Lehman Brothers goes Bankrupt
My dad, the financial genius says it best
"What a day in the financial world. Lehmam Brothers, a 184 year old company is going to file for bankruptcy. Bank of America is buying Merrill Lynch. A special fund of $70 Billion is being set up by commercial banks to fight off the short sellers. All these companies and their Board of Directors and the Sec of the Treasury and the Federal Reserve Members all worked over Saturday and Sunday. All this and the American Public had no clue and still doesn't, that the U.S. Financial System was at risk for collapse because all the dominoes were falling one by one. The congress will start hearings next week but its just window dressing. Basically the Congress caused the whole thing in the first place years ago when they wanted to get more poor people into housing and passed a law that would let folks buy a house with nothing down or even worse, no credit. Well that started the boom. When the Republican members of the banking committee tried to change some of the rules before Freddie/Fannie failed the special interests kept it from coming out of committee. Today was one of the major financial days in the history of America. Because they don't teach finance of a major scale in our colleges 99% of American have no clue of the serious effects of what was going on. They only hear about foreclosures and folks walking away from their homes. That was just one Domino. Anyway, tomorrow will be a wild day on the stock market. There would have been runs on banks by next weekend if the big banks hadn't gotten together and set up a fund to fight the short sellers who have been making billions by driving the stocks down of all the mortgage and brokerage firms. Now all the companies will have private liquidity to fight off the vultures. I'm not too sure if AIG will be able to move fast enough to keep from being the next big target. Anyway, I tried to explain this whole thing to your mom at dinner and realized that most folks wouldn't know what I was taking about. The point is your bank stocks were not safe this morning but are better off tonight and we won't have to worry for a little longer if the Country is going to go broke. As long as the Chinese don't pull their money our social security is safe. Yippee!
Also, don't buy any insurance companies for a while. I think IKE is going to cost them about 10 Billion at least. If you own any AIG watch it close. It might be next after LEHMAN. "
Head on over to AP Business wire or Drudge for all the latest.
"What a day in the financial world. Lehmam Brothers, a 184 year old company is going to file for bankruptcy. Bank of America is buying Merrill Lynch. A special fund of $70 Billion is being set up by commercial banks to fight off the short sellers. All these companies and their Board of Directors and the Sec of the Treasury and the Federal Reserve Members all worked over Saturday and Sunday. All this and the American Public had no clue and still doesn't, that the U.S. Financial System was at risk for collapse because all the dominoes were falling one by one. The congress will start hearings next week but its just window dressing. Basically the Congress caused the whole thing in the first place years ago when they wanted to get more poor people into housing and passed a law that would let folks buy a house with nothing down or even worse, no credit. Well that started the boom. When the Republican members of the banking committee tried to change some of the rules before Freddie/Fannie failed the special interests kept it from coming out of committee. Today was one of the major financial days in the history of America. Because they don't teach finance of a major scale in our colleges 99% of American have no clue of the serious effects of what was going on. They only hear about foreclosures and folks walking away from their homes. That was just one Domino. Anyway, tomorrow will be a wild day on the stock market. There would have been runs on banks by next weekend if the big banks hadn't gotten together and set up a fund to fight the short sellers who have been making billions by driving the stocks down of all the mortgage and brokerage firms. Now all the companies will have private liquidity to fight off the vultures. I'm not too sure if AIG will be able to move fast enough to keep from being the next big target. Anyway, I tried to explain this whole thing to your mom at dinner and realized that most folks wouldn't know what I was taking about. The point is your bank stocks were not safe this morning but are better off tonight and we won't have to worry for a little longer if the Country is going to go broke. As long as the Chinese don't pull their money our social security is safe. Yippee!
Also, don't buy any insurance companies for a while. I think IKE is going to cost them about 10 Billion at least. If you own any AIG watch it close. It might be next after LEHMAN. "
Head on over to AP Business wire or Drudge for all the latest.
Human stupidity always seems to be at the root of crises like these. This time's no different. As things started to soften in 2006, I knew that the easy-credit, no-money-down attitude at the root of the latest real estate boom would come back to haunt society. And it has. Big time.
ReplyDeleteIn many respects, we have no one to blame but ourselves. What ever happened to saving up for what we wanted, and to living within our means?