Wall Street plunged again Wednesday, with anxieties about the financial system still running high after the government bailed out insurer American International Group Inc. The Dow Jones industrial average dropped about 300 points.

The Federal Reserve is giving a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the company after it lost billions in the risky business of insuring against bond defaults. Wall Street had feared that the conglomerate, which has its tentacles in various financial services industries around the world, would follow the investment bank Lehman Brothers Holdings Inc. into bankruptcy. The ramifications of the world's largest insurer going under likely would have far surpassed the demise of Lehman.

"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 market 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.

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.

Lehman filed for bankruptcy protection on Monday, and by late Tuesday had sold its North American investment banking and trading operations to Barclays, Britain's third-largest bank, for the bargain price of $250 million. Over the weekend, Merrill Lynch, the world's largest brokerage, sold itself in a last-ditch effort to avoid failure to Bank of America Corp.

read more here

Benefits of a Secured Loan.


A secured loan is a loan where you will be required to use your property as security against the loan, so the lender is able to balance the risk of lending to you. The amount that can be borrowed differs from lender to lender and your personal situation. The sum that can be borrowed, the term available and the Annual Percentage Rate (APR) will depend on the value of your home, your capability to repay the loan and your personal circumstances.


You need to think very carefully about how you manage a secured loan. If you default on the loan you risk losing your home.


Secured loans allow you to borrow more and repay over a longer period than a personal loan – up to 25 years. They can usually be used for almost any purpose and as the lender has the benefit of security they can be offered to people who may be barred from other loans. Borrowers, who are self-employed, or have changed jobs or have earlier credit troubles will be considered for a secured loans, they are also useful for borrowing larger sums or where the applicant requires a longer repayment period.


Finding the best secured loan for your situation can be complex as there are many factors for the lender to take into account. With so many providers offering secured loans, trying to compare them all yourself could take forever. But fortunately there are many secured loan comparison services available online and all you need to do is enter your details about the secured loan you’re looking for and your personal circumstances. Almost all are free, impartial and any information given is confidential and secure.


As well as comparing the available secured loan, they will also ensure you get the best possible deal.



Other Articles: A Guide to Finding and Applying For Secured Loans | For the Cause of Serving Self Employed | The Millionaire's Loan

How to Find the Best Secured Loans


When you're in the market for a secured loan, you, of course, want the best loan possible. You may wonder, however, just what makes a secured loan the best. Generally speaking, the best secured loans feature low interest rates, maximum flexibility, and low monthly payments, all with a minimum of hassle for the borrower.


So where do you find the best secured loans?


Shop around and gather information from various lenders, including quotes. Review each loan quote to determine which loan offers provide for the lowest rates. After you've determined which loans offer the best interest rates, narrow the selection further by gathering the quotes that include the lowest monthly payments, as well as the best loan terms. Select the loan that offers the lowest rates, lowest payments, and best repayment options for your particular situation.



Carefully read the fine print of the loan offers you are considering. Some lenders add in unnecessary fees, cleverly hidden within fine print, that serve to increase the total cost of the loan. Always carefully read all terms of any loan offer you consider, including the fine print, and ask your lender for an explanation of anything you do not understand.


Don't be afraid to contact a loan officer or customer service representative for help with the application process or deciphering the details of a loan offer. Discuss the loan terms and rates in detail and make sure you're comfortable with everything the loan entails before you proceed.

Read more »

This is the result of a Readers Digest Survey

Before going to Europe on business, a man drove his Rolls Royce to a downtown NY City bank and went in to ask for an immediate loan of $5,000. The loan officer, taken aback, requested collateral.

"Well, then, here are the keys to my Rolls Royce,"

the man said. The loan officer promptly had the car driven into the bank's underground parking for safe keeping, and gave him $5,000.


Two weeks later, the man walked through the bank's doors, and asked to settle up his loan and get his car back. "That will be $5,000 in principal, and $15.40 in interest," the loan officer said. The man wrote out a check and started to walk away.

"Wait sir," the loan officer said, "while you were gone I learned that you are a millionaire. Why in the world would you need to borrow $5,000?"

The man smiled.

"Where else could I park my Rolls Royce in Manhattan for two weeks and pay only $15.40?"