Lehman Bors. Holding

EagleD · September 15, 2008

JayDub · September 15, 2008

This is not going to be pretty...

KRAM1 · September 15, 2008

This is a VERY BIG DEAL. Sounds like a chapter 11, but I would imagine it heads to a 7 soon enough if not from the start. Looks like the gov. will not step in like they did with the Bear Sterns deal...good! The Merrill Lynch and AIG situations will help make for a most "interesting" opening to the markets this morning and good bit of "challenges" for the financial markets as a whole the next few days. I hope this is just another step in the Wall St. "clean up" that certainly was a bit overdue. Hold tight, the US financial system is sound and I think folks will be rewarded in the long term for not pushing the panic button. So much of the problems are drive by psychology as well as actual financial stress. If the media was "turned off" for a week I would imagine that a lot of this would pass without too much trouble...I know, I know....but still you have to wonder how much of this is due to the psychological impact? Interesting, wouldn't you say? Too bad for the folks at Lehman...that firm was a solid contributor to the US markets for many many years...I think over 180 years or something like that. Amazing how things develop and adjust and the markets keep on going. Just shows how truly sound the US financial system is over the long haul.

Hold tight the next few days, might be a bit of a rocky roller-coaster ride. If you have a long-term horizon might just be a great time to add to your positions...hey, everything is on sale at a discount. Sort of like Macy's Red Apple Sales days....go get 'em!

greenminer · September 15, 2008

Further down the rabbit hole we go.

KRAM1 · September 15, 2008

I guess I am too much of an optimist...I see no rabbit hole here at all. The financial markets will handle this as it has other "shakeups". The gov. NOT bailing them out is a very good thing for the long term as it will let the folks on Wall Street know that going forward, they can't do "stupid stuff" with the expectation that Uncle Suger will bail them out. Yep, will have some short term "pain" as they say, but long term this is a good thing. At least that's my take right now and I am sticking with it until proven wrong....and, I hope I'm not! Just one of those little "corrections" we go through every so often...HOPEFULLY! :blink:

Green Mean · September 15, 2008

I was watching the news this morning and they said that when news first broke out about these two, the international markets were hit pretty bad.

yyz28 · September 15, 2008

Dow down 400 after the news of this weekend, which included Merill and Lehman...

...but I'd bet the prospectors will have jumped in by week's end as the oil continues to drop ($96 today) and this 400 is made up. It'll be an even week by Friday, bank on it.

Check that... 500 now... I stand by my "even week" prediction...

Edited September 15, 2008 by yyz28

yyz28 · September 18, 2008

Dow down 400 after the news of this weekend, which included Merill and Lehman...
...but I'd bet the prospectors will have jumped in by week's end as the oil continues to drop ($96 today) and this 400 is made up. It'll be an even week by Friday, bank on it.
Check that... 500 now... I stand by my "even week" prediction...

Up 400 today, 100 on Tuesday, so we've got back 500 of the 1000 lost this week... I may be a little short on my even week prediction, but I still bet we gain again tomorrow and find ourselves down like 200 points at the end of a week we've seen ourselves 1000 points down.

...I wish I had some cash to throw in the market last night. I'd be havin' a good day...

KRAM1 · September 19, 2008

Hold tight today...should be interesting. Hope you didn't sell out and lock in those losses earlier this week.

yyz28 · September 19, 2008

So far so good... Up tree-fiddy with a few more "what the fed is going to do" announcements yet to come.

Shoulda bought like a Mo-Fo Wednesday night.

Censored by Laurie · September 19, 2008

So far so good... Up tree-fiddy with a few more "what the fed is going to do" announcements yet to come.
Shoulda bought like a Mo-Fo Wednesday night.

This is interesting that you seem to be on board with the Fed and other world central banks saving the market. it doesn't strike me as very invisible hand

yyz28 · September 19, 2008

This is interesting that you seem to be on board with the Fed and other world central banks saving the market. it doesn't strike me as very invisible hand

Two things are at the center of this problem. The first is the measure signed by Bill Clinton that allowed financial bankers and investment bankers to come together. The second problem at the center of this problem is Fannie May/Freddie Mac and the Mortgage problem in this country that they, by and large, created. FM/FM are basically government agencies, who, due to a lack of oversight by congress (despite efforts by one of the presidential cantidates to overhaul it... guess which one.) is at the core of the current process. Bush and the "spend like drunken sailors" Republican Congress of the 2000-2006 era never lifted a finger to resolve the problem as a whole despite the efforts of a few conservative members of congress who forsaw what was coming. When the Government creates a problem, I expect them to resolve it.

The markets are still free. You can jump on e-trade today just like you could yesterady and buy or sell some stock.

...The Fed/SEC making moves to calm the market down is fine by me, and is historically prudent.

The AIG bailout is a GREAT deal for taxpayers. First, the treasury has 85% interest in AIG now, who has trillions in dollars in assets, meaning if after AIG takes out the loans and they collapse, the Treasury can be made whole. AIG must pay back what they take out at a rate of somewhere between 8% and 11% depending on the timing of it, which benefits taxpayers via higher income to the treasury.

Lehman doesn't have the hard assets AIG did, hence the reason the deal wasn't offered to them.

I have no problem with Government bailouts when they are structured as a business deal, and not simply a handout. I applaud the people who have the balls and brains to put this deal together.

EagleD · September 22, 2008

Monday 9/22.

The Dow fell almost 400 points today.

My 401k is in the toilet!

KRAM1 · September 23, 2008

Don't "flush" yet, EagleD. My guess is that you are plenty young enough to make lots of $$$$ long term in your 401K and other investments. Don't panic...I have been through several of these little "shakeouts"...some much deeper and steeper....it "ain't" fun and it "ain't" pretty, but it sure is nice on the other end after the shakeout. Buy good "stuff"...you will be fine. Look at it like it's a big Macey's Red Apple Sale Day on Wall Street...buy good stuff and buy it now!

Ok, call me an optimist...but Warren Buffet is buying!

EagleD · September 23, 2008

Yeah, I know. My in-laws are in a panic but I'm trying to reassure them, and think the about long term. Basic rule of investing is buy low and sell high, right?. If I had some extra cash right now, I'd buy.

I'm actually more upset about SRV getting snubbed by the R&R Hall of Fame. But that's another topic. Really. I started another thread about this.