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

I haven't read this entire thread yet, but wanted to give some input.

Bank of America acquired Countrywide a little while ago and now acquired Merrill Lynch. Many shaking their heads since Bank of America hasn't been immune to the fallout from the mortgage debacle, like all the other banks. I've heard a couple of market strategists/investors mention that BofA has been doing this to ensure their federal bailout when their time comes; in other words, the government will bail them out if BofA is deemed "too big to fail" (ie Bear Stearns) and now with their acquisition of Merrill, that status may be assured.

Also, the "Fed" mentioned that they may slash their "bailout" rate again as soon as next week - as if that's going to help anyone (except themselves and top bank mgmt).

Please forgive me if anyone already mentioned this tidbit of info here

reply to post by AtlantisAgain


Bank of America was not involved on loans and the mortgage business that is why they were spared the housing bubble crash but they have links when it comes to hedge funds.

So they have capital to invest or buy into the failing financial institutions but they will not be spared the burden of taking their loses.

Bank of America is thinking about the future and with hopes that the mortgage market will bounce back, but if the situation doesn't change they will be facing financial problems in the future.

Originally posted by aravoth
reply to post by TruthWithin

 

I figured you couldn't, looks like you can't read a paragraph either. I said 2% avg over 2 decades, and you pull out a chart showing prime rate cuts over a period of 1 year.

Wow, you really got me there.

When has there ever been a 2% average over 2 decades? That's ridiculous! If that is what you meant then it is crystal clear that it is YOU that doesn't know what they are talking about.

My chart shows a 2 and 1/2 years BTW and I still have ZERO clue what you chart says (you can't read the data).

It's ok to admit you're wrong.

You still haven't shown me any legislation that the DEMS have pushed through without a filibuster or a veto....

[edit on 15-9-2008 by TruthWithin]

Isn't it just crazy how a big company can just piss away its customers money and get a slap on the wrist and told bad judgement now go to forclosure and dont come out till you pay your debt off and when you have stolen enough money we'll let you come back and play the banking game again.....

BofA has a really big credit card base. They bought MBNA a while back too. The issue there is credit cards may not yet have hit the default rate that the mortgage industry had but may soon do that. BofA is not immune to further trouble. Remember too that BofA bought Merrill Lynch in a stock deal based on their current health.

Watch the consumer credit industry, that's a big problem that has been somewhat silent compared to the rest of the global credit crisis.

The graphs on this page are quite scary.

en.wikipedia.org...

reply to post by mybigunit


Sure, but this isn't a "recent" crisis. People have been screaming about this Since Greenspan started throwing money out the windows. Everyone expects things to fall apart instantly, but it just doesn't work that way. Especially in the financial world. It would be more accurate to say that every administration lives in a world created by the prior administration. Or even more accurate, every administration has to live with the consequences of what the Central Bank does.

We had amazing growth during the Clinton era, and not because of congress, not because of the president. It was because of Alan Greenspan. But growth comes with a price, and when it was Bernake's time to take the helm, he should have raised the rate and protected the dollar. But he did the opposite, and continued doing what Greenspan had done in the 90's. Compounding the problem and delaying the inevitable correction.

What pisses me off to no end is that people honestly believe that the free market caused this. They have no idea what a free market is. They've never lived in one. They see a president and think "oh he must be the guy who did it!". Presidents don't make jobs, they don't build cars, they don't control the money supply, they don't sell products, they don't run investment banks. The only thing they do is approve congressional bills, budgets and bailouts. Doesn't matter if congress right now has a democratic majority. It doesn't matter at all actually. The democratic congress has gotten plenty of things done. The president asked for 160 billion for the war, democrats gave them 180 billion. Banks need a bailout? Democrat written, Republican approved. Want some "free money"? Republicans wanted 1000 bucks for a family of three, Democrats gave the 1500.

This political party system is stupid as hell. And rather than look at numbers, which would tell you exactly, without bias, what is going on, people look to pundits, and politicians. And they'll blame everything but the root cause of the problem.

reply to post by Ketzer22
here is what I found last year...basic and does the job.

marketrac.nyse.com...

reply to post by TruthWithin


How about when they funded the war? I think Pelosi said it was a good compromise.

Or how about the Stimulus Package?

How about increasing the line of credit to the treasury? (speaking of the credit crisis).

reply to post by marg6043


Marg,

With all due respect, this meltdown has been going on for significantly longer than a year.

In fact, in another thread here on ATS, i posted this article from China Daily, which is so incredibly intuitive mostly because of the date of it, October 2005

The US is now clearly in huge trouble, economically, socially, politically, and internationally. The Bush Administration bungled big in cyclone Katrina's aftermath in New Orleans, and then a minor rerun from Rita in Houston, and this will trigger the general outburst of people's dissatisfaction with the government, leading to great internal turmoil lasting for many years. In all likelihood, long-term interest rates are going to rise, and the greatest property bubble the world has witnessed is going to burst in the next one to two years.

Like I had said in that other thread, this is something we all should never have missed, but did.... other's knew, why didn't we?


AB1


Edit to add link to Article

[edit on 15-9-2008 by alphabetaone]

reply to post by infinite


This is phase (1) of a one world financial system. Call it 666, Buildahburgers, illuminati, skull & Bones or what ever world controlling succubus you want.

As the smokescreen clears... the folks who relected Bush are loosing their homes, pants, savings and soon their minds. Maybe this was the master plan all along?? Brinkism and trillions of taxed dollars being syphoned to give our Goverment baseball bats to hit us over the head.

It also seems MSM only activates itself to challenge the real culprits when their own investment portfolio's are poofed into thin air.

McCain and the Red elephants don't look so good now do they?

Originally posted by alphabetaone
Like I had said in that other thread, this is something we all should never have missed, but did.... other's knew, why didn't we?

They knew. They took advantage of it. Can you name any poor politicians?

reply to post by aravoth


I know man and I dont disagree. Listen this is why the FED has to be eliminated. There is no free market until you get rid of people controlling the money and essentially the economy. It will never happen though so alls you and I can do is dream.

reply to post by Maxmars


Hi Max...

This I know, I meant us, the little people, why didnt WE see it, hell the politicians knew? Sheesh, they fomented it....I could care less what they knew/know/dont know to be perfectly honest ya know?


AB1

reply to post by alphabetaone


Yeah, after I wrote that it occurred to me I had misunderstood.

Well, I have to admit, it's almost inconceivable that such an effort (to literally destroy a nation's economy for profit) would ever be undertaken, let alone be allowed.

But then I remembered the nature of elitism and nobility, those to whom all the wealth is being driven honestly believe they deserve it more than the people who's labor it represents.

reply to post by Maxmars


Absolutely, it's amazing isn't it?

I mean, seriously how many of the 'laborers' retirements, life, in fat their PRIDE is being flushed down the toilets, simply because those who do control such an enormity of wealth and foster it's misappropriation for their own gain truly believe that THEY are deserving?

To me it staggers the mind...but honestly, in defense of them if someone actually HAS to defend them, we are truly to blame for allowing them to control us.


AB1

This news today from those at Project Camelot:

Last night we received this e-mail from George Green projectcamelot.org...:

I'll call you. Things are really coming. The meeting today on the government assisting the sale of Lehman to Barclays fell through... the dollar is close to collapse.

George Green is a retired investment banker and a businessman with many contacts in high places.

As we have heard many times before, the American economy has been the host for the parasite known as the Federal Reserve banking system since 1913. In fact we are now seeing the entire world has hosted the Fed entity in one way or another. So, the tentacles run deep and are global. It has also been mentioned we may be in the processes of transitioning to a metal based treasury system. We know this transition may not be an easy one.

Alan Greenspan has referred to the financial crisis we are passing through as a 'once in a century' event johnibiii.wordpress.com... .
Does this indicate it is a carefully planned event?

reply to post by alphabetaone


Yes you are right the meltdown started many years ago. I was referring to the events that has brought up the financial institutions trouble times to the public eyes, this started last summer, that is when the American public started to see that something was not right.

But I agree you are right on that statement.

Dow is heading for a close on a near -450 drop.

S&P lost 4%.

The fear over AIG has spooked the market and the insurance could be the next victim. An official from AIG said they have till Wednesday to sort the situation out and the Fed may have to nationalise this business.

Make that -504 for Dow. It just keeps sinking!

This has all been unfolding for quite some time now. We know this yes.

The Federal Reserve, The Ilumanati, The Bilderberg group = NWO, Its ALL a mind game. And their behind it ALL...

LMAO. How many citizens are actually aware that THEIRS NOTHING FEDERAL about the Federal Reserve.

This is interesting

[yvid]http://www.youtube.com/watch?v=w4wv2_0qXhE&feature=user

[edit on 15-9-2008 by Bazarocka]