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Location: Jonquil City (aka Smyrna) Georgia- by Atlanta
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Quote:
Originally Posted by evilnewbie
Apparently Paulson said that he would NOT bailout Lehman as its problems were obvious for a "long time"... so there will be no bailout... I am not sure what to think... if we don't bailout Lehman, then I guess we are saving the money to bailout someone else? I wonder who it will be... perhaps it was YOU all along.. A HA!
Paulson is just the Treasury Secretary. It is up to the Fed whether they get a bailout and the Fed will do it if they have to pony up some cash to get a sale done by Sunday night when the Asia markets open for trading.
I, too, am shocked at how complacent people are. Our national debt was unprecedented and staggering and it becomes more so every day. We can't bail out everybody that needs it. It has to stop somewhere... and when it does, things will crumble anyway. It's inevitable that some companies will go under, some homeowners will lose their homes, some nest eggs will be wiped out. Many will be reaping what they have sown, but innocent bystanders will suffer financial reverses, too. Propping it all up may stem the flow, but it's only temporary. The market must self-correct to some degree. The question is: to what degree and when?
This is the worst economic scenario I have ever seen, and things are poised to get worse. Maybe a lot worse. Yet people are blithely paying more and more for basic necessities like food, gas, energy and clothing, while their savings are being depleted and tax increases loom. Somebody has to pay for all this debt, and it's not going to be just the wealthy. The American standard of living will decline. How can it not? And few seem worried.
So China pushed for the Fannie/Freddie bailout and got it.
Now we have Germany pushing for the Lehman bailout. I guess Germany has some heavy investments in Lehman that they want protected.
Boy have we sold off the US bigtime...is there any country that doesn't have some kind of financial grip on the US ?
Germany urges US to find Lehman Brothers solution: Associated Press Business News - MSN Money (http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=AP&date=20080913&id=9139 390 - broken link)
I think that's the attitude you get in an extremely atomized society like this one. Everyone is focused so narrowly on their own situation that they ignore the big picture. And throw in a lot of distractions like IPods, XBox and whatever the latest cell phone is.
Quote:
Originally Posted by goodbyehollywood
This is the worst economic scenario I have ever seen, and things are poised to get worse. Maybe a lot worse. Yet people are blithely paying more and more for basic necessities like food, gas, energy and clothing, while their savings are being depleted and tax increases loom. Somebody has to pay for all this debt, and it's not going to be just the wealthy. The American standard of living will decline. How can it not? And few seem worried.
2 days of emergency negotiations and no plan yet. The Fed is demanding that the other investment banks find a way to save Lehman, but is adamant that it won't help them mitigate the risk by providing money.
2 days of emergency negotiations and no plan yet. The Fed is demanding that the other investment banks find a way to save Lehman, but is adamant that it won't help them mitigate the risk by providing money.
It looks like the banker boyz are playing "every man for himself".
They really need to put their ego's and balance sheets on the shelf and come up with a solution to save their entire industry.
Lehman going down could be the first domino. They need to step up to the plate and stop it. They are all just as guilty/greedy as the next and it's getting sickening to see how they've come to expect the taxpayers to pay for their foolishness.
Part of the reluctance by the other banks to save Lehman has to do with frustration over Lehman's behavior since Bear Stearns collapsed. J.P. Morgan was prodded by the feds to help out in that case. After the Bear collapse, Wall Street investment banks made it very clear to Lehman that Lehman was almost certainly next unless they took decisive action to save themselves. That would have included some extreme measures related to cost-cutting and openness with their books that Lehman's management was simply unwilling to take.
As a result, now that Lehman is imploding, nobody is particularly enthusiastic about salvaging what is left, though with yet more fed prodding and incentives, this will eventually get done.
Markets in Asia open at 4PM tomorrow. A deal will be done by then. Bank that!
KevK..I just cannot imagine what Monday would be like if no deal is made.
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not looking good so far
