Black Sunday: Lehman Bros. Goes Bust, Merrill Sold to Bank of America
In one of the worst financial crises of our lifetime, the venerable Lehman Bros. investment bank has been told by Treasury officials that no public funds will be used to bail out the firm. Merrill Lynch has agreed to be purchased by Bank of America for $50 billion. The fate of insurance giant AIG is not known at this writing.
There are several stories about the situation in this morning’s Wall St. Journal and I have no doubt that the story will be widely covered, but IMHO, one thing must be kept in mind. Lehman has suffered the same fate that anyone of us as private citizens would suffer if we bet the farm on one roll of the dice. Lehman will now either be liquidated or will file for bankruptcy.
The only satisfaction that comes out of this situation is that the Treasury finally said no to a firm looking to tap taxpayer funds. The amount of risk these firms took and the hubris of their CEO’s is nothing short of stunning. After the colossal bailouts of the shamelessly mismanaged Freddie Mac and Fannie Mae, if the Secretary of the Treasury has showed up this weekend with our checkbook in hand to cut another check to the pirates that have been running these companies the last few years, I believe that the next order of business would have been a tax payer revolt.
~~John Cronin~~
September 15th, 2008 at 11:09 am
John, thanks for your comments regarding Lehman Bros, Merrill Lynch, and AIG. This is HUGE! I posted my comments on yesterday’s events earlier this morning (Pacific time)under the “Charlie Gibson’s Gaffe” heading.
It’s a relief that hte federal govt. refused to bail out Lehman Bros, but no two ways about it, America is in FINANCIAL crisis.
McCain on the stump in Florida coming on strong against Wall Street corruption, bad loans, greed, etc. Well, that’s a start.
We, the people, have got to change our failing government. John, your “peasants with pitchforks” phrase comes to mind. I don’t have a pitchfork, but I’ve got a shovel and garden trowel!
September 15th, 2008 at 11:27 am
We need Mitt Romney more than ever!!
September 15th, 2008 at 1:08 pm
http://www.people.com/people/article/0,,20225679,00.html
September 15th, 2008 at 8:09 pm
2tp,
Bring your shovel and trowel, we need all the tools we can get. I’ll bet that a lot of our friends and relatives think those of us who spend so much time on political blogs are a little kooky, but I can honestly say that I have never experienced anything like the last 8 years, starting with the attempt to hijack the 2000 election, right down to this morning’s headlines. The United States of America is in a debt crisis and our way of life is threatened. Conservatives must seize control of the process thru the election, through Congress and thru our continued involvement in the process.
September 15th, 2008 at 8:43 pm
Well said, John.
The underlying, critical, absolute necessity is for our federal government to CUT SPENDING. We aren’t going to be able to tax ourselves out of this one.
And it’s going to get ugly. There are going to be a lot of grimacing Americans before we find relief.
After the news last night, the gravity of this election just increased 100%.
September 15th, 2008 at 8:48 pm
John, ha!ha!
I’ve got the rasp out and I’m sharpening my shovel and trowel right now!
Peasants with pitchforks, shovels, trowels, scythes, weed whackers, snow blowers, potato combines for America … You name it, we’re gonna need it!
September 16th, 2008 at 7:13 am
McCain himself is one of 50 who helped create this problem. He readily admits that he knows squato about economics. I wonder if his bad decision a few weeks ago is now starting to come back and haunt him. Imagine having Mitt front and center as the Veep nom, with this crisis going on? I’d sure feel a lot more comfty. But alas, I’m destine to at least 4 years of really bad government. I don’t think McCain wants to improve the coutry. I think he just wants to be elected to cap off his life. That’s the way I feel, and I really don’t care if he reitres this fall or not. In fact, I pray he does retire. Were in for a rough ride anyway. I’d much rather have someone who’ll I can REALLY blame, and not just my own party.
September 16th, 2008 at 7:21 am
2thepoint.
How does this effect the election. You have many factors going for you.
1. the electorate appears to be pretty bigoted and stupid.
2. Why put into office a chap who admits that he does not know economics, and who’s arm candy running mate left her wee little city with a HUGE deficit? I don’t have a warm fuzzy about any of this. Why should I reward McCain, when he has done nothing more than slap us in the face and take our money out of our pockets. I am NOT saying that Obama will be better. He’ll be worse. But that might actaully be the ‘plan’. Prophets have been telling us to get prepared that this is going to get nasty. How many of us have actually taken that advise? how many have avoided dept? How many have put away food and money? How many have planned for these times? McCain won’t fix it. He’s been in congress for 30 years, and we’ve been through this before. He helped create the climate for this, now he has no idea how he will fix it. Talking tough? With what? Mascara?
September 16th, 2008 at 7:21 am
Maybe it’s time for 2 veeps. One for the armcandy, the other for the real work at hand. I might go for that one.
September 16th, 2008 at 2:31 pm
Chris,
What does what affect the election? The financial market melt-down?
You sound as if I’ve stated that I’m supporting McCain. As I’ve stated many times here I won’t be making a decision on whom to vote for until I’ve heard all there is to hear - debates, townhalls, news conferences, press statements, daily campaign developments, etc. and checked records.
Re your #1 point: I disagree. Some electorates are bigoted. Some are less-informed. Some are bigoted AND less-informed. I don’t claim to have exact percentages on the intelligence quotients on Americans, but there are many interested, knowledgeable, FAIR-MINDED voters in our country who are keenly interested in the economy, our wars and foreign policy, domestic issues, incl. pending social security crisis, health care, and family values. They also care about education reform, tax reform, and illegal immigration reform.
Re your #2 point: Your “why put into office a chap who admits he does not know economics” argument is short-sighted. Would you have voted for McCain with Romney as his VP? If McCain/Romney were elected, McCain would (according to your words) “STILL not know economics” but he would have had Romney to advise him. Though Romney isn’t McCain’s running mate, McCain’s opportunity to select other economic/financial advisors still exists. Though Romney would have been marvelous, McCain’s options haven’t evaporated without Romney at his side.
Your “arm candy” comment reveals your disdain of Palin. I disagree that Palin is “arm candy.”
I make no claims to hae inside information about a “plan” and citizens may or may not choose to prepare for disasters/financial difficulties, but I do know this: Your attitude that McCain won’t fix “it” (I assume you mean the economy) and that Obama won’t be any better is limiting and fatalistic. Citizens of the United States have the responsibility to do all in their power to communicate their opinions, to speak up, shout, assemble, march, and vote to affect reform. Whether we have an Obama/Biden or a McCain/Palin presidency we should do all within our power to make federal, state, and local governments change to really work for we, the people.
And, with the cosmetic industry generating over $40 billion dollars per year, I wouldn’t denigrate the over 50 % of the population that uses mascara.
September 16th, 2008 at 5:37 pm
2tp. As you can tell, I’m not wild about the panderpalin pick. I think she’s out of her league. she has a lot of baggage, and I have very little trust of her. I’m not hearing a whole lot of good about her. And those that are voting for her are often doing so based on her religious outlook. I will not vote for mccain. I had issues with him before, and with Mitt, I might have pulled the trigger. maybe even with Ridge. I would have cnsidered Cohen or Whitman. But with the econ tanking so fast and far, I don’t think anyone can pull it out. We just have to ride the cycle. Mccain himself admits he’s not well versed on it. And keep in mind, a lot of what is happening is because of things put in place years ago.
I will be voting GOP on the down ticket. Heck, I’m in Utah. We’re lemmings here too.