Will the Stock Market Collapse Tomorrow?
Today has been perhaps the most eventful day in Wall Street history since October 29, 1929. And tomorrow may top it. In a literal barrage of horrible news, it has been announced over the last few hours that Lehman Brothers will file for bankruptcy, and by all accounts, will be liquidated; and Merrill Lynch will be purchased by Bank of America for $44 Billion. And thus, in a span of 24 hours, two of Wall Street’s most storied investment banks will disappear. In the next week, it appears that Washington Mutual and AIG will also fail.
Meanwhile, Alan Greenspan, whose sneezes causes the Dow to drop 100 points, said today that the current financial crisis is the worse he has seen in his lifetime, and that the US is most assuredly heading into a deep recession. Further, Mr. Greenspan said that McCain’s tax plan would devastate the economy.
And these GOP thugs want to run the country for another 4 years? What, they want all the banks to fail so we really can experience 1929 all over again?
Maybe this is all an excuse to start WWIII to stimulate the economy…
Whiner. Its all psychological. The economy is sound. I just asked Sarah again.
LOL. Soon, your money will be psychological too.
Dow Futures are pointing down 279 (was 300 earlier)…
It SHOULD be a mess, but lately it seems like they will make good news out of anything.
I am just thrilled that we are not bailing these bastards out though… it is good to see the market have to sort itself out…
I think trading shuts down if it drops too much.
I looked it up. Trading pauses if the market drops 2.5%, 5% and 10%. Right now Dow futures are down 300 points, a little less than 3%. I think the actions of the Fed are working to calm the markets a bit.
There is still discussion of a type of bailout — having the government just buy all of these mortgage securities that are weighing everyone down (from DD’s link to the NYT above):
“What we need now is a systemic solution and to admit that this is an extraordinary situation,” Mr. Meyer said. He said the government should go to the heart of the crisis — the mortgage market — and start buying mortgage-backed securities in a broad rescue.
I’m not in favor of this, but would bet that some form of this is on the horizon.
I hope it is not the route they go. If they bail out the bad banks it encourages bad behavior. It also punishes the companies who manage their risk and steals money from taxpayers to fund the big mistakes.
Lehman had a lot of time to figre out their capital. Lehman was not taking deals because the shareholders did not want the stock diluted any further – they get nothing now. WaMu is headed down the same path. The government not stepping in will make weak institutions get real about figuring it out… which will make the crisis end sooner.
I think Merrill’s board realized that and sold before they were distressed and were creating the same scenario for their bank.
Futures are down 340 and dropping…
They can try and stop the looming crash electronically-but like the engineer on the Metrolink taught us-technology is capable of only one thing-distraction from reality.This distraction causes many different types of disasters.The time has come for us to get off the phones and gadgets and subprime scam “products”and snap back into REALITY.Back to basics is where we are going to be very soon-whether we like it or not.Sleep tight!
Where is a good old Jason post blasting Mike Castle for refusing to open his yap on the House Finance Committee for all these years of deregulation of this industry and the heavy toll the hedgers have taken on all the markets.
Oh, that’s right. Jason isn’t posting any more.
Where is a good old Jason post blasting Mike Castle for refusing to open his yap on the House Finance Committee
Gee I guess it’s up to KHN now.
I think it’s going to be a bloodbath for the next few days. There are rumors about AIG as well.
Talk about bad timing – one of McCain’s economic advisors, Donald Luskin (the Stupidest Man Alive) published and op-ed today called “Quit Doling Out that Bad-Economy Line.” Thanks for reminding us that the recession is all in our heads.
http://www.washingtonpost.com/wp-dyn/content/article/2008/09/12/AR2008091202415.html
What is going on with the banks and the mortgage crisis has nothing do with Republican or Democrat. It has everything to do with the Federal Reserve allowing banks and lender to sell mortgage loans to everyone under the sun, regardless of their ability to pay or not.
Former Fed Reserve Chairman Alan Greenspan allowed this happen. He knew questionable mortgage loans were being sold and to whom. He did not tighten the reins, and stop it.
WaMu will most likely be acquired by JP Morgan Chase. They were in talks on Friday, as reported on the news wires.
One final questions, where were our elected leaders in Congress on both sides while this was happening? This is a bi-partisan issue, and both sides are to blame.
What is going on with the banks and the mortgage crisis has nothing do with Republican or Democrat. It has everything to do with the Federal Reserve…This is a bi-partisan issue, and both sides are to blame.
Load of crap. Economic policy has been dictated by Republicans for the whole decade. Now man up and take responsibility.
Nothing to do with repubs and Democrats? Remember Enron? Remember the Savings and Loan Crisis? These things always happen under repub administrations. It has everything to do with gov’t by repubs, lax regulations, and massive welfare (bailouts) for the rich while the middle class gets screwed.
In this particular case, it has everything to do with banks and mortgage lenders making fraudulent, unsupportable or undocumented loans while the the Bush politicized Justice Department looked the other way. Again, another absolute failure to defend this country.
This is the repub whining mantra now: “Both sides are to blame”. No, your side is to blame – you were in charge and you own it, but of course, in typical repub fashion, you can’t take responsibility for any of your actions.
And don’t forget – if McSame and the repubs had their way, they would be doing this with social security.
Actually, yeah anony. It is up to KHN and up to us to put as much of a majority of Democrats into Congress as possible, and not Carper-GOPer liters either.
The new team in the White House needs to be given the necessary support on the Hill.
I hope that Liz Allen keeps her yap shut and that the voters ask a lot of questions and listen to KHN so she can win the vote.
anonone
“Nothing to do with repubs and Democrats? Remember Enron? Remember the Savings and Loan Crisis? These things always happen under repub administrations. “
Soon we’ll be adding, “remember that 401k you used to own”
KHN is certainly keeping her powder dry.
Paulson borrowing billions from the Japanese. They are trying to hold the economy together with McCain “stating its strong”, while the house of cards is falling around them. We are owe our souls (not to the company store) but to China and Japan. If they call the debt, America is bankrupt.
Lehman Brothers are deep inside Delaware just as Enron was, where is Castle? He voted against regulation’s that would have kept corporate american in check.
17 anonone // Sep 15, 2008 at 6:52 am
“Nothing to do with repubs and Democrats? Remember Enron? Remember the Savings and Loan Crisis? These things always happen under repub administrations. It has everything to do with gov’t by repubs, lax regulations, and massive welfare (bailouts) for the rich while the middle class gets screwed.”
Enron collapsed in 2001. If I recall correctly, Bill Clinton was in the Whitehouse from 1993 to 2001. With Dem’s in the presidency for the 8 years prior to the downfall of Enron, you would be hard pressed to argue that it was the fault of Rep’s. If the democrats do what they are supposed to in the office, it wouldn’t collapse after they leave. It’s all smoke and mirrors and rhetoric. When they leave, the truth comes out.
history will repeat itself,,, another war is coming,, may God have mercy
human is too greedy no matter how much he have he must take from his brother,, and this will be the reason of his Extension..
OK Dems… please explain this:
http://www.workforce.com/section/00/article/25/83/58.php
Tell us all that this is NOT SOCIALISM? It is.