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Wall Street on Red Alert

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posted on Sep, 15 2008 @ 09:32 AM
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Wall Street on Red Alert


money.cnn.com

NEW YORK (CNNMoney.com) -- After enduring one of the most dramatic days in its history, Wall Street received a climactic jolt on Monday when Lehman Brothers, a 158-year-old investment bank undermined by bad bets on real estate, said it will file for bankruptcy.

(visit the link for the full news article)




posted on Sep, 15 2008 @ 09:32 AM
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The fall of Lehman followed a wild, three-day scramble by top Wall Street executives and federal regulators who worked around the clock to come up with a solution to a still-unfolding financial crisis.



money.cnn.com
(visit the link for the full news article)



posted on Sep, 15 2008 @ 09:50 AM
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I think more deregulation and the free market hold all the answers for this bump in the road. Maybe we can get rid of the SEC and give another tax cut. That should do it!!



posted on Sep, 15 2008 @ 09:53 AM
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Are the people going to bail these banks out with our taxes?



posted on Sep, 15 2008 @ 10:06 AM
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The Fed will not bankroll Lehman which is why they are forced to file a petition for re-organisation. They should have just thrown in the towel, but the hubris that runs these companies allows them to think they will be able to adjust their losses and stay in business. They are a dead man walking, we'll see more in October.

I wonder how BofA is doing after having to digest Merrill and Countrywide (whose lossses have yet to really come home).



posted on Sep, 15 2008 @ 04:05 PM
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[B]-- CNN BREAKING NEWS[/B] - Dow ends nearly 500 points lower -- its worst point drop in more than seven years -- as bank woes scare investors.


In history, Tuesday is always worse than Monday...



posted on Sep, 15 2008 @ 04:16 PM
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Here is the AP release from 7 hours ago...



NEW YORK (AP) — Stocks tumbled and Treasury bond prices soared Monday as investors reacted to a stunning reshaping of the landscape of Wall Street that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co. The Dow Jones industrial average fell more than 330 points.
ap.google.com...

Now, economics was never my strong point. My question is this...How bad can it get and what will be the real world consequences?



posted on Sep, 15 2008 @ 04:25 PM
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reply to post by MemoryShock
 


How bad CAN it get?
Total economic crash basically.

How bad WILL it get?
We can't know that until this is all over with.

What are the world implications?
The US economy, like most economies, is tied directly into the world economy.
If the worst case scenario occurs and the US economy crashes completely, other nations will also enter a series of events that will either crash their economies, or enter them into a recession.

There are some companies worldwide that might benefit from their rivals in the states being no longer functional, but they will be so few and far between that it won't really help those nations economies. (Mostly because their existence is based on their ability to supply areas that American companies could not. Hence, they won't gain much ground anyhow, because they too won't be able to feasibly supply the areas the American companies used to.)

We saw the dumping of US currency around the globe not too long ago. Especially by China. This was done because they could see the crisis coming. By dumping US currency, they broke many ties with the US economy that might have hurt them in desperate times.
Unfortunately, there is still the supply and demand link between them and the US, which will still hurt them.

Basically, worst of the worst case scenarios, the world economy fails.

But I seriously doubt we will see anything of the sort. That would require some serious negligence from federal governments and reserves everywhere.



posted on Sep, 15 2008 @ 04:27 PM
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how about taking back all the bonus's from the people who got us into this miss first..



posted on Sep, 15 2008 @ 04:28 PM
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Originally posted by '___'eed


Are the people going to bail these banks out with our taxes?


No, because that would put the government credit rating at risk, the government is probably done saving, now it's all up to the Fed



posted on Sep, 15 2008 @ 04:28 PM
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I bet it's a political trick!!!



posted on Sep, 15 2008 @ 04:28 PM
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reply to post by MemoryShock
 


If AIG fails, according to Jim Cramer, it's doomsday on Wall Street. In an interview on CNBC today he was adamant that AIG should be saved by the federal government because nobody knows what assests and liabilities they own. He said if AIG fails that would surely start a run on the banks.

briansullivan.blogs.foxbusiness.com...

[edit on 15-9-2008 by Tuebor]



posted on Sep, 15 2008 @ 04:45 PM
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reply to post by Tuebor
 


I pondered briefly the idea of AIG taking all it's assets and transferring them directly to another currency... but that idea was short lived, that would certainly crash the US economy.

Now that Lehman is declaring bankruptcy, the damage gets re-distributed through the economy via the fed... I can't see a way AIG can come out of this alive... can you?

Anyone have any strategy ideas to ensure the other financial giants don't get cut down?

I've heard allot of, lets blame this guy... the usual, burn the witch replies... but does anyone have any feasible ideas to save these companies?

... outside of inventing a new currency?



posted on Sep, 15 2008 @ 04:52 PM
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Originally posted by johnsky
reply to post by Tuebor
 


I pondered briefly the idea of AIG taking all it's assets and transferring them directly to another currency... but that idea was short lived, that would certainly crash the US economy.

Now that Lehman is declaring bankruptcy, the damage gets re-distributed through the economy via the fed... I can't see a way AIG can come out of this alive... can you?

Anyone have any strategy ideas to ensure the other financial giants don't get cut down?

I've heard allot of, lets blame this guy... the usual, burn the witch replies... but does anyone have any feasible ideas to save these companies?

... outside of inventing a new currency?


This theory of a new currency saving the industry is bunk, the currency has no barring on the current banking crisis, this is global, it's happening in Europe too. Even the Chinese have cut interest rates...this is global.



posted on Sep, 15 2008 @ 05:06 PM
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We shall soon see, the next few months should be interesting.



posted on Sep, 15 2008 @ 05:06 PM
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That would be why I said "Outside of inventing a new currency." Cause I know that would do nothing.

I was loosely referencing the governments idea to create the Amero, knowing they would try to use this as justification for it's birth, while pointing out that it would do nothing...

So basically, I agree with you.


Sorry if it sounded like I was implying it might help.



posted on Sep, 15 2008 @ 05:16 PM
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I dont see how they are important.

It was stated on the Radio News a couple weeks back that the IRS has said that many big businesses wait several years to pay their taxes. I would not be surprised if lehman was one of them and that lehman is going to get away with not paying millions of taxes that they owed.

Big company's are half of the reason the U.S. is in Decline.

Sure sure, the U.S. mints money... okay but its backed by only so much

If you have large industrys keeping billions upon billions (bill gates is trillions) The money isn't in circulation?!?! Seriously would you think about that? Then America has sent trillions over in Iraq and Iran and Afghanistan and some in Africa etc... That money is not coming back. The U.S. supported these countries because they needed backing... When we need it... nobody will come to the rescue. Americans are going to have to do what they are best at. Working their butts off for a country and getting it back and flowing again, but this time I hope we pick better administrations and make sure that the people we select can be spyed on so that they dont become corrupt. Because just like it does good to have parents watching out over kids... it keeps them in the right... having the authority over those who have authority... it would keep them in line... Until someone tries to break the system... again

edit to add:

Do not bother trying to debunk my claims that the U.S. Was supporting these countries, there is evidence that supports it... There is also evidence that the U.S. had its own agenda for supporting them such as oil etc. But they do not want to give the U.S. any... Im sorry but I think giving a country over 40 billions dollars and then exspecting an alliance such as oil trade... is appropriate.

[edit on 15-9-2008 by rjmelter]



posted on Sep, 15 2008 @ 05:19 PM
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Originally posted by johnsky
That would be why I said "Outside of inventing a new currency." Cause I know that would do nothing.

I was loosely referencing the governments idea to create the Amero, knowing they would try to use this as justification for it's birth, while pointing out that it would do nothing...

So basically, I agree with you.


Sorry if it sounded like I was implying it might help.


Yeah, I misunderstood you, I'm not a believer that the Amero will ever happen, it would be way too hard to deal with inflation and growth on a continental scale, Europe is having enough trouble with the ECB's high rates as it is.

[edit on 15-9-2008 by yellowcard]



posted on Sep, 15 2008 @ 05:19 PM
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www.npr.org...

The Paulson is downplaying this pretty hard. Despite the fact that he came out and said the same damned thing when Bear Stearns crashed.



posted on Sep, 15 2008 @ 05:24 PM
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Originally posted by Tuebor
reply to post by MemoryShock
 


If AIG fails, according to Jim Cramer, it's doomsday on Wall Street. In an interview on CNBC today he was adamant that AIG should be saved by the federal government because nobody knows what assests and liabilities they own. He said if AIG fails that would surely start a run on the banks.


IMO the investors should take the losses, not the government. They own it. The FDIC insures depositors up to $100k, and they should be compensated by the government. If, after all that, the government still has the money, maybe....

[edit on 15-9-2008 by Sestias]




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