[mos6507]

The sheeple got "sidetracked" by that mere Cat 2 Hurricane Ike in the Gulf, when there is a Cat 10 financial hurricane hitting NY as we speak.

At this point what would you have the sheeple do?

[static66]

I just got a call from my broker in NY, he said the shit is hitting the
fan first thing tomorrow... the Dubai express is supposedly riding in to the rescue of LAYMAN BROS. and the deal is that they are going to own the rest of the shadow-bankers lock stock and smoking gun.
The reverse switch under is under way.... bomb all you want, they own the government now. Hold onto your hats.

[hironegro]

Don't worry guys!

[ColossalContrarian]

In taking over F&F the US government blew up its debt by $5.3 trillion. That pushed the US debt level to almost the GDP of the country. Once the US goes over that GDP number, most likely it will lose its AAA credit rating. It has already been warned by the BIS.

If the US, which holds the world’s reserve currency, loses is pristine credit rating the whole world falls apart! Insurance, pension funds, the dollar, the whole shebang goes!

Thanks shortonoil. You have explained the crux of the problem! It's a tailspin from here.

According to the CIA Factbook the GDP of the USA was $13.84 Trillion (2007 estimate).

Our National Debt with the inclusion of Fannie Mae and Freddie Mac now exceeds our GDP.

We are toast

I just love this "F&F takeover = $5 trillion more government debt" being tauted at so many doomer sites. Things are bad, but not that bad, at least not yet. F&F are no where near completely insolvent. They have some of the better quality mortgage debt out there. They will not likely cost the taxpayers anywhere near $5T, and certainly their takeover has not cost that yet, so the National Debt does NOT yet exceed GDP. The USD has a bit more life left in her. My expectations for the next 5-10 years are for slow economic and social decline/collapse with high inflation (but not hyperinflation).

INFLATION bawhahahah!!!! over the next 5-10 years??? Who are the banks going to lend to, unemeployed endebted Joe Six-Packs??

PA-LEASE!!!!!

[mmasters]

I think that's quite surprising they're in the process of letting lehman fail. So now they can chop the firm into pieces for other major institutions to absorb on the cheap. All under the rhetoric that they're not "bailing out" anymore.

Glad I got out of there a few months ago!

[Cid_Yama]

Lehman Brothers Holdings Inc. prepared to file for bankruptcy after Barclays Plc and Bank of America Corp. abandoned talks to buy the U.S. securities firm and Wall Street prepared for its possible liquidation.

Lehman and its lawyers are getting ready to file the documents for bankruptcy protection tonight, said a person with direct knowledge of the firm's plans.
link

[IndigoMoon]

Bank of America to buy Merrill for $29 a share: report
Sun Sep 14, 2008 10:11pm EDT

NEW YORK (Reuters) - Bank of America Corp willo acquire Merrill Lynch & Co Inc for $29 a share, a deal that will give the bank the world's largest brokerage and a sizable investment bank, the Wall Street Journal reported on Sunday

The deal comes as bankers and regulators met in New York to figure out whether to rescue Lehman Brothers Holdings Inc, and if so, how. Those talks seemed increasingly likely to result in Lehman's liquidation.

Link

[seahorse]

The sheeple got "sidetracked" by that mere Cat 2 Hurricane Ike in the Gulf, when there is a Cat 10 financial hurricane hitting NY as we speak.

At this point what would you have the sheeple do?

Bleet and run.

[jbrovont]

Lmfao! Well... kinda. :/

At this point what would you have the sheeple do?

Bleet and run.

[DantesPeak]

In taking over F&F the US government blew up its debt by $5.3 trillion. That pushed the US debt level to almost the GDP of the country. Once the US goes over that GDP number, most likely it will lose its AAA credit rating. It has already been warned by the BIS.

If the US, which holds the world’s reserve currency, loses is pristine credit rating the whole world falls apart! Insurance, pension funds, the dollar, the whole shebang goes!

Thanks shortonoil. You have explained the crux of the problem! It's a tailspin from here.

According to the CIA Factbook the GDP of the USA was $13.84 Trillion (2007 estimate).

Our National Debt with the inclusion of Fannie Mae and Freddie Mac now exceeds our GDP.

We are toast

I just love this "F&F takeover = $5 trillion more government debt" being tauted at so many doomer sites. Things are bad, but not that bad, at least not yet. F&F are no where near completely insolvent. They have some of the better quality mortgage debt out there. They will not likely cost the taxpayers anywhere near $5T, and certainly their takeover has not cost that yet, so the National Debt does NOT yet exceed GDP. The USD has a bit more life left in her. My expectations for the next 5-10 years are for slow economic and social decline/collapse with high inflation (but not hyperinflation).

INFLATION bawhahahah!!!! over the next 5-10 years??? Who are the banks going to lend to, unemeployed endebted Joe Six-Packs??

PA-LEASE!!!!!

The government.

In WWII, the US government ran huge budget deficits. Banks at that time lent almost all of their increase in assets to the US government.

And yes, it did result in a wave of inflation when the war was over.

[eastbay]

In WWII, the US government ran huge budget deficits. Banks at that time lent almost all of their increase in assets to the US government.

And yes, it did result in a wave of inflation when the war was over.

And the brief wave of post WWII inflation was tempered by the (generally) robust post-war economy powered by exports of cheap energy and other basic commodities as well as exports of an incredible range of manufactured goods plus the safety and security of the USA in general as an economic safe haven.

Q: So, what's going to temper the newly arriving wave of accelerating inflation?

A: Nothing.

[oneplain1]

I guess this is why the oil markets opened early for trading today also?

[AlexdeLarge]

This is the beginning of the end. The whole shebang is about to fall because the US can't control what the rest of the world does to protect itself.

Other central banks and sovereign funds will step in too. If the US financial system blows, they will be farked even worse. Also, its a good long term strategy for other Central Banks to step in. Its helps them in both the short and long term. The US is helped in the short term, but is diminished in the long term.

[ColossalContrarian]

No war(s) is going to [s]feed [/s]fuel the economy out of this mess. It’s that big.

In WWII, the US government ran huge budget deficits. Banks at that time lent almost all of their increase in assets to the US government.

And yes, it did result in a wave of inflation when the war was over.

And the brief wave of post WWII inflation was tempered by the (generally) robust post-war economy powered by exports of cheap energy and other basic commodities as well as exports of an incredible range of manufactured goods plus the safety and security of the USA in general as an economic safe haven.

Q: So, what's going to temper the newly arriving wave of accelerating inflation?

A: [s] Nothing. [/s]

A: Lack of Credit.

The excess in debt is far greater than the accumulated wealth of the economy. It’s constricting quickly!

The US’s history of being able to buy its way out of debt has ended. When in history has this ever happened? We’ve barely seen the beginning of financial scandals and who knows what effect that will have on the economy? People will be trying to save their own butts rather than go to prison and we’ll be seeing Category 5 “Enron style” collapses.

[ReverseEngineer]

The US’s history of being able to buy its way out of debt has ended. When in history has this ever happened? We’ve barely seen the beginning of financial scandals and who knows what effect that will have on the economy? People will be trying to save their own butts rather than go to prison and we’ll be seeing Category 5 “Enron style” collapses.

Can I ask who will pay the taxes to keep them imprisoned? Somehow I don't think Prison is the solution here. Think French Revolution, think Marie Antoinette, think Gullotine.

Reverse Engineer

[Ang]

I think LEH just filed BK.

[ColossalContrarian]

The US’s history of being able to buy its way out of debt has ended. When in history has this ever happened? We’ve barely seen the beginning of financial scandals and who knows what effect that will have on the economy? People will be trying to save their own butts rather than go to prison and we’ll be seeing Category 5 “Enron style” collapses.

Can I ask who will pay the taxes to keep them imprisoned? Somehow I don't think Prison is the solution here. Think French Revolution, think Marie Antoinette, think Gullotine.

Reverse Engineer

not "The People"

but the bankers, CEO's, CFO's.... Joe Nacchio, Ken Lay

The Crooks will go to prison and when their path is uncovered in (like fraudulent funny money, "cooking the books") the economy will suffer even more.

[Ang]

*LEHMAN BROTHERS AUSTRALIA SUSPENDED, SAYS ASX

off the wire 0:04

*LEHMAN BROTHERS CLEARING SERVICES SUSPENDED, ASX SAYS

wire 0:05

[eXpat]

Wall Street on alert: Lehman endgame

NEW YORK (CNNMoney.com) -- Wall Street remained on alert late Sunday as hopes for a buyout of beleaguered Lehman Brothers faded and following extensive efforts by both executives and regulators to stave off a broader financial crisis.

As the weekend drew to a close, the Federal Reserve announced plans to expand its lending to the banking industry in an effort to calm the markets. In addition, a consortium of 10 top domestic and foreign banks agreed to create a $70 billion fund that would serve as a lifeline for troubled financial firms.

The fate of Lehman, following weeks of speculation about its health, appeared grim after Bank of America (BAC, Fortune 500) and British bank Barclays (BCS), both viewed as potential "white knights," pulled out of deal talks as of Sunday afternoon, according to sources.

A Lehman executive, who declined to be identified, told Fortune "this looks like the end."

link

[burtonridr]

I think LEH just filed BK.

Got a link or something for information?