Lehman Brothers Close To Collapse - US Chapter 11 insolvency procedures starting

Originally posted by SeekingAlpha
Now this is not an endorsement of democrats because they too have their fiscal issues. But, the republicans are just destroying our country right now. There is absolutely no accountability in the republican party and it is just an absolute shame.

Don't even BOTHER trying to instill the illusion that either party isn't fully complicit in this scenario.

The two party system is an apparatus of the transnational corporate body. They are in a win win scenario, in the end we pay, not them.

Corporation filing for protection from liability to debtors, is this ironic? A global-level lender filing for bankruptcy?

This is the transfer of wealth on a gargantuan scale. When, if ever, will it stop? Under what conditions can this process of imaginary money lending be controlled, or is it a given that only certain players get to manipulate the field at their whim?

reply to post by Maxmars


Star for you my friend. The fact is the 2 party crime family have ripped off the people of the US for at least 96 years or since the feds inception. The creation of credit and then the retraction like what we saw here oh so clearly causes these issues and the banks although it looks like they are in trouble are actually setting up for a HUGE profit making scheme at the taxpayers expense. Im glad Lehman is going down and they are being allowed to this time. But what scares me is the continual consolidation of the banks. Soon we will get bank A and bank B to choose from and that is it.

Pertinent comment from a visitor to Wall Street Journal's online Market Watch:

We are here because free flowing credit is an instrument used by the central bank to bait the broad community into full dependence on their ever-devaluing counterfeit cash, cash they print by the bushel and sell to the government at a hefty profit, to facilitate government spending without taxation. This is the sole cause and the ultimate purpose of macro inflation.

INFLATE to bait; DEFLATE to confiscate.

Inflation-ridden, devalued cash produces insane asset prices, and correspondingly insane interest payment cash flow back into the central bank. Currently, 11% of our total Federal budget is interest paid to the central bank, the private Federal Reserve.

These high prices have nothing to do with the assets' true value. The value, or the amount of stuff you can trade other stuff for, always remains essentially unchanged, the trick is purely a price phenomenon. When the illusion is complete, which really means the central bank has sucked all of the available interest cash flow out of the citizenry, they simply turn off the credit spigot to seize the same assets they funded, for pennies. Those assets were held by people, then swing over to smaller banks, will then roll up into larger banks, which eventually roll over to the Federal Reserve. The Fed collects the assets using $2 BSC buyouts and 75 cent F&F deals, then exports all of that value (which again, is unchanged) to their mostly foreign, private shareholders.

It is the oldest trick in the central bank playbook, it is why we have a central bank, and it has been documented over, and over, and over, and over, and over again, for at least the past 2000 years. It is a matter of fact that a certain central figure in the Bible was crucified for taking action against it.

F DRAllOverAgain

It intrigues me how visitors to the pages of these mainstream journals frequently discuss the heart of the problem while the journals never do.

Knew this was coming. I think they should let them all fail. It was bad banking practices that lead to this, and it shouldn't be allowed to continue.

It should have been fixed after the Great Depression and fractional banking should have been thrown out to the sea with the FR as an anchor.



[edit on 14-9-2008 by badmedia]

This whole credit crisis is just a complete mess. Also, for all the free market believers, do you still stand by the belief the private markets should not be regulated?

Sidebar -
Rumor is BofA is buying Merrill Lynch probably tomorrow. I thought BofA was so big that they would not be able to do any more large acquisitions. Has the government dropped this policy too?

Are we building another bank that is to large to fail? When will we ever learn!

Wall Street is in bad need of a B!tch slapping - for last few years objective
has been to "do the deal" regardless of if it made economic sense.

We have seen the sub prime mess blow up ear Stearns , now commercial
real estate dragging down Lehman.

Doesn't anyone there do a risk assessment on the deal - or is the culture
so geared to "deals" that no matter how stupid the deal must be done
so brokers get their commisions?

Two good reads.....

www.theinternationalforecaster.com...


www.globaleconomicanalysis.blogspot.com...

"High Stakes Poker Update: Cinderella, Merrill Side Bets "

The blog comments are the best part.

reply to post by mythatsabigprobe


GOOD CALL.

HERE on ATS, the same was said on different threads, amazingly

predicting a meltdown in mid-September.

I was hoping - really hoping - that since the beijing olympics had

successfullly come to pass, that john titor's future timelines for us

were way off probability wise. A short conversation with 'Pam' from

the original titor thread even gave me hope.

Now i am not so sure - again.

Barclays walks out on Lehman talks

Lehman bidders are withdrawing.
Yes, Merril could be next. After Bear, Fannie, Freddie, Lehman, the whole gang except Goldman.
Yes, Asians are coming.
No, I don't have any problem with them coming. Half of america has been slacking off. America will need their money.
Time for america to pay her debt.
Time to reshuffle the world wealth distribution.

Something that I haven't seen mentioned here is that Lehman Brothers is one of the shareholders in the Federal Reserve. How that has failed to be mentioned is pretty surprising. I think the most shocking aspect of this debacle is the fact that one of their own isn't immune to complete collapse. If one of the banks in charge of the money is going to go, that should provide an even greater shock to this farce of an economic system.

Originally posted by AtlantaInsider1
This whole credit crisis is just a complete mess. Also, for all the free market believers, do you still stand by the belief the private markets should not be regulated?

100%. This is a GOOD thing to be happening. Bad businesses should not be allowed to go on.

It seems to me that regulations more often than not legalize practices that would otherwise not be allowed. Fractional banking is a regulation. It is regulated how much more money you can loan out than you actually have. This market is completely regulated now.

Just like pollution. Regulations on pollution legalize a certain amount of pollution. When it should be a crime to pollute period(I realize the economic impacts and wouldn't expect it to happen overnight, save the debate).

You have to remember who really presses for these regulations and gets things done.

Originally posted by BennyHill
Something that I haven't seen mentioned here is that Lehman Brothers is one of the shareholders in the Federal Reserve. How that has failed to be mentioned is pretty surprising. I think the most shocking aspect of this debacle is the fact that one of their own isn't immune to complete collapse. If one of the banks in charge of the money is going to go, that should provide an even greater shock to this farce of an economic system.

Thats a good point and yes I have thought of it. At the end of the day it may be as easy as taking one for the team. Think about it all of the assets arent going to just go away. The power consolidation is going to continue and all of the assets will be bought for pennies on the dollar by FED backed banks. So they still will get their share and make a mint.

FYI:
Consider that US banks usually carry federal deposit insurance.
FDIC.gov:
"The basic insurance amount is $100,000 per depositor, per insured bank. This includes principal and accrued interest up to a total of $100,000. The $100,000 amount applies to all depositors of an insured bank except for owners of certain retirement accounts, which are insured up to $250,000 per owner, per insured bank."
The FDIC fund is tapped as banks fail. Everyone should already have known the insurance limits above, but much of the public (even those with greater than $100K deposits) probably don't.
So, while yes banks with reckless practices deserve to be attritted, they will tap the FDIC insurance fund. So even if your assets were distributed across US banks in not greater than $100K parcels, you could find that the insuring system may have insufficient funds to back latter-failing banks. That's why it has been important to find buyers or orchestrate bailouts rather than allow wholesale failures. Would welcome a knowlegeable individual's assessment of the adequacy of the insurance funds and how to avoid printing money to maintain liquidity.
-- Anonymou$

Originally posted by AtlantaInsider1
This whole credit crisis is just a complete mess. Also, for all the free market believers, do you still stand by the belief the private markets should not be regulated?

Sidebar -
Rumor is BofA is buying Merrill Lynch probably tomorrow. I thought BofA was so big that they would not be able to do any more large acquisitions. Has the government dropped this policy too?

Are we building another bank that is to large to fail? When will we ever learn!

Yes. Don't confuse what is happening now with "free markets" please. The Federal Reserve created this credit expansion, Fannie and Freddie where created by FDR's administration in the 30's, it was a government entity from the start. Fed bailouts, stimulus checks. You think this is a free market? This the worst run, most regulated, government sponsered mess ever created. You really think the FED can set rates as low as they did from 92' on up to today and the dollar will maintain it's value? You think rates can go as low as they are for that long and not create massive credit expansions? That was not the Free market, in fact that is about as far from a free market as you can possibly get.

reply to post by aravoth


And with the derivative soaked financial markets, a Lehman collapse can start a nasty chain reaction.

These people have ruined the economy but I bet they will be just fine while most of us suffer through their mess.

I'm watching the news and it seems that Lehman Brothers had already filed for chapter 11 bankruptcy.

I've read in some posts that someone owns Lehman. Who might that be? Merril?

It looks like some crazy *stuff* is going to hit the fan tomorrow.
Over in Asia the "BSE 30" is down 730pts at the time of this posting. And the Dow Futures down 320pts.

Europe is feeling this too:

LONDON, Sept 15 (Reuters) - European stock index futures tumbled on Monday as Wall Street firm Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) (LHMH.F: Quote, Profile, Research, Stock Buzz) filed for bankruptcy protection, fuelling more fears over the struggling financial sector.

At 0605 GMT, futures for the DJ Euro Stoxx 50 STXEc1 slipped 3.5 percent, Germany's DAX futures FDXc1 were down 3.3 percent and French CAC 40 FCEc1 futures fell 3.4 percent. (Reporting by Atul Prakash)
Source

Sunday Bloody Sunday? Watch this video from cnn which will air tomorrow with possibly dire news for wallstreet.

money.cnn.com...

Tomorrow will be an exhaustive day in the stockmarkets. We knew that it was going to get rough prior to the elections, lets just hope it is not going to be the death of our USD.

, check this out
cgi.ebay.com...

Lehman On E-bay!

Look at the comments, hahahah, I love this one.

Q: Hello Lehman Brothers, I was wondering, I just received $25,000,000,000.00 of the U.S. Taxpayer's money via the FEDERAL Government to do an INDIRECT BAILOUT... Shsssh! Is this BAILOUT OFFER PRICE Acceptable, since I know the U.S. Greenback is becoming worthless to Americans and the World? Thanx, Ron Paul Sep-14-08

A: Ron, We appreciate your offer, but this is only offered to idiots at the moment



[edit on 15-9-2008 by aravoth]

reply to post by aravoth


That is pretty funny!!!!!!!!
I've been reading the question/answer portion.....Hilarious!

Q: Has the State of Alaska made any offers on the item yet? Sep-14-08
A: it has been earmarked

Q: Can you take Visa or do you prefer paypal? Sep-14-08
A: priceless..

Q: I'm ready to bid, can I look at the books first? How many sets of books are there? Sep-14-08
A: there is one set of books you snide buyer. However books are for losers

Q: Will I have more houses than McCain if I win this bid? Sep-14-08
A: more houses, more wives, more votes, more fun, more zeal, more Palins

[edit on 9/15/2008 by justme2]

[edit on 9/15/2008 by justme2]