How far is the market going to crash today? http://online.wsj.com/public/us Merrill sold itself to Bank of America and Lehman filed for Chapter 11 as the U.S. financial system was shaken to its core. The government's decision to reject a Lehman bailout touched off a nerve-wracking test of the U.S. financial system.
my prediction is that it might gap down today, but over the next few days it will come back to where it is right now
Same prediction here. I think the market is much better prepared for this event than it thinks. Financials will be battered, but the rest of the sectors should bounce back before week end. But as for today, it's going to be ugly. European indexes crashed 5% -- not much reason to believe it won't be at least the same or worse here, unless the Fed does an emergency rate cut before close.
Ugly pre-market numbers: Citigroup -9.24% UBS -17.7% Bank of America -16% JP Morgan -7% WaMu -19.4% Goldman Sachs -8.6% Morgan Stanley -10.42%
The Republicans have SCREWED it up, they are robbing Peter to pay Paul, the idea of deregulation sounds great until you realize that regulations are there to limit corporations from making risky investments. At the end of the day, deregulating banks bit us in the arse. Thanks Phil Gramm.....and John McCain. DD
I think he will be doing that at the debates.....it is like the republican's economic policy is a "Get rich quick" scheme, where the Democrats are more pragmatic. The Reaganomics trickle down plan has failed miserably, and we are now 9 trillion in debt.........tough choices ahead to get this country back on it's feet. So many cuts to do to help alleviate the strain. DD
What scares me is that they couldn't keep this thing propped up until after the election. And I agree with DaDa... more evidence that Repubs can't run government or business... and this was entirely predictable when we started doing away with Depression era checks on the Financial sector.
Assuming you can actually understand what's risky and what's not risky. People are just so damn partisan these days, everything has to be entirely one side's fault.
It is sad to see it all, my team or bust type of deal.......the biggest issue is that sometimes putting the right team in place means that people have to suffer a little bit to fix something that is broken, and no one wants to do that. Our economy is the biggest in the world, as we go, so goes the world....if we go down, it is depression all over the world. DD
This had to happen. Like someone else said, the feds have finally put moral hazard back on Wall Street. There had to be a sacrificial lamb. This one will finally force everyone to change the way they do business, knowing that they can't count on a bailout anymore. Now Citigroup can get around to properly writing down all those Alt-A assets they're still valuing at 80 cents to the dollar. UBS has already taken the cue (announced a further $5bn in writedowns this morning). The sooner we can get this mess sorted out, the better. If these guys are smart and can put some greed aside for the greater good, they'll create a bad bank and move all those bad assets into it.
I agree that they won't be able to easily fix it, but to not understand WHY it happened and to take measures to stop it from happening again, is stupid. DD
We now somewhat understand what had happened, I am sure there will be steps taken both inside the banks and government to prevent it from happen again. Of course that doesn't necessarily stop the next bubble from created, you can bet wall st will come up with new products which most won't understand. It is what it is, a once a lifetime credit bubble, not really anyone particular's fault. More regulations aren't going to stop the next big crash 50 years from now.
