Lehman, Merrill news

[Sizzle]

Does this directly affect anyone here on Pricescope? I am VERY afraid where our economy is headed.

 

[dragonfly411]

It worries me quite a bit as well. Our economy is not in good shape, and it is starting to affect the global market as well.

 

[TravelingGal]

No, but I am sure many of us will know someone who is affected. The IndyMac fiasco affected a good friend of ours...he got laid off and severance was at a minimum (only what was required by law). He was laid off in July, and just got a job. But right before he got his offer, his wife was let go from her job. I tell ya, when it rains, it pours. I can''t imagine how awful it would be to have a mortgage and a 1.5 year old with both parents out of work.

 

[elrohwen]

Two of my very good friends from college work at Lehman in NYC. I''ll be in the city next week for work and was going to ask them out to lunch, then I picked up the paper this morning and saw the news

I sent them an email and I hope they''re ok ... though I imagine there will be layoffs and such. Very scary! I hope if thy are laid off that they can find new jobs quickly.

 

[Kaleigh]

Yes, DD and Hubby have friends who work for Lehman, and Merril. Hubby owns an investment firm. He said today was the worst day in 6 years. This is scary, for sure.

 

[purrfectpear]

Only to the extent that I moved my entire 401K out of the market in February. I hate like heck to have it in a guaranteed 5% fund as I feel like I''m not even keeping up with inflation but the market is just to flaky for me at present. Between that and having my liquid savings earning a whopping 3.5% I feel like I''m going backwards

I was earning almost 17% a year and I guess I thought that was going to go on for the next 10 years. The economy sucketh.

 

[KimberlyH]

I just saw a prediction that 30,000 jobs will be lost on Wall Street. I only caught the tail end of the info so I am not sure what I missed, but I do know that what is going on is terrifying for all of us, whether or not you''re employed by these companies what happens to them affects the rest of the country.

 

[somehowcollide]

Date: 9/15/2008 5:33:25 PM
Author: Kaleigh
Yes, DD and Hubby have friends who work for Lehman, and Merril. Hubby owns an investment firm. He said today was the worst day in 6 years. This is scary, for sure.

That is scary to hear Kaleigh, not mention that the Dow has fallen 500 points...

 

[Dancing Fire]

Date: 9/15/2008 4:00:00 PM
Author:Sizzle
Does this directly affect anyone here on Pricescope? I am VERY afraid where our economy is headed.

yes, i need a loan.

on thee other hand i

that our government didn''t bail out Lehman with taxpayer''s money.

 

[Dancing Fire]

looks like AIG and WM is next to go BK.

this whole mess started because of sub prime loans.

 

[Harriet]

Hopefully, AIG is salvageable.

 

[Dancing Fire]

i think many more banks will go out of business before this mess is over.

 

[Kaleigh]

Date: 9/15/2008 7:34:13 PM
Author: Harriet
Hopefully, AIG is salvageable.

I hope so too.

 

[Eva17]

Date: 9/15/2008 7:34:13 PM
Author: Harriet
Hopefully, AIG is salvageable.

yes i hope it is too.

been checking all day to see if they have come up with a plan yet.....

 

[AGBF]

New York State is going to allow one part of AIG to lend money to another part of AIG. I do not know the details, but obviously AIG is being given permission to break some regulations.


Deborah

 

[Harriet]

The subs will be lending to the parent. It looks like the subs are solvent. So, if a bankruptcy happens, it may happen only at the parent, and not the sub, level.

 

[Hudson_Hawk]

Question: If big banks like BOA or The Royal Bank of Scotland (which just bought Citizens) buy up these other companies during times of crisis, does that set us up for monopolies in the economic sector? It seems like the government, while not using taxpayers money to bail these banks out of trouble, is supporting these acquisitions. Isn''t that a conflict of interest with our antitrust/monopoly laws?

My heart goes out to all of the clerical and lower level staff of these firms. While I sympathize with everyone, my sympathy can only be extended so far for the traders who bring in $350,000/year in salary and bonuses (stat from the Boston Globe yesterday). This is one of the times where I''m happy that I live paycheck to paycheck and haven''t been able invest a ton into my 401K. However I may start seeing as the prices are so low.

 

[tradergirl]

AIG rejected a private equity buyout over the weekend so one would think they would have at least that to fall back on.

Dancing Fire: are you loving DUG right now?

The market has affected this Pricescope reader. I am having the best year of my life. I''m a dedicated short seller.

 

[dragonfly411]

Hudson - first I love your signature

Second, I am thinking that the buy outs at this point aren''t something we''ll have to worry about yet... If they continue it could be a problem but as of now ...

 

[Dancing Fire]

Date: 9/16/2008 9:32:37 AM
Author: tradergirl
AIG rejected a private equity buyout over the weekend so one would think they would have at least that to fall back on.

Dancing Fire: are you loving DUG right now?

The market has affected this Pricescope reader. I am having the best year of my life. I''m a dedicated short seller.

i sold DUG @ $40.50 bought some VLO @ $32.50

i think refineries should profit from lower oil prices.

 

[MichelleCarmen]

Date: 9/15/2008 7:14:19 PM
Author: Dancing Fire
looks like AIG and WM is next to go BK.

this whole mess started because of sub prime loans.

Wamu next? Should I take my $50 out of my bank account?

I opened a new account at another bank and never closed my WAMU because it''s too much of a pain to drive down there just for that!

 

[Dancing Fire]

Date: 9/16/2008 3:53:16 PM
Author: MC

Date: 9/15/2008 7:14:19 PM
Author: Dancing Fire
looks like AIG and WM is next to go BK.

this whole mess started because of sub prime loans.

Wamu next? Should I take my $50 out of my bank account?

I opened a new account at another bank and never closed my WAMU because it''s too much of a pain to drive down there just for that!

i''ll be worry if i had over $100k in my account, but i don''t have that problem

 

[roppongi]

Bernanke and Greespan both have said more companies will fall within the year. Lehman was downgraded yesterday afternoon so instead of raising 40 billion dollars it will be more like double that. I hate to say it, but I think Washington Mutual will be the next to fall.

DH just moved from an European Investment Bank to Private Equity....economic times are definitely tenuous.

 

[MichelleCarmen]

Date: 9/16/2008 4:04:00 PM
Author: Dancing Fire

Date: 9/16/2008 3:53:16 PM
Author: MC

Wamu next? Should I take my $50 out of my bank account?

I opened a new account at another bank and never closed my WAMU because it''s too much of a pain to drive down there just for that!

i''ll be worry if i had over $100k in my account, but i don''t have that problem

Same here. All my money is hidden under my mattress. . . that must be why it''s so lumpy!

I heard the other day that if a bank goes under that depositors then become the bank''s creditors and those people may only get "pennies on the dollar," of their deposits. Is this true? Is this for people with over $100k in a single account. . .or did I just misinterpret what I heard on the news the other day.

 

[MichelleCarmen]

Date: 9/16/2008 4:12:26 PM
Author: roppongi
Bernanke and Greespan both have said more companies will fall within the year. Lehman was downgraded yesterday afternoon so instead of raising 40 billion dollars it will be more like double that. I hate to say it, but I think Washington Mutual will be the next to fall.

DH just moved from an European Investment Bank to Private Equity....economic times are definitely tenuous.

There was a new Wamu building built just last month right down the road from me. They seemed to have some confidence as of just this last year. . .

I guess it''s too much of a daydream to imagine that if they do go under, I won''t have to pay off my credit card?

 

[Dancing Fire]

Date: 9/16/2008 4:14:45 PM
Author: MC

Date: 9/16/2008 4:12:26 PM
Author: roppongi
Bernanke and Greespan both have said more companies will fall within the year. Lehman was downgraded yesterday afternoon so instead of raising 40 billion dollars it will be more like double that. I hate to say it, but I think Washington Mutual will be the next to fall.

DH just moved from an European Investment Bank to Private Equity....economic times are definitely tenuous.

There was a new Wamu building built just last month right down the road from me. They seemed to have some confidence as of just this last year. . .

I guess it''s too much of a daydream to imagine that if they do go under, I won''t have to pay off my credit card?

but....that''s when their shares was trading at $40 not $2.32 as of today''s closing price. LUNCH TIME !

 

[niccia]

I hear you Tradergirl...this volatile market has been good for me too. I do know of several traders that are buying up shares of AIG now believing that it is bound to be saved, but I am not quite that optimistic just yet. I was worried about my parents because they have all their life insurance with AIG, but it seems as though policy holders will be protected.

 

[Hudson_Hawk]

Not to sound TOO naieve, but what happens if you have consumer accounts like credit cards with companies that go under. Do they just sell the account to another company? What happens to that debt?

 

[MichelleCarmen]

Date: 9/16/2008 4:34:53 PM
Author: Hudson_Hawk
Not to sound TOO naieve, but what happens if you have consumer accounts like credit cards with companies that go under. Do they just sell the account to another company? What happens to that debt?

We don't have to pay off our debt if the bank goes under so right now is the time to go charge away (that is if you have the right banks - BOA probably won't go under, so don't use that card)!!!

lol

Of course, I am just kidding. I asked a similar question about WAMU a few posts up. Surely the new bank who buys out what is left of the assets, becomes your new creditor or something along that line.

 

[Dancing Fire]

Date: 9/16/2008 4:34:53 PM
Author: Hudson_Hawk
Not to sound TOO naieve, but what happens if you have consumer accounts like credit cards with companies that go under. Do they just sell the account to another company? What happens to that debt?

if that happens....then you send your payments to Dancing Fire.