Lehman Bros. FAILS -- NO BAILOUT.

[krabberkris 1]

Lehman Brothers failed tonight, and was not bailed out by the King of Moral Hazard Hank Paulson and the over-extended government. Good luck everyone.

Henry passed on this one. Gee , I guess we tax payers just got a "lucky" break". Ken Lewis at BofA announced he is ready for a merger. Hahahaha!!

My bet....WAMU is next. If you're there , GET OUT !!

And don't forget , when all is gone , they come and take your GOLD just like they did to those in 1929.

http://www.reuters.com/article/hotStocksNews/idUSN0842492020080914

The man who smiles when things go wrong has thought of someone to blame it on.

[krabberkris 1]

" Wall Street even arranged a rare emergency trading session on Sunday to allow dealers in the $455 trillion derivatives market to reduce their exposure to Lehman, though turnover was said to have been light"


--Another words , just hang in there and hold your breath. We're going for a nosedive !!

nineteen twenty nine

The man who smiles when things go wrong has thought of someone to blame it on.

[Rookie120 0]

Quote

nineteen twenty nine

I dont think it will be that bad. It's gonna be a bumpy ride but not that bad.

If you find yourself in a fair fight, your tactics suck!

[krabberkris 1]

That was all the "speculation" and commentary in.........late , 1928


Relate what is happening RIGHT NOW to an historical perspective.

Yup !! It could get that bad !

WIKIPEDIA...(in short)

"Recession cycles are thought to be a normal part of living in a world of inexact balances between supply and demand. What turns a usually mild and short recession or "ordinary" business cycle into a great depression is a subject of debate and concern. Scholars have not agreed on the exact causes and their relative importance. The search for causes is closely connected to the question of how to avoid a future depression, and so the political and policy viewpoints of scholars are mixed into the analysis of historic events eight decades ago. The even larger question is whether it was largely a failure on the part of free markets or largely a failure on the part of governments to not exacerbate widespread bank failures and the resulting panics and reduction in the money supply. Those who believe in a large role for governments in the economy believe it was mostly a failure of the free markets and those who believe in free markets believe it was mostly a failure of government that compounded the problem.
Current theories may be broadly classified into three main points of view. First, there is orthodox classical economics: monetarist, Austrian Economics and neoclassical economic theory, all of which focus on the macroeconomic effects of money supply and the supply of gold which backed many currencies before the Great Depression, including production and consumption...........

Second, there are structural theories, most importantly Keynesian, but also including those of institutional economics, that point to underconsumption and overinvestment (economic bubble), malfeasance by bankers and industrialists, or incompetence by government officials. Another theory revolves around the surplus of products and the fact that many Americans were not purchasing but saving.........

GREAT DEPRESSION on WIKIPEDIA

The man who smiles when things go wrong has thought of someone to blame it on.

[kallend 2,146]

Sad thing is that the behavior of the greed merchants is going to have a negative effect on everyone.

In fact, the architects of greed probably come out of it far better off than the taxpayers who will foot the bills.

...

The only sure way to survive a canopy collision is not to have one.

[krabberkris 1]

And no political NAMES needed. (OK , I must throw in MOZILLO) It's HISTORY as usual. His name will be in the books ...(IHOPE)

The man who smiles when things go wrong has thought of someone to blame it on.

[danornan 79]

Interesting how Lehman Brothers upper management managed to pay out around 6,000,000,000 (that's 6 BILLION) in bones this past year! They knew what was coming and decided to raid the company. They were not the only ones and the public will pay the bill.

Dano

[Erroll 80]

Quote

Interesting how Lehman Brothers upper management managed to pay out around 6,000,000,000 (that's 6 BILLION) in bones this past year!

Dem bones, dem bones, dem .... expensive bones....

[Misternatural 0]

>>greed merchants

Please tell me you're not referring generally to investors in the equity market.

Beware of the collateralizing and monetization of your desires.
D S #3.1415

[kallend 2,146]

Quote

>>greed merchants

Please tell me you're not referring generally to investors in the equity market.

They (along with taxpayers) are the big losers in this.

The greed merchants are the fat cats who ran these banks into the ground for their own benefit.

...

The only sure way to survive a canopy collision is not to have one.

[Misternatural 0]

>>Relate what is happening RIGHT NOW to an historical perspective.

>>Yup !! It could get that bad !

The structure of the banking industry and equity markets today has built in collapse protection because of their complexity- Despite the grim reaper demeanor of some pundits. The Dow futures right now are showing a +- 400 point drop on the news. Thats heavy volume but not totally unexpected given current volatility-Todays investors know that a total failure would require a multi pronged collapse in the infrastructure, it would take a series of major catastrophes to initiate such a decline.
Savvy investors use these dips as a buying opportunity, the smart move right now would be obviously to continue to short the financials, and go long on equities in sectors like energy & consumer staples etc. things that todays human definitely needs to live- and survive on the dividends while the market makes a recovery.

Beware of the collateralizing and monetization of your desires.
D S #3.1415