Financial Armageddon!!

[Commercial Dan]

http://www.cnbc.com/id/26709718

Lehmann bankrupt, crash possible on Wall St tonight

[Perry]

Some more commentary, here.

[cube]

Anyone know how much our Aussie banks are tied up with Lehman/Meryll Lynch/AIG?

[tanmedia]

Anyone know how much our Aussie banks are tied up with Lehman/Meryll Lynch/AIG?

Well we know the Aussie banks have spread the risk, but we don't know to what extent that the Aussie banks have their risk spread in debt instruments. My bet is that it's quite substantial. Macquarie is down about 10% today. The big miners look relatively unscathed. Naturally, gold has reacted. It's a national holiday in Japan so the Nikkei hasn't set the tone in Asia.

[donna]

Yep it has happened - Lehman Brothers has filed for bankruptcy protection (chapter 11) - failed to secure a rescue package.

Cheers,

Donna

[donna]

Merrill Lynch said to have agreed to be taken over by Bank of America.

Geez!

Cheers,

Donna

[Keys]

Merrill Lynch said to have agreed to be taken over by Bank of America.

Geez!

Cheers,

Donna

Suggest you change the wording under your username for a little while Donna.

[Ethtre]

oh my goodness, I'm just reading a PDF of their official bankruptcy papers!! There are a few Aust/NZ banks listed on there as creditors, and lots of Asian ones - ANZ (Australia) in particular to the tune of more than $25 mil. Tiny compare to the $138b for City bank!

[Commercial Dan]

oh my goodness, I'm just reading a PDF of their official bankruptcy papers!! There are a few Aust/NZ banks listed on there as creditors, and lots of Asian ones - ANZ (Australia) in particular to the tune of more than $25 mil. Tiny compare to the $138b for City bank!

Can you paste the pdf file in here?

[roseneath_rat]

Don't you think the term 'armageddon' is a little severe for this situation?

[mattnz]

$25M is nothing. I work for a big 4 Australian Bank and that hardly registers on our risk scale.

[Ethtre]

Can you paste the pdf file in here?

if you can tell me how Otherwise I can e-mail it to you? I've downloaded it to my desk top. The original location of it requires membership - it's posted on the ticker forum.org in breaking news (sorry it wouldn't let me post a url!)

[Perry]

Don't you think the term 'armageddon' is a little severe for this situation?

Depends on how one spells it - right?

[Badger]

armageddon sounds close enough

and remember still have the credit default swaps and ARM's to go in 2009...

[TonyMacaroni]

European Markets down 3-4% across the board so far - I guess it'll be an interesting night. Armagedon seems to sum it up, hard to say how quickly it'll play out now. I think we're going to see a real train wreck on Wall Street overnight.

From Chris Martensons site today:

http://www.chrismartenson.com/blog/gigantic-bank-pool-pledged-avert-disaster-second-big-crash-stuns-wall-street/4703

-- The World, October 29, 1929

Largest Financial Powers in the City Meet After Day of Hysterical Liquidation Sinking Prices Below Thursday's By Laurence Stern

After the stock market had come crashing down again in a veritable deluge of forced and hysterical liquidation, word sped through the financial district last evening that the largest banks in the city were prepared to exert their organized power this morning to prevent further disaster.

Arrangements described as "fully adequate" were completed at a conference at the offices of J. P. Morgan & Co. at Broad and Wall Streets...

Although no formal statement was issued, it was the consensus of those at the meeting that the worst of the liquidation is over and that a natural demand for investment stocks now available on the bargain counter should go far toward an immediate restoration of trading stability.