AIG rescued by the FED

So the Fed comes in an bails out AIG. Well really they bailed out the entire financial market. Libor's are still very high as banks are just not lending to each other. Fear of counter party failures is rampant. Last night I went to dinner with a few of my brokers who said many "large" banks tell them, "No Investment names". None !

It seems to me it is only a matter of time before Morgan Stanley and Goldman need to find partners.

I also can't seem to think that the UK is in for at least the same situation as the States. Most of their mortgages are tied to variable rates, with liquidity very very tight it would seem to me that resets will be very high. This cannot be good. Possible sterling could weaken (even more then it has already done so) in the coming months.

Good Luck and Good Currency Trading.