#1
Today has been a turbulent day indeed.

Lehman Brothers is filing for bankruptcy.

Merril Lynch has been bought out by Bank of America for half of what their stock was actually worth. About a quarter of what they were worth a year and a half ago. Pretty much Bear Sterns all over again. AIG is now "struggling to survive".

This has sent shockwaves throughout the world economy. The Dow Jones is done 415 points and falling. In the UK the FTSE 100 and 250 are both down over 200 points. In Europe, the IBEX is down over 500 points, and the CAC40 and the DAX are both down over 150 points.
The only good thing to come of all of this is that oil has fallen over 6% to $93.56 a barrell on news of the credit crisis and that Hurricane Ike has spared most of the Oil infrastructre in the Gulf Coast.

If anyone has a stock portfolio here, you should probably keep an eye on it, and perhaps completely avoid the financial sector.

Do you guys have any thoughts on this? Do you think that this may be the bottom of the credit crisis? Of the crisis in general? Or do you think that there may be more bad news, and perhaps worse news, to come?

www.reuters.com if you are interested in more info on this.
#4
Yeah, it's all over the news, and a little alarming. I don't know if this could be the bottom of the credit crisis - two of America's biggest Mortgage giants have fell, and now these two huge companies. We can probably expect other institutions, in the financial sector, to take a hit.

I'm not going into the financial sector this year.
Quote by denizenz
I'll logic you right in the thyroid.

Art & Lutherie
#5
Quote by TEK34
It'll be fine. Economy is overrated.



If the government doesn't step in soon, it won't be fine. This could be something to rock Wall Street for quite some time.
#6
People need to realize events like this are not just "whatever". This is huge, America is falling deeper and deeper into a hole, and with this, any hope to come out soon has been wrecked.
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Hey Kim DONG Il. Got nukes yet? DIDN'T THINK SO.

Here's some help with getting one built.

GOATSE.CX


Your pal Obama"

#7
Do you guys have any thoughts on this? Do you think that this may be the bottom of the credit crisis? Of the crisis in general? Or do you think that there may be more bad news, and perhaps worse news, to come?



i think the banks didnt themselves, and it will happen again, boom and bust economics will never stop in capitalist fee-market economies

to think all this sh!t happens and they still say that privately run enterprise is run better
#8
Here's Greenspan:
"Perhaps a once-in-a-century event"

All I can say is - I'm glad I bank with Bank of America. They seem to be riding this one out pretty well.
#9
its a little worrying.

but give it some more time and see what happens. there is no point in getting all scared and worrisome right away.
#11
Quote by jarudy
So arrogant and naive...


He is probably 14.
Quote by denizenz
I'll logic you right in the thyroid.

Art & Lutherie
#12
Get ready for the next Great Depression America. Expect more banks to go under such as Washington Mutual and Wachovia. If you or your parents have any money in these banks, tell them to get it out.
#13
I for one am very concerned. Its not just the economy, although cliche it is what makes the world go round. If you cannot purchase what you need or your purshasing power is suddenly undercut life is really tough.

I am not an economist by any means but it seems that too many transactions are being done without enough collateral to back it. It is a paper based economy, which suits investors, in which people do not have material possessions to back up their invesments. Do not know if that makes any sense.

I am worried because things are already difficult with rising prices for basics like food and oil; how do we deal with reductions in the availability and worth of currency. In the old days we had the gold standard and or silver sterling that guided how much money was printed and what it was worth. IN the post wwi era I think that ended, and Nixon totally scrapped the gold standard altogether I think. Anyhoo, Too much paper and phantom transactions taking place without enough to actually pay it off. Is there any value is this line of thinking.

How do we stem the tide and get things back on track. The american mortage and loan problem was maybe about greed as lenders figured they could lend to high risk clients and still manage to get thier cash. Now banks will possibly be ultra cautious about lending to the average joe, but not to major corporations, making the lifestyle of the man and woman on the street even more tenious financially. North Americans are in a major trap as they are massively in debt collectively, yet need access to credit of some kind to survive at the present or an approximately similar lifestyle as we have now. END RANT.
#15
Quote by irnbrurules
Get ready for the next Great Depression America. Expect more banks to go under such as Washington Mutual and Wachovia. If you or your parents have any money in these banks, tell them to get it out.


Ever heard of a "bank run"?
Quote by SomeoneYouKnew
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#16
Quote by C/ruel
Ever heard of a "bank run"?



Yup, there will be quite a few over the next few months. The problem is, is that if you have over $100 000 dollars in you're account, the FDIC can not insure that you will get all the money back. Every single American owes $88 000 in national debt. What I want to know is, what happens when that debt has to be repaid?
#17
These companies have been around for 100+ years(surviving the Great Depression). If that doesn't tell you something's wrong, then you need to be in a psycho ward.
1. Open My Computer.
2. Open C:
3. Click on WINDOWS.
4. Open the folder "Media."
5. Click on the file "onestop."
6. Listen.
#18
Well Lehman Bros deserved what they got, they speculated that housing would keep going up and acquired 60+ billion in debt which was completely irresponsible by management considering the implication it now has for the entire economy. You could have seen this coming just by looking at their balance sheet the only real question was when. On the plus side this could be an excellent time to buy stocks especially in the financial sector but I would do so very carefully.
Mr. Butlertron are you A handsome B smart C scrap metal or D all of the above
Scangrade thats easy I'm A and B but not C, so it can't be all of the above, but you can't fill in two ovals Nooo!
Mr. Butlertron the answer is C... you fuckwad
#19
Quote by Mockstairwell
These companies have been around for 100+ years(surviving the Great Depression). If that doesn't tell you something's wrong, then you need to be in a psycho ward.



+1, great post. Lehman survived through WW2 and the depression of the 30's and they are now bankrupt. I would hate to be Obama or Mcain right now.
#20
Quote by irnbrurules
Yup, there will be quite a few over the next few months. The problem is, is that if you have over $100 000 dollars in you're account, the FDIC can not insure that you will get all the money back. Every single American owes $88 000 in national debt. What I want to know is, what happens when that debt has to be repaid?



Interesting point about no guarantees that you will get your money back. Where does it go? I love stories about CEO's and chairmen of boards who get insane annual bonuses in the millions of dollars, while you cannot be guaranteed what is rightfully yours. What ever happened to notion fudiciary responsibility of organizations. They make poor decisions that screw everyone and those innocent bystanders cannot even get what is rightfully thiers. Terrible!

Edit: greatttone_12 makes an awesome point about speculators. Financial speculators were outlawed weren't they? Point being they speculate about matters in such a way as to be profitable to themselves, regardless of the truth of value of the information used in the specualtoin, and them leave us holding the bag. I believe in limited government, but there are some things that should not be left to the free market. Canada's banks are regulated thank god.
Last edited by TwistedLogic at Sep 15, 2008,
#21
This is from reuters.com


"A day after a financial tsunami overtook Lehman and forced the sale of Merrill Lynch in the biggest financial industry shake-up since the Great Depression, investors keep a worried eye on AIG."
#23
Quote by Seryaph
This is from reuters.com


"A day after a financial tsunami overtook Lehman and forced the sale of Merrill Lynch in the biggest financial industry shake-up since the Great Depression, investors keep a worried eye on AIG."



AIG are finished. The funny thing is that Bush hasn't even said America are in a recession yet, oh ok, I guess we just skip to depression then.