of my strategy for my “retirement” is a back-up plan to return to my employer, I did not want to take a chance of burning any bridges. In addition, the time frame is completely unknown. It could be weeks, months, or even next year… and time is not something I have to spare right now. So I’m going to enjoy my last week and go out with a happy, positive attitude!
My photo! A couple of you noticed that my picture showed up on Twitter. My husband has been bugging me to put one up, and I needed to get one taken for the Kids & Money site anyways. So there it is…. my picture… do I look like what you pictured in your head?
Stock Market Troubles
On Monday, the stock market had the biggest drop since the post 9/11 selloff. Some of it was recovered on Tuesday, but the financial markets have gone haywire as multiple major events happened all at once.
AIG is the largest insurer in the world. The government will take control of 79.9% of the company with a $85 billion dollar loan. Day-Traders watched AIG bounce around before the unprecedented government rescue.
Lehman Brothers Bankruptcy.
In a trend all too common with banks right now, the investment bank declared bankruptcy. “Lehman will be different from Fannie Mae and Freddie Mac; [it] will continue to operate and provide loans to thousands of households across the country…. [but, there will be a] significant loss of income for thousands of families who will be looking for work after the bankruptcy or the investors who had assets in Lehman stock and bonds.” However, could Lehman’s failure point to signs of a healthy economy?
Merrill Lynch Buyout.
To avoid failure, Bank of America will buy Merrill Lynch for about $29 a share, or $50 billion. “This offer means that Bank of America would pay a 70% premium over Merrill’s closing price on Friday, which is just unbelievable.” At least they are doing better than Lehman this week!
After all the turbulence, the fed decided not to change interest rates.
How it Happened and What is Going On
- Financial Meltdown Explained: Greed, Leverage, and Keeping Up With The Joneses
- As The Market Collapses, Here Is What Is Going On
- The Financial Roller Coaster Continues For Lynch, Lehman, And AIG
How will it Impact You?
- Lehman Brothers Bankruptcy and Merrill Lynch Buyout – What Do They Mean to You?
- Lehman Bankruptcy, Bank of America/Merrill Lynch: What Can We Learn Here?
- Ten Ways to Protect Your Finances From the Crisis
- Worried About Your Savings Accounts In Problem Banks?
As if the financial markets weren’t enough to contend with this week, Hurricane Ike made landfall causing damage, forcing evacuations, and creating a gas price frenzy.
If you are affected by the hurricane, I’ll be thinking about you in the upcoming weeks and months!
By the Numbers
Onto some more relaxing finds of the week!
- 50 Frugal Things You Aren’t Doing
- 10 reasons to be a good neighbor
- Choosing a Baby Daycare Center – 10 Questions to Ask
- 10 Ways To Improve Your Life Starting Today
- 22 Swift Tips to Increase Productivity
- Keep the Clutter from Returning: Five (Mostly) Easy Ways
- Twaddle-Free Books for Preschoolers: My Top 10 Favorites
- 5 Teen Millionaires: Kids Working Online
And finally, When Frugality Isn’t Enough.
Congrats on leaving your job! My wife recently made the jump to stay home mom so she can raise the kids full-time. I’m sure you will enjoy it!
Financial news has been interesting to say the least lately. I’m sure we haven’t heard the last of the current situation.
FFB’s last post: Personal Finance In One Simple Equation
Hurricane Ike was definitely an interesting experience. I was amazed that the storm traveled from the Gulf all the way through Pennsylvania and into Canada! Things are returning to normal for us, but I know it will be a longer road to recovery for hundreds of thousands of people in the Texas area, and more through the states to the north.
Patrick’s last post: Hurricane Ike Strikes Close to Home – in Texas and Ohio
Good luck in your last week. Cool pic. You’re a cutie. 🙂
PT’s last post: FNBO Pay Yourself First Weekend PrimeTime QuickHits
Good to hear that you are putting the issue of the buy out behind you. I believe that everything happens for areason, some we know and some we dopn’t know.
I am sure that you will be given something far better.
All the best as you step out into the free world!