Just heard on the news that the government has bailed AIG out. Another financial giant has fallen.
From what I've gathered, AIG's situation is bizarre. Their insurance arm is still very strong, but it's their mortage-securities arm that's bringing them down hard. And apparently it's not a true government bailout...they are the only ones who have to pay it back (in return they get control back based on percentage). JPMorgan got money for "saving" Bear Stearns they didn't have to repay. Fannie and Freddie were straight-up bought out by the government.
I have a feeling that we need to see the Dow under 10,000 before a correction starts.
The government owns 79.9%, so as far as I'm concerned they were bailed out.
As for the Dow...its currently down over 300 points to 10,743.27. At the rate its been dropping it could fall below 10,000 by the end of the week.