Wall Street Prepares for Potential Lehman Bankruptcy (possibly by midnight)

Explain to me how as a society we are supposed to rely on this kind of a market to provide for our needs and prosperity.

What caused this? Was it continued deregulation and lack of accountability? Wasn't all that supposed to lead us into a more prosperous economy? Why have these houses of cards collapsed? I think those are the questions we should be addressing. These are huge financial houses, not recent little players. Why didn't their mathematical projections work?

Why should we continue to buy the conservative spiel that less regulation, less oversight, and fewer taxes will always lead us into prosperity?

It certainly doesn't look that way for the working citizen who isn't banking offshore at the moment.

 

From Drudge:


ALL EYES WALL ST...
LEHMAN GOES BUST...
BIGGEST BANKRUPTCY EVER...
LIQUIDATE...
Feds Balk at putting up taxpayer money...
DAY OF RECKONING: CEO hubris contributed to meltdown...
Abu Dhabi 'wait and see' on troubled banks...
CHART: EU STOCK PLUNGE...
Obama blames Wall St. crisis on Republican policy...
McCain: Regulations needed...
Paulson vows to maintain stability...

 

hahahaha.....there is no greater truth than this

 

Well, I guess sometimes the truth appears stranger than fiction.

 

Most often it does actually.

 

bernanke is now breaking federal law in an attempt to calm the markets..

http://globaleconomicanalysis.blogspot.com/2008/09/feds-pdcf-tslf-pawnshop-limits.html

The Fed is acting to prevent a spillover from the Lehman collapse, taking a series of emergency liquidity actions explained in Fed braces markets for likely Lehman collapse.

Bernanke Violates Federal Reserve Act Section 23A

Allowing banks to extend funds to their brokerage affiliates is in violation of Federal Reserve Act Section 23A.

Section 23A of the Federal Reserve Act ( Act ), originally enacted as part of the Banking Act of 1933, is designed to prevent the misuse of a bank's resources through non-arm's-length transactions with its affiliates and to limit the ability of a bank to transfer its federal subsidy to its affiliates.​

Bernanke's willingness to break the law is in strict accordance with Fed Uncertainty Principle Corollary Number Four.

more on the link...

 

those monkeys must be howling on wall street

seeing them trade always freaked me out

 

AIG falling off a cliff...down nearly 60%

Wamu losing another 20%

Wachovia down 20%

Now banks can use YOUR DEPOSIT MONEY to fund their investment banking subsidiaries, sayeth the FED!
(see link in my above post)

The PPT is hard at work today, The fed has injected 70 BILLION today thus far.

They are trying to stave off a crash...

 

Surprise, surprise, large financial institutions using our investments to roll the dice on sketchy, often predatory investment practices, then sticking us with the bailout bill when things go south, because they know if we don't the market will crash, and we can't have that.

Soo, now that the precedent has been set, what prevents any of the big boys from doing the same? They've got nothing to lose, right?

I almost wanna say let 'em go belly up, screw the economy, we're all headed that way anyway if things don't change, might as well get it over with and teach 'em a lesson.

 

AIG just got thrown a life ring.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aSZ0D0Xb6xzM&refer=home


x

 

I love your sig pic Xexon

 

Paulson speaking at the white house...

"The American People can Remain Confident in the Soundness and Resiliance of the American Financial System..." -Hank Paulson Semptember 2008

Wait a minute that sounds familiar, where have a heard that before? oh yeah...

"There is no cause to worry. The high tide of prosperity will continue." — Andrew W. Mellon, Secretary of the Treasury. September 1929

 

Wow it’s going down. Front page of BBC has them all at like –3%
This day could go down in history.

So not bets against the -7% in 15 days? It rolling fast…

 

WEll I don't doubt that....it's made its mark anyway with three such big monsters crashing towards the ground.

 

I still have no idea what's going on

 

well then go back to your psychedelics and let this illusion burn away without having much of it touch ya

 

oh snap!

 

if the pattern continues its going to be around 7% by the end of the month,i doubt it will be more than 10%..

like i said,there is so much cash going into the market through our retirement plans its only going to fall so fast..

but just remember every penny you contribute to your retirement is essentially vanishing.. may as well burn it..

when the bank runs begin and people begin cashing in there 401K's in droves is when it will really begin to go..

that however is going to be a slow process. anyone thats in a 401K knows they essentially hold your money hostage. but times are getting tough and more and more are going to qualify to get theres..

i should say theres already talk of bank runs,but that alone isnt enough to cause the market as its supported to fall into the abyss..

 

I still think it could limp back up in a few months but if it keeps up the current cycle I think it could be a rough few years.

It’s hard to hear real options from the experts they want people to still invest and feel safe so a lot are just full of shit.

But man, just keep seeing drops and drops not looking good.

I could see people cashing in the 401ks I would of done it as soon as gold doubled price in less then a few years.

 

well im pretty sure ive lost my job (at least till further notice)and if thats the case,cashing in my 401K is going to be the FIRST thing i do.. the second thing im doing is paying my mortgage off..
then i dont really give a fuck.. let it go..