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Wall Street pillars come crashing down: Lehman Brothers file Bankruptcy, Merrill Lynch sale to Bank of America; AIG heading for bankruptsy

This is a shocking day, we thought someone would have pulled Lehman, Merrill Lynch like Bear Stearns, Freddie, Fannie. But it is shaking time!

We have some tough challenges here. Get ready to stand up on your own! Expect real harsh conditions in 2009!

A stunning makeover of the Wall Street landscape sent stocks falling precipitously Monday, with the Dow Jones industrials sliding 500 points in their worst point drop since the September 2001 terrorist attacks. Investors reacted badly to a shakeup of the financial industry that took out two storied names: Lehman Brothers and Merrill Lynch Co.

Stocks also posted big losses in markets across much of the globe as investors absorbed Lehman's bankruptcy filing and what was essentially a forced sale of Merrill Lynch to Bank of America for $50 billion in stock. While those companies' situations had reached some resolution, the market remained anxious about American International Group Inc., which is seeking emergency funding to shore up its balance sheet. A faltering of the world's largest insurance company likely would have financial implications far beyond that of Lehman, the largest U.S. bankruptcy.

The swift developments that took place Sunday are the biggest yet in the 14-month-old credit crises that stems from now toxic subprime mortgage debt.

Investors are worried that trouble at AIG and the bankruptcy filing by Lehman, felled by $60 billion in bad debt and a dearth of investor confidence, will touch off another series of troubles for banks and financial institutions that may be forced to further write down the value of their own debt assets. Wall Street had been hopeful six months ago that the collapse of Bear Stearns would mark the darkest day of the credit crisis.


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Comments

  1. me too, I didn't expect that Lehman Brothers would be file a bankruptcy. I thought US government would save them.

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A Collection of Threnodies : Part 1

Whale Fall
-----------------

Dress me up in my new threads
clasp my greasy palms
grease my hair
I'm ready for the fall


Watch at all the decadence
watching the avalanche
I'm slipping down
losing my buoyancy


What's become of us
where have we come
this far, this close
close to the doors


I hear them, sublimal chants
I'm on the run
I race through the human sea
I am the king!


I'm the slave
to my own undoings
I'm the jester in my courtyard
We jest as we run


We're strolling on that thin rope
we grope as we rope
we're true heros
we're the survivors


we're the scavengers
we're the friends
we're the lovers
we're the unbred


Soon awaiting the fall
we're lurking on us
we're osedaxing us
we're soon going to be done
we'll soon be arrested




*osedax(bone devourer, newly discovered marine genus) feeds on a fallen(sunken) whale carcass(which is also called a whale fall). Read more here