The financial markets are in meltdown again. The reason:
Lehman Brothers, one of the biggest investments banks files for bankruptcy protection
Merril Lynch the biggest investment bank is taken over by Bank of America. Indication that Merrill could not sustain its independent status and was in some trouble
AIG one of the biggest Insurance company asks Federal Reserve for $40bn
Disasters all around, the credit crunch is biting.
Tighten your seats belts for a rough ride.
FTSE down over 100 points this morning and dow futures down over 200 points.
The only way to make money in this market is to short dow futures.
I read AIG is looking to sell its profitable Aircraft Lease business, not sure how much that will help. Sadly they still have many profitable divisions, esp in core Insurance practices...but overall the losses have caused the whole company to be in a slump.
I can only pray after hearing all this news about Lehman, Merrill Lynch & AIG.
On radio, they were saying that,Ex-Federal Reserve Chairman Alan **Greenspan, **said that its not over yet as the housing market is not where it is suppose to be. According to him, his best guess is spring of 2009 before we see any rise at all.
On radio, they were saying that,Ex-Federal Reserve Chairman Alan Greenspan, **said that its not over yet as the housing market is not where it is suppose to be. According to him, his best guess is **spring of 2009 before we see any rise at all.
Thats what many other analysts have said as well, some said it could be mid++ next year.
Lenders poor practice over the last 3-4 years has brought this downfall for many financial organisations, it was never going to last and this credit crunch sure is a wake up call for such huge and well known financial institutes.
10.2 billion wiped off todays markets in the UK alone.
Lenders poor practice over the last 3-4 years has brought this downfall for many financial organisations, it was never going to last and this credit crunch sure is a wake up call for such huge and well known financial institutes.
greed greed and more greed, it was teh greed frenzy, ppl got bitten by it during the dorcom rise and fall and real estate. back with dot com days ppl had quit work and were makign more money as day traders without knowing jack, and now it was ppl flipping homes, buying too muc inventory for some sort of real esate goldrush, builders satisified the frenzy and financial sector allowed ppl to do that. I sometimes wonder they killed arthur andersen and came with with sarbanes oxley, in hindsight it looks like sarbanes oxley did nto do jack in this case.
greed greed and more greed, it was teh greed frenzy, ppl got bitten by it during the dorcom rise and fall and real estate. back with dot com days ppl had quit work and were makign more money as day traders without knowing jack, and now it was ppl flipping homes, buying too muc inventory for some sort of real esate goldrush, builders satisified the frenzy and financial sector allowed ppl to do that. I sometimes wonder they killed arthur andersen and came with with sarbanes oxley, in hindsight it looks like sarbanes oxley did nto do jack in this case.
Good point, Sarbanes Oxley is supposed to be practised very widely in states less so in UK. I wonder how such a bubble was created in the housing market and how the mess in the secondary mortgage market developed unchecked if these practices were being observed and enforced strictly. The obvious answer is that maybe only lip service is being paid to SO.
Good point, Sarbanes Oxley is supposed to be practised very widely in states less so in UK. I wonder how such a bubble was created in the housing market and how the mess in the secondary mortgage market developed unchecked if these practices were being observed and enforced strictly. The obvious answer is that maybe only lip service is being paid to SO.
Sarbanes oxley is a crock of shyt.
the funniest thing with it was that after teh enron fallout it was established because oh so much negative light was on accounting and audit folks...and guess who helps the damn companies with SO compliance. the same damn companies.
Someone willc ome and say that SO was not designed to deal with this stuff and that can be partially true, but all that means is that the architects fel short of protecting shareholders and investors, they may have solved one problem while ignoring many others.
The carnage continues today with FTSE down another 168 points currently and close to breaching the 5000 level. That level might not hold depending on how Dow behaves in the afternoon.
The carnage continues today with FTSE down another 168 points currently and close to breaching the 5000 level. That level might not hold depending on how Dow behaves in the afternoon.
How long do you think this turmoil goona last? Its gonna effect almost every business not just financial sector and i have already started to feel the pinch in my job. My IT company fired 200 people last week.
After initially hearing about it yesterday morning when I walked ito work, I was a bit depressed & worried. But then reality is not much you can do to change it, so no need to depress oneself. Just hope to handle situation or deal with it as best as one can.
What about gold, is it going up now?