Washington Mutual (WM) has apparently put itself up for sale. An MSNBC article discusses the fear that is gripping the marketplace as investors worry another shoe could drop.
"People are scared to death," said Bill Stone, chief investment strategist for PNC Wealth Management. "Who would have imagined that AIG would have gotten into this position?"
He said the fear gripping the markets reflects investors' concerns that AIG wasn't able to find a lifeline in the private sector and that Wall Street is now fretting about what other institutions could falter. Over the past year, companies including Lehman and AIG have sought to reassure investors that they weren't in trouble, and now the market isn't sure who can and can't be trusted.
"No one's going to be believing anybody now because AIG said they were OK along with everybody else," Stone said.
The two independent Wall Street investment banks left standing - Goldman Sachs Group Inc. and Morgan Stanley - remain under scrutiny, as does Washington Mutual Inc., the country's largest thrift bank. Morgan Stanley revealed its quarterly earnings early late Tuesday, posting a better-than-expected 7 percent slide in fiscal third-quarter profit. It insisted that it is surviving the credit crisis that has ravaged many of its peers.
A Bloomberg story says some of the problems today have to do with bank lending seizing up.
"It's ugly," said Michael Mullaney, a Boston-based money manager for Fiduciary Trust Co., which oversees $10 billion in stocks and bonds. "It's about the worst I've seen it in 25 years. You have to have free-flowing credit to lubricate the system. That's not happening right now."
Marketwatch is reporting that the Wall Street Journal says Citigroup and Wells Fargo may be interested in buying WaMu.
One bright spot on the day was gold which scored its biggest 1-day increase ever. Gold prices climbed $70 to settle at $850.50 in the regular session. Gold prices also climbed another $20 in after-hours trading.
Gold traded at a record $1,000 an ounce for the first time today. The news coincides will the recession concerns, the weak dollar and the high price of oil. The BBC reports that since the beginning of 2008 gold has jump 20%. Gold also climbed 32% last year.
Since the beginning of the year the value of gold has increased by about 20%, after it rose 32% in 2007.
Gold eventually settled for the day at $993.80, up $13.30 an ounce.
Analysts say gold will stay high as long as dollar and growth fears remain.
"Every bit of bad US economic data boosts gold in two ways," said Fortis Bank.
"First because it reinforces the return of its role as a safe-haven asset, and second because the dollar falls on expectations of further Federal Reserve rate cuts."
A 52% climb in just twelve months might mean gold has climbed too quickly notes USA Today columnist John Waggoner here.
If you're hankering to buy gold, you may get a chance to buy it more cheaply in the next month or so. Gold bullion has soared 52% over the past 12 months and 19% this year — and it may have gotten ahead of itself. But if you want to invest for the long run in gold — which can have a role in a diversified portfolio — you have three good options: gold bullion coins, gold exchange-traded funds and gold mutual funds.
Then again, Waggoner's column also mentions that James DiGeorgia - editor of the Gold and Energy Advisor website - says gold could climb to $2,500 an ounce.
High Gold Prices Make Oscar Statues More Expensive
The price of gold has been rising over the past several years. Bloomberg reports that the price of gold is also making those Oscar statues more expensive. They cost $500 this year compared to $400 last year according to Blooomberg.
Gold prices are climbing as the dollar falls. The Financial Timesreports that Gold prices climbed to $752.80 an ounce - the highest price for gold since January 1980.
The dollar hit a record low against major currencies and gold reached a 27-year high on Friday as investors ignored data suggesting that inflation moderated last month.
Analysts said the prospect of rate cuts by the Federal Reserve and stronger growth outside the US was weighing on the dollar and boosting commodities.
"The Fed's rate cuts have a specific driver - growth risks for the US economy," said Naomi Fink, senior currency strategist at BNP Paribas.
A USA Todayarticle about today's new gold record has a chart that shows how investors have been seeking shelter in gold over the past two months.
Stocks tumbled again today despite the 
Gold traded at a record $1,000 an ounce for the first time today. The news coincides will the recession concerns, the weak dollar and the high price of oil. The BBC 