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Republican economics Lehman starts to fail!

Discussion in 'Elections & Political Parties' started by top gun, Sep 11, 2008.

  1. top gun

    top gun New Member

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    Talk about Nero fiddling while Rome burned... and so it continues with the Republican's leadership in the economic sector.

    Hiding behind word games & made up lipstick attacks and false charges of sexism is all the Republicans have to offer. What else can they really do... they don't get many votes admitting... Our plans for the future are to CHANGE AMERICA with a solid continuation of the course we are on... and THIS ELECTION WON'T BE ABOUT ISSUES!!! WHAT! ARE YOU KIDDING ME!!!

    While the McCain camp desperately looks for anything but issues to talk about yet another major financial group may face bankruptcy. It's so sad. The Republicans have truly put this country in devastating economic times that seem to worsen every single day. It will soon be devastating to nearly every America.

    This is the "TRICKLE DOWN" the Republicans have always promised! TRICKLE DOWN POVERTY!!!
    :eek:


    Lehman Souvenirs

    Talk about gallows humor. With Wall Street buzzing Tuesday over what will happen to Lehman Brothers, sources say pens with the Lehman name printed on them were a hot commodity at the firm’s financial services conference taking place in New York City.

    The pens which were placed in large bowls outside the conference rooms at the New York Hilton in midtown Manhattan disappeared quickly. Some people taking the pens weren’t shy about telling friends and people around them that they wanted a souvenir. The hunt for Lehamn swag sums up the desperate situation surrounding Lehman, which has yet to find any outside investor willing to give it billions of dollars in badly needed capital.

    Shares of Lehman fell from the start of the trading day and didn’t stop falling until the close of trading. The stock fell 44% to close at just under $8 a share—its lowest point since 1998. The big sell-off comes a day after after Lehman’s stock fell 13% in what has been a brutal year for the struggling investment bank. The plunge in Lehman’s stock price comes as a potential deal with a South Korean bank appears all but dead and the firm has yet to strike a deal with private equity investors for its one crown jewel—-its Neuberger Berman asset management business. Lehman has been shopping Neuberger and other asset managment businesses for weeks, but private equity firms have been unwilling to meet the firm’s terms.

    The fierce selling is reminiscent of the trading action in shares of Bear Stearns during that fateful week in March when it was on the verge of collapse. Bear ultimately was sold to JPMorganChase for $10 a share in a hastily arranged shot-guy marriage by the Federal Reserve. In that deal, the Fed agreed to provide a lifeline to guarantee about $30 billion in Bear’s ailing assets. But in the wake of Treasury’s bailout of Fannie and Freddie, many on Wall Street are beginning to question whether the federal government will have the stomach to rescue Lehman too.

    Time is clearly runing out for Lehman and CEO Richard Fuld. The firm is set to announce third quarter results on Sept. 18 and the results should be ugly. The firm may report a writedown of between $6 billion and $8 billion. There’s some speculation Lehman may announce its earnings earlier to calm the markets. But traders say that without raising the necessary capital, it will be difficult for Lehman to announce earnings because it would take a big hit to its already depressed book value.

    Meanwhile, credit rating agency Standard & Poor’s says it may cut Lehman’s debt rating because of concern about the firm’s ability to raise new capital.

    Lehman’s market-cap is currently under $7 billion and sinking fast. That’s well under the $9 billion that some market analysts have valued its Neuberger Berman business at as a stand alone entity. In other words, Wall Street is treating Lehman’s other businesses as if they have no real value. The situation begs for Fuld to do something—fast. But for now Lehman isn’t saying anything. Stay tuned.
     
  2. BigRob

    BigRob Well-Known Member

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    Banks were the biggest shareholders in Fannie/Freddie. Shareholders lost their money.

    Lehman is trying to sell some assets to stay fluid, I have also heard talk they may buy themselves back and go private since the stock is so cheap.
     
  3. The Scotsman

    The Scotsman Well-Known Member

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    ....its cheap for damned good reason!!?? would you invest in it? :eek:
     
  4. BigRob

    BigRob Well-Known Member

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    I dunno, I might actually. Depending on how it progresses, if they can stay afloat and survive, then you will have gotten a decent stock at a great price.
     
  5. top gun

    top gun New Member

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    Lehman gone... files bankruptcy. Merrill Lynch forced to sell out to Bank of America before they went down too!

    It's bad and as I said more than a month ago economically it's going to continue to decline. The Republican mindset blowing up in our faces. Steady deregulation of the financial sector (all businesses actually) ... up to $12 BILLION DOLLARS per month piling up for 6 years on a "War" (really just an invasion & occupation) built on complete deception.

    We sure don't need a John McSame to continue on this disaster another 4 years.

    Bad... really bad!
     
  6. BigRob

    BigRob Well-Known Member

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    Of course it was Bush's fault that energy went through the roof and the housing bubble exploded right?
     
  7. Federal Farmer

    Federal Farmer New Member

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    Good ole tg, doesn't have enough faith in his C&P jobs to bother to POST A LINK so that we can laugh at him for reading such a silly website in the first place. Isn't there something LEGAL that REQUIRES people who use other peoples work to GIVE CREDIT FOR USING THAT WORK??? I SMELL A LAWSUIT, I SMELL A LAWSUIT!!
     
  8. Libsmasher

    Libsmasher New Member

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    Top Grin - let's face it - you are big on blather and short on knowledge. What you know about economics you could write on the back of a postage stamp. :D If you don't have anything substantive to say (and it's REALLY hard to imagine that you could) shut up - nobody wants to hear your fact-free, logic-free, unschooled buffoonery. :p
     
  9. foggedinn

    foggedinn New Member

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    I kinda get the impression that Paulson, Bernanke, et al are whistling past the graveyard right about now. They are just hoping to hold the financial system together until the next president takes over. Four months to January. I doubt they will make it.

    The financial talking heads on tv are wondering if todays five hundred point drop in the DOW represent capitualation. They're idiots; a five thousand point drop would represent capitulation.

    If they hold it together until January, the next president gets the blame for the depression, and the Bush legacy(whatever that is) will be somewhat less tarnished.
     
  10. Libsmasher

    Libsmasher New Member

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    I don't get how people think the failure of those companies is a problem - they made huge amounts of foolish investments, and now they'll disappear. Problem? What problem? :rolleyes:
     
  11. Dawkinsrocks

    Dawkinsrocks Well-Known Member

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    The problem is that the US Government will give billions of dollars to these thieving bastards when one third of the working population strugges on $9 or less per hour.

    And republicans seem to think that giving money to help the poor is an evil pursuit.
     
  12. top gun

    top gun New Member

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    Of course not... nothing is the presiding Republican administration fault. They've been in basically total power for two full terms (8 years) why would anything be their problem.:eek:

    And invading and occupying Iraq (on a lie) for 6 years that actually helped oil prices drop like a rock!:eek::eek:

    Coooooooome on! Take some responsibility for all your economic blunders and your anything business wants deregulation... something, anything!!!


    And here it gets even BETTER! John McCain as soon as the Lehman bankruptcy & the Merrill Lynch distressed sell out to Bank of America and the 500 point stock market drop was announced he goes straight to his next campaign rally (few hundred people no Palin) and...

    Praises the economy... Economies sound... completely missing the point.

    OUT OF TOUCH!!!
     
  13. top gun

    top gun New Member

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    Moderators please consider this:


    multiple personal attacks

    repeated personal insults

    not one single statement on topic in this post
     
  14. Dawkinsrocks

    Dawkinsrocks Well-Known Member

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    You need to remember that republicans can only do good. Anything that happens on their watch that is bad is the fault of democrats.

    Bush is beyond reproach for his sound economic policy at home and for his inspirational foreign policy.

    It's just a shame that the domestic economy is ****ed and everyone hates America.

    But that has nothing to do with Bush.

    Ya hear?
     
  15. BigRob

    BigRob Well-Known Member

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    It is everyone's fault. The housing bubble can be dated back to the 70s and can even be argued it only expanded under the Fed policies under Clinton...

    And no, I do not think you can blame the Iraq War for high gas prices. Doing so ignores the fact that we at the same time had lack of OPEC Spare Capacity, Nigerian production problems, and one of the lowest inventories since 1974, none of which were related to much to the War. You will further notice that even post invasion, oil prices remained mostly stable...

    Further, we had speculation through the roof.

    Taking Iraq off the market eliminated some 2 million barrels of oil a day, this might seem like a lot, but certainly not to justify an increase of 100 dollars a barrel. We just took the entire Gulf Coast offline, and guess what, oil dropped like a rock.

    Perhaps you assume booming Chinese demand was caused by the Iraq War? Whatever you are assuming, in regards to the Iraq War being the destabilizing factor in the oil market is just flat out wrong...

    Of course, it was the Republicans who regulated giving out crappy mortgages to everyone right? It was the Republicans who changed the way the FED rated banks right? It was the Republicans who enacted new FED policies that extended the housing bubble right?

    Take off the blinders and realize that everyone is to blame in this situation.. don't give me the same crap about Bush and Iraq caused every problem, because quite frankly it exudes ignorance.

    I saw the rally, he said he believed the economy was fundamentally strong because the American worker is fundamentally strong. He then went on to state we have a major crisis. I am sure you already knew that of course, because obviously you are so well informed.
     
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