Lehman Brothers has declared it will file Chapter 11 bankruptcy after the Feds decided they have already bit off more than they can chew by bailing out Bear Stearns and then Fannie May and Freddy Mac.
Merril Lynch narrowly avoided the same fate when Bank of America stepped up to the plate with an offer to buy them at $29 a share.
Here is a quote from a NY Times article;
“This is an earth-shattering event, this is like a tectonic plate shifting event,” said Thomas Priore, chief executive of Institutional Credit Partners, a hedge fund active in credit markets. “This is welcome back to Black Monday.”
The NY Times front page right now is bordering on hysteria.
The opening lines from their lead story right now,
In one of the most dramatic days in Wall Street’s history, Merrill Lynch agreed to sell itself on Sunday to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, said it would seek bankruptcy protection and hurtled toward liquidation after it failed to find a buyer.
Right now it is just after eleven o'clock here on the Left Coast.
By the time I wake up in the morning , just how bad it is going to get should be readily apparent.
Thank you George W. Bush.
6:55 AM, the stock market opened about twenty minutes ago and right now it is down -340 points.
At Noon Pacific it is down -400.
It's a blood bath.
-504 at close of business.