[firestarter]

beamofthewave,

They aren't going to collapse. There is no chance of that.

[Cashmere]

$this->bbcode_second_pass_quote('ReverseEngineer', '')$this->bbcode_second_pass_quote('seahorse2', '
')
The Fed oviously cannot bail out ALL the banks,

[ColossalContrarian]

$this->bbcode_second_pass_quote('beamofthewave', 'S')o what are the implications of the collapse of Lehman? And what can I do to prepare, and does this mean I wont have to pay my mortgage anymore if the banks collapse?

Also thanks Roccman for your support last time.

[DantesPeak]

$this->bbcode_second_pass_quote('Cashmere', '')$this->bbcode_second_pass_quote('ReverseEngineer', '')$this->bbcode_second_pass_quote('seahorse2', '
')
The Fed oviously cannot bail out ALL the banks,

[beamofthewave]

I too was joking about the mortgage. And if I had any extra money I would send it to a friend of mine in the Peace Corps to help build a water system in Ghana.

[shortonoil]

Cashmere said:

$this->bbcode_second_pass_quote('', '')$this->bbcode_second_pass_quote('', '[')b]seahorse2 wrote:

The Fed oviously cannot bail out ALL the banks,

[Tapas]

$this->bbcode_second_pass_quote('shortonoil', 'I')n taking over F&F the US government blew up its debt by $5.3 trillion. That pushed the US debt level to almost the GDP of the country. Once the US goes over that GDP number, most likely it will lose its AAA credit rating. It has already been warned by the BIS.

If the US, which holds the world’s reserve currency, loses is pristine credit rating the whole world falls apart! Insurance, pension funds, the dollar, the whole shebang goes!

[dorlomin]

Barclays are apparently now out of the deal.

[TheDoctor]

$this->bbcode_second_pass_quote('Tapas', '')$this->bbcode_second_pass_quote('shortonoil', 'I')n taking over F&F the US government blew up its debt by $5.3 trillion. That pushed the US debt level to almost the GDP of the country. Once the US goes over that GDP number, most likely it will lose its AAA credit rating. It has already been warned by the BIS.

If the US, which holds the world’s reserve currency, loses is pristine credit rating the whole world falls apart! Insurance, pension funds, the dollar, the whole shebang goes!

[DantesPeak]

$this->bbcode_second_pass_quote('', 'L')ehman has hired law firm Weil, Gotshal & Manges LLP to prepare a potential bankruptcy filing, according to a person familiar with the situation. The New York-based Weil has a leading bankruptcy practice and advised Drexel Burnham Lambert on its 1990 bankruptcy filing.

In a Lehman bankruptcy, the firm's brokerage units would have to enter a Chapter 7 liquidation, in which a court-appointed trustee would take over, liquidate the firm's assets and get Lehman customers back their money. In general, securities that a customer holds at a brokerage firm are legally the investor's property and aren't exposed to the claims of the firm's creditors.

[section451]

Barclays have quit negotiations

http://news.bbc.co.uk/1/hi/business/7615712.stm

[Byron100]

$this->bbcode_second_pass_quote('Starvid', '')$this->bbcode_second_pass_quote('EnergyUnlimited', '
')There is no wealth to redistribute left. Most of that what we are calling "wealth" now will fall into disrepair and ultimate ruin within several decades.
Mansions, SUVs, private jets, road network, cities, you name it...

[DantesPeak]

Advanced preparations for Lehman default are in progress.

$this->bbcode_second_pass_quote('', 'F')ears that Lehman would be forced to file for bankruptcy by the end of the day intensified when the International Swaps and Derivatives Association opened an emergency trading session among Wall Street dealers with Lehman.

The trading session, due to last two hours, is designed to minimise the risk associated with a Lehman bankruptcy – an event that could have wreaked havoc on Lehman counterparties and the global derivatives markets. The trades will be void if Lehman does not file for bankruptcy by midnight.

[TonisD]

And another one bites the dust. Both Barclay and BoA out of the picture, Lehmann is gone.

[DantesPeak]

ISDA extends special Lehman derivatives trading until 6 PM.

Not good.

$this->bbcode_second_pass_quote('', 'A')s word that a Barclays deal was off filtered across Wall Street, credit derivative traders scrambled to unwind their outstanding contracts with Lehman and shift their positions to other banks. CDS traders at many Wall Street firms were told to come to work immediately.

With many trading desks open, investors rushed to buy credit default swaps tied to other brokerages and corporations, sending the cost of protection on investment banks such as Goldman Sachs and others sharply higher. One senior trader said Bank of America is offering to face Lehman's counterparties in CDS trades, as long as the swaps don't reference Lehman's own debt.

[roccman]

TF

Got XLF puts?

[threadbear]

I think we should just all relax. We need a good holiday, Roccman....a bank holiday, that is!

[roccman]

Bloomberg link

$this->bbcode_second_pass_quote('', '`')`Trades are contingent on a bankruptcy filing at or before 11:59 p.m. New York time, Sunday, Sept. 14, 2008,'' the ISDA said. ``If there is no filing, the trades cease to exist.''

[ColossalContrarian]

Lots of talk about rate cuts to "soften the blow"...

[Spanktron9]

Rocc in the 5 ring...again.