re: Lehman Watch Thread

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Well they definitely have to prepare. The word is, if Lehman doesn't close a deal by the time Asian markets open on Monday (Sunday evening over here), they're getting shut down or something.

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Barclays has pulled out. Just heard that B of A has pulled out. It looks as if they are actually going to file for bankruptcy.

Wow! Talk about a crazy day tomorrow! CNBC is worthless on the weekend. Damnit.

Quote of the day: Mike Morgan on bad debt contagion in the financials:

"This is a virus, with a 100% kill rate. This is a pandemic, the likes of which we have never seen. This is only something that can be fixed after we kill all the players that carry the virus, because the virus only dies when the host is dead. The hosts are the sick financial institutions being run by crooked executives, regulated by incompetent regulators, appointed by blissfully ignorant politicians and at the end of the line is a judicial system that is without power to do anything."

"I agree with this" Insert Kige image here

I guess it's triage.

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WSJ saying BAC and Merril in merger talks now.

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That the next tier of banks trying to solve their problems, or so they said on NBC news. Apparantly the Fed has decided to stay out of it and let Wall Street solve it on their own. There's blood in the water.

it should be interesting to see where they get the $50B. I thought the problem was that they didn't have any money to begin with.

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I've read that there are rumors of a Bank of America takeover of Lehman

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I am hearing Bank of America is going to buy Merrill Lynch.

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Uh, I'm willing to bet that there is some strong arm-twisting and "moral suasion" going on right now.

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nothing wrong with this!!!!!!

Its when its my money that is put into play I get pissed off.

And this is exactly what we need. Capitalists must realize that there is a chance ALL of your money will go bye bye.

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but you don't generally want a gov't that gets to decide who sinks and who floats.

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Dude, the fed isn't the gov't. They just control our money supply.

And yes, I agree, I don't like the gov't deciding who will sink and who will floats. But I also think its better for them to force the issue as opposed to everyone sinking.

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Get a grip. The Fed is the government

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No, its not. Its quasi governmental at best.

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U.S. Treasury Department.

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Well that part is true.

The Federal Reserve is a private bank.