Joined: May 2005
Posts: 1361
Buckle your seatbelts folks
9/15/2008 at 12:44 AM
Tomorrow(err today) might be one of the bloodiest days we'll see on the markets.
Just announced that Lehman Brothers is filing for chapter 11 bankruptcy protection, it was long thought that a consortium of businesses would prop it back up, but tonight they all walked away.
Bank of America just purchased Merrell Lynch for a 70% premium, don't see this helping BoAs stock, they need to raise about 45$ billion to complete the purhcase I think(or have read), and if they issue shares for it, thats just going to dilute their shares that much more.
AIG is failing, and from what I've read, the Fed can't bail them out as they have no jurisdiction over the insurance industry.
This is all just from what I've read or my understanding on things, I wouldn't classify it as the sky falling, but it is getting pretty darned close. A few more failures or bailouts and we might see their financial system really crack(and risk collapse)