Lehman Brothers' Lost Weekend

Aggie67

For what it's worth, here's my take:

The financial sector got itself in this mess, and now it's paying the piper. We should all look at Lehman's fall as a necessary act. Merrill getting bought was a necessary act. All the suits that are going to get laid off is a necessary act. You'll hear about a bunch of smaller firms getting bought or folding up, and it's all necessary.

Look at it this way: the housing market's necessary acts are home prices falling to a sustainable level and the national inventory shrinking to 5 months supply. And an overall contraction in construction. That needs to happen for healthy times to return. There was a go-go bar period of frothy construction, and now we have a hangover.

Same deal in the financial market. There was a go-go bar period of lax lending standards and some questionable packaging of risk into weird financial instruments (called derivatives) that you couldn't hang a price on, and now's the hangover. The quicker the financial sector sticks its finger down its throat and throws all of this up on the sidewalk, the better.

genecarp

Agreed, it has to happen, expect more , eggs must break in order to make an omelet

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jazzbone

For the most part the economy seems to have been growing since Reagan took office (I could be wrong ) but it seems to have peaked about a year ago, once housing started to decline it's been kind of a domino effect and it's not just our country, thing is how is it going to get better and how bad will it get before it does I don't personally think anyone has any idea about this you can look at history for a guide but that was then this is now good luck to us all !

silvertree

Wellll, when you explain it that way it all makes sense to me.

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Vote for Pedro
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concretemasonry

Is is a result of the Congress not passing the appropriate controls over the years.

Probably why a couple of senators are running on the basis of changing (what they did) conditions and controls. Probably why the Congress has a lower public acceptance rating than the President.

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Dick

Engineer, designer and consultant recently active domestically and internationally on construction and design in about 35 countries.

neolitic

Anybody wanna make me a short term loan?


Just say...$30 billion?
Maybe $40?




Anyone?





I'm in insurance, what could go wrong?

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