See, this is all because the democrats wanted this recession to happen! They should be hung! Traders! I love you Mike Castle!
For the first time since the Depression, the Fed has been extending credit directly to securities firms in an effort to stabilize the capital markets. The central bank also expanded the types of collateral that firms can use in buying Treasury securities at a government auction next week. The moves helped shore up confidence in the financial system and set off a rally in shares of banks and brokerage firms.
The CIT Group, a century-old company that lends money to small businesses and midsize corporations, was forced to draw on $7.3 billion of emergency bank credit lines. Its shares and bonds plummeted.
CIT prospered when credit was easy. But its fortunes began to plunge last summer as the credit crisis that began in the market for subprime home mortgages started to spread.
Personally, this isn’t CIT’s fault. It’s the greedy homeowners that had no business going and getting a mortgage they didn’t know they would be able to afford when gas prices were $2 a gallo, milk was $3.5 and electric was $75 a month and Bush was telling them to spend money to defeat terrorism! Idiots! They should know better. They probably have cable and cell phones too…