Before the Bell 9/26/2008

[0:12] ..." David Washington Mutual one of the country's largest banks seized by the FDIC. "...

[0:40] ..." were going to be totally -- lock in this thing so the FDIC's stepped in and I think as important as they stepped in. Because we don't want to have a run on bank deposits"...

[1:49] ..." morning source that big rise yesterday afternoon on the deal right now S&P futures are down nine point six that was -- 140 -- down 34 we had oil prices down about three in a gold is up about four dollars as we."...

[2:19] ..." posturing. I think right now we're going to see that Paulson and Bernanke her comeback of the smartest guys in the room and more than likely they've got -- so this pitch -- gotta make people understand that there is a connection between Wall Street mainstream they've actually done. The best work over the last three weakens -- continue this week at work deceive you get this"...

[2:41] ..." But 32 -- battle Royale between Wall Street and main street."...

[0:00]" Time for our before the bell stock report WBZ financial editor -- crew says in studio with me this morning good morning day I am it's nice to be here it's nice to have you here on -- busy D day for -- certainly for you let's start with wanna David Washington Mutual one of the country's largest banks seized by the FDIC. "

[0:16]" Yeah it's amazing and I wanted to about sports today because this is his look that's three weeks have been crazy. If you look at what's going on there -- that there has been a brawl on markets and while moved you know what it's really not a surprise -- the reason is because this -- has been shopping itself around for awhile. It happened and they had to come in and do this early so we -- JPMorgan which is probably one of the strongest of banks out there right now is they were vote in the Bear Stearns situation. And I think shareholders were going to be totally -- lock in this thing so the FDIC's stepped in and I think as important as they stepped in. Because we don't want to have a run on bank deposits and that was what was happening there so. You don't want to come in late they learned that back in the US savings and loan crisis and the RTC back in the early eighties so they came in there will absolutely be more come on this one let's just hope -- be as this one is we don't want. An important also wanted to kind of bring into this maybe this will be a catalyst to get this recovery plan done is -- bickering right now in Washington but. What we have here is not an economic or even an industry crisis that is if you accept the financials -- we are having is a liquidity crisis were people. Want to know if the money saved and they need cash to be able to buy their cars and in the short term commercial paper market is really where the essence is. Is because we need that cash we need to meet the payroll we have to pay your bills companies want to experience I think there's the fear that this liquidity crisis alternately turns into an economic crisis and if it does that's when it's going to be real problems I think that's what the markets are looking -- right now yesterday we had a nice rally late in the day in the markets as we saw at -- hope that this would be -- unfortunately -- was -- yesterday. But we're given that back this morning source that big rise yesterday afternoon on the deal right now S&P futures are down nine point six that was -- 140 -- down 34 we had oil prices down about three in a gold is up about four dollars as we."

[2:06]" We've learned kinda like bonds there's a inverse correlation between the price of bonds and the yield -- guess what there's an inverse correlation between the number politician you put in a room and the likelihood that some that actually gets done so there's a lot of bickering posturing. I think right now we're going to see that Paulson and Bernanke her comeback of the smartest guys in the room and more than likely they've got -- so this pitch -- gotta make people understand that there is a connection between Wall Street mainstream they've actually done. The best work over the last three weakens -- continue this week at work deceive you get this penciled in at 930 you'll also here with the president has to say maybe there's some interest in it says there rules."

[2:41]" But 32 -- battle Royale between Wall Street and main street."