If Lehman Brothers Fails

[Baltimore]

http://www.reuters.com/article/hotStocksNews/idUSN0842492020080914

As of 8:45PM tonight it appears that the government is not going to bail out Lehman Brothers.  This is the right thing to do. Bailing out private institutions and making them government owned is a form of socialism.

If there is no bail out then we are in for some rough economic times on many levels. There could be mass panic in the morning or the next few days and there could be bank runs soon after.

Lehman Brothers has its hands in just about every financial market in the world. It will be like the first in a series of dominoes falling down.

One positive that should eventually come out of this is a massive drop in housing prices. Once Lehman fails and then some large banks fail they will be forced to sell assets and the market will be flooded with houses.

Monday should be interesting...

[Roadwarrior]

(sorry for the crosspost)

Your comments are right on
it would have been the beginning of
a financial apocalypse.....
as would have been the failure of Bear Stearns ....

I have some Lehman Bros garbage  in  a money market ....

I was very worried about potential financial catastrophe

Also I wish Greenspan wouldnt keep opening his mouth ...
he has caused enough trouble ...

[Lewinsky Stinks, Dr. Brennan Rocks]

Housing prices, even today, are as inflated as oil is. The housing market is 100% driven by robber-baron speculators. Since Fannie Mae and Freddie Mac are amongst the biggest campaign contributors to politicians, of both parties, on the planet, it was only natural for these whores to bail out these corporate beasts just like they did the airlines after 9/11. Obviously it would be a good thing for big players in the housing market--or any multinational corporation for that matter--to go belly-up, with no bailout. These pigs have raped the American consumer for far too long. No average-sized house should cost, today, more than 50-100k. Since virtually all houses are built by gutter-wage wetbacks (instead of unionized construction workers), housing prices, adjusted for inflation, should be infinitely cheaper today than yesterday, which isn't the case. *desperately misses rolleyes emoticon*

[Americanhero1]

Housing prices, even today, are as inflated as oil is. The housing market is 100% driven by robber-baron speculators. Since Fannie Mae and Freddie Mac are amongst the biggest campaign contributors to politicians, of both parties, on the planet, it was only natural for these whores to bail out these corporate beasts just like they did the airlines after 9/11. Obviously it would be a good thing for big players in the housing market--or any multinational corporation for that matter--to go belly-up, with no bailout. These pigs have raped the American consumer for far too long. No average-sized house should cost, today, more than 50-100k. Since virtually all houses are built by gutter-wage wetbacks (instead of unionized construction workers), housing prices, adjusted for inflation, should be infinitely cheaper today than yesterday, which isn't the case. *desperately misses rolleyes emoticon*

I agree
C.F. here is the roll eyes 

[Tzvi Ben Roshel1]

if their is no bailout, and these big corporations fail, then what do you think will happen to the average joe and the economy as a whole? We are in a hugg mess, I dont see the situation looking too good for anybody.

[Roadwarrior]

Hopefully the Feds know something we dont ...
and it won't be as bad as some have predicted

[Baltimore]

The worst case scenario is a complete collapse of the world financial system as we know it. This would be worse than the great depression. The chances of that happening are slim but there is a chance.

If Lehman fails it will take some other financial institutions with it. With the precedent set that no other corporations will be bailed out we could see a panic by investors and money would be taken out of banks and other corporations. This would lead to the failure of many banks (some large) including Washington Mutual. General Motors may also fail under this scenario.

With major banks and corporations suddenly disappearing many will lose middle class jobs. More middle class without jobs will sour the overall economy. Housing prices will go down with the extra houses on the market but banks will not give out loans as much as they once did. Less people qualifying for loans means less houses sold.

With banks failing those with accounts over $100k in the failed banks will lose everything they have over $100k. That is not good. We are talking about middle class joes losing tens to 100's of thousands of dollars. This will produce runs on banks. That is never a good thing.

The Federal Reserve will probably lower interest rates even more to stimulate spending and to provide a psychological diversion. That will not help.

Multinational corporations will be hurt, but many people are invested in these companies so they will be hurt also. Pension and Mutual funds could fail.

There is no such thing as a free lunch and this is just the price to pay for what we thought was a free lunch. Better to get it over with now. The longer we wait the worse it will be.

[ItalianZionist]

These horrible companies won't give many people a chance as far as hiring. Maybe they have affirmative action programs in hiring as well as HANDING OUT MORTGAGES. They pay their top executives millions upon millions while they hire relatives and "contacts," making it impossible for many qualified applicants to get jobs there. I hate to sound like a socialist but most of these Wall street firms can go to the devil.

[briann]

if their is no bailout, and these big corporations fail, then what do you think will happen to the average joe and the economy as a whole? We are in a hugg mess, I dont see the situation looking too good for anybody.

I knew this would happen.   Trying to stop this avalanche is next to impossible.  And when trading starts tomorrow... many are going to start panicking.  We will be experience something that hasn't been experienced since 1929.

[SavetheWest]

Lehman Brothers just declared Chapter 11.

This is really bad but for all JTFers this could be an opportunity.  The USA still has a 3% growth rate so we're not all going to a major depression...yet.  This could be a possible excellent time to buy stocks.  When everyone is running scared is where one can go in and buy a bunch and hold on to it.  You could lose money but WaMu could be a great buy as could many other stronger comapnies that will be hurt by this recent news. 

This could be a chance to make some money to give to JTF!

It's still a major risk right now. 

I just can't believe Greenspan.  He oversaw the deregulation of firewalls between insurance, investment companies and banks. 

We owe this whole mess to the Gramm-Leach-Biley law signed by Bill Clinton in 1999 that defanged the Glass-Stegal act in 1933. 

Just wait, although we have a strong country, the next victims of this whole mess will be the insurance companies. 
That will be a disaster.

[Lewinsky Stinks, Dr. Brennan Rocks]

Guys, you're all missing the big picture, with the exception perhaps of Americanhero. A total collapse of our MNCs, even if it produces a catastrophe on par with 1929, would almost be the best thing to happen to America. Unfortunately, the fat, lazy, liberal early-retiree cows of America need the sky to fall before their complacency about the government and this crony "capitalist" economy comes crashing down. Nothing else besides going homeless and starving will shake them, and few things will take (white) people back to conservatism like experiencing once again what it is like to actually have to strive for and eke out a living. Yes, it will suck for a whole lot of righteous and moral people, but there really isn't any other choice at this point. If all the gigantic financial houses crumble, when the pieces are finally picked up, at least consumers will have some choices besides loansharks. As far as I am concerned the predators who raped hardworking Americans with these obscene ARMs can all go to Gehenom anyway.

[Baltimore]

CF makes some great points.

NWJTF- DO not touch WaMu!!!! It will not exist soon enough.  It is toxic!

[Dr. Dan]

I just notice that like with everythign else..when something gets too high, it will drop and if somethign gets too low it will rise.  When financial institutions cheat and take advantage...it will result in trouble in the future.

[Tzvi Ben Roshel1]

Lehman Brothers just declared Chapter 11.

This is really bad but for all JTFers this could be an opportunity.  The USA still has a 3% growth rate so we're not all going to a major depression...yet.  This could be a possible excellent time to buy stocks.  When everyone is running scared is where one can go in and buy a bunch and hold on to it.  You could lose money but WaMu could be a great buy as could many other stronger comapnies that will be hurt by this recent news. 

This could be a chance to make some money to give to JTF!

It's still a major risk right now. 

I just can't believe Greenspan.  He oversaw the deregulation of firewalls between insurance, investment companies and banks. 

We owe this whole mess to the Gramm-Leach-Biley law signed by Bill Clinton in 1999 that defanged the Glass-Stegal act in 1933. 

Just wait, although we have a strong country, the next victims of this whole mess will be the insurance companies. 
That will be a disaster.

 Disagree. If I had money, I would wait a year before doing anything. At least this and next year looks like their will be very hard financial times.

 And what CF said, in my opinion is crazy. Why would anyone want their to be a collapse of the economy? Also it would probably move people to socialism and away from the "big greedy corporations" and the blame will be the corporations, and then the Jews.

[Ulli]

Yes, but your money will be without any value, because America's money is not bound to gold. The value of the Dollar is based on the trust of the citizen in the American national economic. If this trust is gone you will have a great inflation. Also the gouvernment will be tried to save the economic with the unnatural plans of John Maynard Keynes. This will increase the ammount of dollar-notes on the market. The consequence is also inflation. 

Perhaps it will be the best to spent your wealth by buying merchandise for your stock. So you have stable wealth in order to sell it during the inflation period. You can demand now in the economic process the real wealth according to the inflation rate. So at least your family will have always food and will not suffer too much.

My oppinion towards the persecution of Jews issue, you are probably right. But if you are thinking this is only accurate for Jews you are mistaken.

The envy of lazy and sloppy people is going abouve religious and ethnic borders. Asians and white protestants will suffer as well under this wicked hand of bolschewist envy lazybones 

P.S.: My stock is filled very well.

[Lewinsky Stinks, Dr. Brennan Rocks]

And what CF said, in my opinion is crazy. Why would anyone want their to be a collapse of the economy? Also it would probably move people to socialism and away from the "big greedy corporations" and the blame will be the corporations, and then the Jews.

And it's not socialism for Big Brother to save the behinds of all of these bloated corporate corpses?

Newsflash--the Buchanans and Ron Pauls of the world are already blaming the current state of the economy on the Jews.

[Tzvi Ben Roshel1]

It might be socialism, but who said that some forms of socialism are 100% wrong? And the the free-market system is 100% correct. Only time will tell, perhaps.
 
 Yea but they are in the minority, and they have what to eat for now. What will happen to people when they dont have enough to eat?

[Tacitus]

I believe Barclays asked to buy Lehman's (much like the Northern Rock deal in the UK) but Paulson said no.

Next up: Washington Mutual

ohhhhhh brother

[AsheDina]

if their is no bailout, and these big corporations fail, then what do you think will happen to the average joe and the economy as a whole? We are in a hugg mess, I dont see the situation looking too good for anybody.

  America will soon find out what Americans did in "The Great Depression" we will have to go back to the basics. PLANT YOUR GARDENS!

[briann]

Guys, you're all missing the big picture, with the exception perhaps of Americanhero. A total collapse of our MNCs, even if it produces a catastrophe on par with 1929, would almost be the best thing to happen to America. Unfortunately, the fat, lazy, liberal early-retiree cows of America need the sky to fall before their complacency about the government and this crony "capitalist" economy comes crashing down. Nothing else besides going homeless and starving will shake them, and few things will take (white) people back to conservatism like experiencing once again what it is like to actually have to strive for and eke out a living. Yes, it will suck for a whole lot of righteous and moral people, but there really isn't any other choice at this point. If all the gigantic financial houses crumble, when the pieces are finally picked up, at least consumers will have some choices besides loansharks. As far as I am concerned the predators who raped hardworking Americans with these obscene ARMs can all go to Gehenom anyway.

I dissagree (Partially).  Look what happened because of the Great Depression.  (FDR and the new deal, and Adolph Hitler and the 3rd Reich).

Some of the WORST political victories have happened during economic turmoil.

[Angry Panther]

It might be socialism, but who said that some forms of socialism are 100% wrong? And the the free-market system is 100% correct. Only time will tell, perhaps.
 
 Yea but they are in the minority, and they have what to eat for now. What will happen to people when they dont have enough to eat?

With the obesity problem this country has people can simply live off their fat.

[briann]

  America will soon find out what Americans did in "The Great Depression" we will have to go back to the basics. PLANT YOUR GARDENS!

Stock up on Canned Goods!!!! 

[AsheDina]

With the obesity problem this country has people can simply live off their fat.

  HA HA HA 

[mord]

Yes, but your money will be without any value, because America's money is not bound to gold

   this is true it connected to walk street

[Tacitus]

With the obesity problem this country has people can simply live off their fat.

Maybe if the raise the prices of fast food. Otherwise, people's financial worries will only lead them to gorge on food.