Cat 4 hurricane heads for Wall Street

[inanna]

The next 24 hours are going to be very interesting in the financial markets, to say the least. Lehman Bros., the nation’s fourth largest investment bank, is going down the tubes. The federal government is refusing — appropriately — to bail it out, and major private financial institutions have reportedly balked at trying to save it, afraid of being dragged down into the whirlpool themselves.

Alan Greenspan sounds downright grim:

“First of all, let’s recognize that this is a once-in-a-half-century, probably once-in-a-century type of event…,” Greenspan says. “There’s no question that this is in the process of outstripping anything I’ve seen, and it still is not resolved and it still has a way to go.

“I can’t believe we could have a once-in-a-century type of financial crisis without a significant impact on the real economy globally, and I think that indeed is what is in the process of occurring,” Greenspan said.

More: http://www.ajc.com/blogs/content/shared-blogs/ajc/bookman/entries/2008/09/14/cat_4_hurricane_heads_for_wall.html

[stray cat]

1. and tax payers will have to bail them out - maybe McCain will donate

since hw believes the Bush tax cuts to yhe top 5% must be preserved

[ananda]

2. WaMu and AIG are next.

nt

[indepat]

3. Not WaMu, please tell me not WaMu

:P

[az chela]

5. They have been in trouble for quite awhile

Wamu was hoping to be taken over but it didnt happen

[FourScore]

4. What happens to the property owners when these institutions collapse?

What happens to their loans?

[az chela]

6. Also what happens to the people who owe money on

Wamu credit cards???

[unblock]

11. you still have to pay

chances are your credit card account will be sold to someone else, so you might wind up with, say, a chase card as a replacement for your wamu card.

[unblock]

10. unfortunately you still have to pay your mortgage :)

you might wind up paying someone else, but one way or another you still have to pay.

[benld74]

7. I predict a HUGE sell off when the markets open on Monday,,,

400-500 point loss at least.

[Lebam in LA]

9. DJ Futures down 305

not looking too good for tomorrow

[paparush]

8. BOA went beyond its approved liquidity limits to buy Merrill.

Ye gads.