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

reply to post by mybigunit


I've been thinking the same thing, but honestly I don't think I've got the stomach for financial stocks anymore. Maybe when the dust settles...

Bank of America is now in talks with Merril Lynch about a merger or takeover, and AIG is getting set to make an announcement abut a possible asset sale... time to get the popcorn..

CNBC
AIG [AIG 12.14 -5.41 (-30.83%) ] executives have been meeting throughout the weekend with financial advisors, potential liquidity providers and potential purchasers of the firm's assets.

AIG's stock dropped 25 percent on Friday on concerns it will have trouble raising the capital it needs to cover potential losses and to prevent the ratings agencies from cutting its credit rating.

[edit on 9/14/2008 by mythatsabigprobe]

Billions in private profits, and when their schemes fall apart they want more billions from We The People to bail them out.

Is it time for the torches and pitchforks?

[edit on 14-9-2008 by TaZCoN]

Dude I want to see an all out tanking tomorrow. Im talking Dow down over 1k. I want to go bargain hunting on all fronts tomorrow. Ive been holding back for a long time now and I thought I was gonna get it with BSC, then Indy, then Fannie and Freddie, so damnit I better get it on this one. Yes get the popcorn. I have it on bloomberg now.

reply to post by mythatsabigprobe


Australia opens up at 11pm GMT, Japan an hour later.
If a deal is not sorted by 12pm GMT (nearly two hours) then panic will probably hit the markets.

The end result of the global economic slowdown may be the U.S. announcing national bankruptcy as the government cannot afford the bailouts that it promised and the market will not bail out the government, Martin Hennecke, senior manager of private clients at Tyche, told CNBC on Thursday.

"We expect a depression in the United States. We expect a depression, very possibly, also in Europe," Hennecke said on "Worldwide Exchange."

The estimated $300 billion cost of the Fannie/Freddie bailout will probably be considered as a loss that the government will have to take, therefore passing it on to taxpayers, he explained.

"We already have $3 trillion of debt, as far as the U.S. government is concerned. These debt figures across the U.S. economy are rising very sharply."

When the government can no longer pass the United States' "immense debt" on to taxpayers, it will turn to the holders of U.S. dollars, leading to the eventual downfall of the currency, Hennecke said.

"Definitely, it (the dollar) is not a safe place to be invested in, as real inflation is closer to 10 or 11 percent than the actual inflation numbers given by the U.S. government," Hennecke said on "Worldwide Exchange".

reply to post by mybigunit


I've been doing the same for the last two months but I think this could kill almost every big financial firm and take little old me along with it... Any advice on safe buys?

Originally posted by mythatsabigprobeAny advice on safe buys?

Mountain House freeze dried food, lots of it (the actual food, not the stock.)
Stored water.
Ammunition.

Originally posted by mythatsabigprobe
reply to post by mybigunit

 

I've been doing the same for the last two months but I think this could kill almost every big financial firm and take little old me along with it... Any advice on safe buys?

Hehe I cant give any sorry, not that I dont want to its I cant because I can get in trouble....I already have once.

Yeah, I hear ya bigunit. I think the freeze dried food and ammo might be a better use for my money anyway...

Originally posted by Pentothal
"We expect a depression in the United States. We expect a depression, very possibly, also in Europe," Hennecke said on "Worldwide Exchange."

As I said at the start of this crisis, the European Union will become more united after this and more countries will end up in the Euro. You will not see a depression in Europe - EU rules are strict on fiscal policy.

This crisis has brought out the economic weakness in America; Fannie and Freddie were bailed out after foreign investors and central banks demanded protection of their assets (I.O.U's)

Originally posted by infinite

Originally posted by Pentothal
"We expect a depression in the United States. We expect a depression, very possibly, also in Europe," Hennecke said on "Worldwide Exchange."

As I said at the start of this crisis, the European Union will become more united after this and more countries will end up in the Euro. You will not see a depression in Europe - EU rules are strict on fiscal policy.

This crisis has brought out the economic weakness in America; Fannie and Freddie were bailed out after foreign investors and central banks demanded protection of their assets (I.O.U's)

Try telling that to government shills who think that we are not even in a recession and that this is all a liberal conspiracy

www.abovetopsecret.com...

Its disgusting. Some people will be sheeple up until the very end.

reply to post by Pentothal


"The estimated $300 billion cost of the Fannie/Freddie bailout will probably be considered as a loss that the government will have to take, therefore passing it on to taxpayers, he explained"


You think it will only cost in the billions? Here is something from The American Thinker to read.

www.americanthinker.com...

We could be talking in the trillions of dollars folks, money the tax payer does not have.



[edit on 14-9-2008 by FiatLux]

Let's see how Wall Street likes being downsized.

Part of the fear gripping Wall Street is the “who’s next” game. After the collapse of Bear Stearns it was Lehman. After Lehman, many worry Merrill might be next.

Thousands of employees at Lehman are likely to be laid off, casting them into one of the worst Wall Street job markets in years. Other banks are cutting back, too.

Even employees who manage to hold on are likely to make a lot less money this year. Bonuses are not only going to decrease; for many, they will evaporate completely.

www.nytimes.com...

[edit on 14-9-2008 by In nothing we trust]

reply to post by infinite


Please elaborate. I am no so clear on the situation.. If panic hits the market what do you expect to happen? Do you mean 12am GMT ? In twenty minutes?

No to worry just like the way that all this financial institutions are doing is just making easier for foreign investors to dig into them.

Now because the way the economy is going in the US many Asian and Chinese investment firms are buying cheap.

Temasek Holdings Pte from Singapore and South Korea's Korea Investment Corp. got each a piece of Merrill Lynch & Co.

Government of Singapore Investments Corp already got UBS AG and Citigroup Inc.

China Investment Corp.got a piece of Blackstone Group LP and Morgan Stanley.

And rumors are that Asia is also waiting to get now a piece of Lehamn Brothers.

Meet the new faces of acquisitions of the US financial institutions by foreigners.



[edit on 14-9-2008 by marg6043]

I think the decision has been made.

Lehman Brothers to File for Bankruptcy Protection, NY Times Says

By Colin Keatinge

Sept. 14 (Bloomberg) -- Lehman Brothers Holdings Inc. will file for bankruptcy protection tonight, the New York Times reported on its DealBook blog, citing unidentified people briefed on the matter.

Lehman will aim to put its parent company into bankruptcy protection, while its subsidiaries will remain solvent as the firm liquidates its holdings, the Times said, citing the people.

A grouping of banks will offer a financial backstop to assist with orderly winding down of the bank, the newspaper said.

Last Updated: September 14, 2008 18:12 EDT

dealbook.blogs.nytimes.com...

The aftermath, we shall see tomorrow.

BLOOMBERG JUST STATED THAT THE BANKRUPTCY WILL HAPPEN TONIGHT.

THIS WAS 00:05 GMT

Futures plummet amidst panic.

NEW YORK (Reuters) - Stock index futures tumbled on Sunday, pointing to a sharply lower open on Monday amid widespread uncertainty about the health of U.S. financial sector with the fate of Lehman Brothers still unclear.

The ruptured U.S. financial system was facing an unprecedented shake-up on Sunday that could lead to the failure of Lehman Brothers, the takeover of Merrill Lynch & Co Inc. and huge asset sales by American International Group.

S&P 500 futures fell 38 points and the Dow Jones industrial average futures sank 307 points while Nasdaq 100 futures slid 45 points.

www.reuters.com...

I have no idea why anyone in their right mind would vote republican this year. Seriously, the same people that engineered the S&L crisis created the subpriime mess. The same people and fiscal policies are going to be employed by McCain. I can't even imagine where our economy will be in 4 years if McCain is elected president.

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.