The ongoing financial turmoil and financial discussion thread

[I-Hate-Hulse]

It's been one hell of a Sunday here:

- Lehman Brothers gets passed on by Barclays, going bankrupt.
- Merrill Lynch - laden with bad the same festering assets as Lehman, will be sold to Bank of America.
- AIG, the world's largest insurer, is going to have to sell off substantial assets to survive.
- Washington Mutual, the largest S&L - is in trouble, likely to be sold next week.
- the Fed, and other US banks are putting together a $70B bailout fund.

This as they say, could be really ugly. While the facts might suggest a smaller than expected decline, I think investor confidence will be shot and the dreaded recession word has the potential to be in full force.

Buckle up for tomorrow...could get a little bumpy here...

[V]

I've been waiting for a day like tomorrow. Time to go fishing, I think.

[Wookie]

Just looking at CNN world markets, only showing Australia's indices. All down about 2%. Asia should be open already, London in an hour or so. Although I'm going to bed. Tomorrow will be lame @ work.

[Jing]

Huge huge events today. I am expecting nothing short of fireworks (and not in a good way). Hey, atleast i can hope for a weakened us dollar for my traveling needs.

[HotHotHeat]

This will sound like I'm up on my high horse, but are people really surprised by any of this? Economists have been warning of the financials sector 'shakeup' for weeks, months, and even years. So many fundamental problems with the US economy...

But it's alright...Bernie boy over at the Fed will wake up tomorrow morning and turn that knob that says 'interest rates' down a bit. Not that he has any clue what it does.

Should be interesting to watch how the Republicans handle the coming weeks.

[Claeren]

Banks have 'only' declared losses of $350B so far. They should easily be looking at $1,000B (1 Trillion) by the time it is done so that means we are 'only' (at best) 1/3 of our way into this.


Another factor that I read will hit the markets tomorrow is that insurance companies are seen as one of the only relatively secure/liquid financial services sector companies left (depeneding on their internal portfolio mix of course) and they are going to be taking a hit on claims from all the hurricane damage this year.


I would be careful about bargain shopping right now.


Oh, and home prices are going to keep free-falling in the US and there is no way our home prices are going to start growing while that is happening....


If the 'Nation of America' (so to speak) had to put together a clear financial report for the public and the American public was smart enough to understand it I am pretty sure there would be some (1) big team fear and (2) a bigger push for meaningful change.




Claeren.

[TimSJ]

Oil off more that $6 already this morning.. TSX is likly going to get pounded.

could be an ugly day.

[Wookie]

Just looking at the pre-bid/ask for a lot of the stocks I follow - doesn't look to be tooo bad. But usually it's a pretty weak indicator as things bounce around quite a bit before the open. Could be bad though, wouldn't be surprised to see the worst week of the year.

Hmmm, looks worse getting closer to the open. Sadness.

[Wookie]

TSX down 413 thus far.

[Caged Great]

dow down 300

[pepper24]

Ugly day ahead.

[Table 5]

So am i the only idiot out there who held on to Lehman stock hoping for some miracle?

[Neeper]

Man, I am taking a beating!!

[I-Hate-Hulse]

Oil at $95. Anyone know what economics are on all these tight formation plays like Montney and Bakken? Can they be profitable at $90 oil? This is getting into provincial budget estimates range methinks.

I learned yesterday that there has been considerable movement of capital from energy to financials last week in the market. I don't understand how a bailout of Freddie Mac and Fannie May would persuade that argument...

[Table 5]

Originally Posted by I-Hate-Hulse

I learned yesterday that there has been considerable movement of capital from energy to financials last week in the market. I don't understand how a bailout of Freddie Mac and Fannie May would persuade that argument...

Because it get's rid of the dead weight. Just like with people, the market's seem to need closure rather than just flounder away. I think the Lehman thing will actually help the markets eventually, as it helps cut the dead weight and let the market get on with it's life!

[Bertuzzied]

Originally Posted by Table 5

So am i the only idiot out there who held on to Lehman stock hoping for some miracle?

Buy some more at 17.8 cents and hope the news is false like UAL.

Good thing i have a short account running right now. It is so far balancing the losses i'm taking on all my mutual funds.

[Top Shelf]

Not looking too bad at the moment, down about 260. I've stopped making predictions because we could end up with a gain today and I wouldnt be surprised. we could also lose about 500 and i wouldn't be surpised either.

[SportsJunky]

This just in from the McCain camp: "The economy is fundamentally strong".

[Bertuzzied]

Originally Posted by SportsJunky

This just in from the McCain camp: "The economy is fundamentally strong".

This is great. I really hope they win. hehe Americans deserve another 4 years of republican rule.

I was really hoping Bush would find a way so he could run for a 3rd straight term.

[Bring_Back_Shantz]

Originally Posted by Bertuzzied

This is great. I really hope they win. hehe Americans deserve another 4 years of republican rule.

I was really hoping Bush would find a way so he could run for a 3rd straight term.

Yes, because when one of the worlds largest economies goes into the tank, it can only be good for everyone else right?