Thread: In Frantic Day, Wall Street Banks Teeter

People carried boxes out of the headquarters of Lehman Brothers in New York on Sunday


http://www.nytimes.com/2008/09/15/busin ... ref=slogin

In one of the most dramatic days in Wall Street’s history, Merrill Lynch agreed to sell itself to Bank of America for roughly $50 billion to avert a deepening financial crisis, while another prominent securities firm, Lehman Brothers, hurtled toward liquidation after it failed to find a buyer.

The humbling moves, which reshape the landscape of American finance, mark the latest chapter in a tumultuous year in which once-proud financial institutions have been brought to their knees as a result of hundreds of billions of dollars in losses because of bad mortgage finance and real estate investments.

But even as the fates of Lehman and Merrill hung in the balance Sunday night, another crisis loomed as the insurance giant American International Group appeared to teeter. A.I.G. sought a $40 billion lifeline from the Federal Reserve, without which the company may have only days to survive.

The stunning series of events culminated a weekend of frantic around-the-clock negotiations, as Wall Street bankers huddled in meetings at the behest of Bush administration officials to try to avoid a downward spiral in the markets stemming from a crisis of confidence.

“My goodness. I’ve been in the business 35 years, and these are the most extraordinary events I’ve ever seen,â€

Gee if this keeps going on with buy out after buy out maybe they will all become one big company. Isn't that against the law? I know, what law.

Originally Posted by agrneydgrl

Gee if this keeps going on with buy out after buy out maybe they will all become one big company. Isn't that against the law? I know, what law.

We know darn well that the laws are there to harass American Citizens, to keep us in line. The greedy corporations and the massive flood of illegal invaders are exempt from any laws. But I know that you already know that agrneydgrl.

This is very scary -

It is also something that was discussed for a few years now. Yet anytime anyone mentioned the economy being iffy, they were soundly trounced by the supporters of this administration.

I don't know a thing about financials, but it has looked like a house of cards for a long time to me.

The outcome of the mortgage fiasco was apparent years ago, but no one wanted to hear.

Maybe we will be able to keep it together.

Maybe, just maybe, the illegals will go home - I won't hold my breathe for them to be sent home.

Is it too late for the Fed to go back on their Bear Stearns bailout? That was a really bad precedent, we need to get our money back from those crooks!!

But it does seem some of the Globalists are finally finding out what Globalism has already done to many Americans, and it's not pretty.

Let them all crash!

I'm starting to think about taking out our 401K money, If would have done that last year the 40% we've lost would have paid the taxes for an early withdrawal. At this rate the money could be wiped completly out!
I better get out now or either change to oil stocks, that seems like the best bet, or buy gold with the money.

The government bails them out and while WE pay the bill, we also get socked with the higher interest rates that come along later, we pay on every end yet again! The very ones bailing them out can't get a decent loan!

I say every American should get stock certificates, why hasn't this been brought up at all? If the government was bailing out the government they would issue bonds in which the bond holder recieves a certificate and interest on those loans, isn't this the same thing? The only difference here is we pay and get nothing but guarenteed higher prices in the future. And those that do own stock in these companies are getting subsidized by the tax payer, so we are entitled to stock ownership of these companies since we are basicly purchasing and contributing to the worth of the corporation. These bail outs are nothing more than government stealing from the tax payers to give to the corporations which serve a different agenda than the tax payers they are stealing from. All these bailouts are is a theft of billions of dollars from the American people to the corporations, it just buys them time to move their stock instead of losing their asses and going completely broke.

This is the same kind of thinking the financial guru's blast the American people when they do, a 6th and 7th refinancing of their debt to try and save face and HOPE that they can turn it around and make a profit, but the American People have far more to lose than they have to profit or benefit the American People, after all, The Investors (us) will be penelized with higher interest on their loans in the future. What investor would invest in a company that sucks them dry with higher fee's when the purpose of investing is to get lower fee's and make a buck?
Only stupid investors.

Notice how all these financial guru's that are losing their tails have been in former presidential administrations? And I'm sure no matter how much the company they are running loses or even if it goes under, they will still see millions in paychecks. Something sure looks fishy!

Chexfive

Something has smelled for a very long time.

Is it possible, the mortgage, housing boom, etc., was a planned deal?

Is it possible, 'the group' got together and with the help of the government, the media, helped create a frenzy, enabling them to make billions. They, then got out before the bottom fell and left us holding the bag?

A little like the crazy days of real estate in the 80's. There was some law in effect that concerning depreciation, I think. Many large buildings were sold and resold many, many times. I saw a man interviewed who said he had seen a building sold 5 times in 30 minutes - each would be able to benefit from the laws.

Did the politicians send their good buddies in to pillage these companies - then we bail them out?

NNTRIXIE,

This is what happened in my opinion.

I think there was sort of a NWO plan and I think it began with illegal immigration, they came here by the millions, they needed somewhere to live, people that had starter houses or wanted to move up saw they're area being swamped with illegals, rental houses became hard to find,
the rents then rose,
the people saw they could rent their house for way more than their payment and rented for more than the payment,
They then bought another bigger house either using the equity in the rental house as collateral for the down payment in the house they where buying or,
as many people were renting they're homes and looking for their better house to buy, those prices went up as well, and so those people sold or rented higher and they looked for an even better house than they had,
it all rippled upstream, and it just got bigger and bigger and bigger.

Remember Carlton Sheets? You know the guy that tells you how to buy real estate with no money down? Remember when he had a infomercial on 3 or 4 channels every night selling his "How to make millions with no money down" system?

Well, the system worked but only as long as people could keep paying the payments, which means the people making the payments had to keep making money doing a job.
The thing is as we know the incomes of Americans dropped due to the illegal immigration which was planned by the NW O, we know this because it can't be shear coinsidence the same massive migration could be going on in so many different countries at once, which is unprecedented, so, it was planned by somebody, and of course other evidence of this is, the countries where it is going on, the politicians have done nothing to stop it where as before now it was a huge deal when it went on.
,And even though the MEDIA and POLITICIANS want to say that incomes have only dropped 2 to 3%. the fact is in many jobs the income has dropped as much as 50% where heavy illegal hiring has taken place. Once you have a loan, it doesn't matter if your income gets dropped or not, your mortgage doesn't adjust to your income, so by the time your income has dropped, then you can't get the new refinancing loan, because you don't make enough money now, and you can't make the payments because of the lower income and then of course everything else is going up as well which puts you in a much harder position.

Of course you know all this.

Another thing you may not know is....
When all this owner financing of homes started going on ( I was doing some real estate investing myself 4 years ago ) the banks got mad because they saw alot of people owner financing which means they were being cut out of the loop and they were mad because they were loosing money on what could be potential loans,
they even had legislation being brought to pass law against owner financing when the person on the original loan hadn't pay off the laon to the bank. In other words, they wanted you to pay them off before you could re-sell the home under owner financing becuase if the bank was still holding the mortage, technicly you weren't owner financing, you were just sub-selling while the bank still owned the property.
In a way I think it was good and then it was bad as well.

It was good because people that had no credit or verifyable income could buy a house, if they didn't pay then the Owner financer was on the hook and acted as a barrier between the sub buyer and the bank, and the owner financer still had to make the payments to the bank even though the sub buyer might have defualted to the owner financer, the bank was sort of protected in a way.

Now, since the owner financer usually stepped up to a larger house with a larger payment after he owner financed his previous house (for more than the payments he owed), if the sub buyer couldn't pay, then it wouldn't be too long before the owner finacer was going to be in financial trouble because he now had 2 house payments to pay and plus he was out the extra income from the higher payment he was charging the sub buyer.

The banks got mad about this but they recieved alot of sales from this because they financed the People that were sub selling into bigger homes which they made a load of money on, for a while at least.

Well, we all know wages went south, the 40 million illegals came in and crashed the jobs market,
which crashed the paychecks,
which crashed people being able to pay the payments,
which then crashed the banks,
which then crashed the total economy.

Alot of the owner financers didn't do the proper checks on people, and I myself would never have rented or owner financed a house without a very good income verification and verifyable work history.

As I was investing I belonged to several real estate investor groups and there were many, many people who thought they could just make deals and make thousands instantly. I went to real estate auctions where people would get into a bidding frenzy and bid more than the home was worth. Many of the foreclosed homes then and now need so much work done to them that after the home is completely repaired or brought up to date it is not a good deal at all. As a contractor I knew how to price the repairs and could inspect, find and figure out what it would really cost to fix the houses (99.9% of the houses need some work) but others getting caught up in the flipping game didn't realize the "actual" cost of fixing the houses up and after they were done many had more money in the house than it was worth and many people under estimated the repair cost so badly they ran out of money and couldn't fix them up which means they would have to sell for a loss just to get rid of it. I was really amazed at how many people that didn't have a clue about financing, owning or repairing houses were doing deals for 1, 2 and $300K. These are the people that were the problem. You have a $200K house and suddenly find a $10K problem and you don't have the money, your in trouble.
We always deducted $10K from our offers just in case something popped up which happens alot because most times the houses have been sitting a long time and things don't work after a while of sitting.

So, I think it all started with the NW O plan of illegal immigration, after all they knew people were going to need a place to live,

they knew it would drive up the price of housing,

they knew people would see an opportunity to house the illegals and move up, or use the increased equity to buy a car or another house, this is nothing new, this has been going on since real estate has been bought and sold.

they knew these people renting to the illegals would rely on the illegals and therefore be an advocate for them in order for themselves to move up,

they knew the wages would fall because of the illegals and because of legal immigration increases and outsourcing, this is what killed the real estate market, not people refinanacing and using the equity to buy things, what killed the market was the lower wages and stagnant wages caused by the 40 million illegals and the rising costs of keeping the illegals here, otherwise people would still be buying houses if the wages were keeping up with the cost of living.

they knew the housing prices would be inflated due to the massive illegal intrusion and that it would be matter of time before the wages would drop which would cause people not to be able to afford the payments, once the lower end couldn't pay their rent or owner financed payments, then the resposibility would then be passed on the the owner financers (middle class) which had a lower paycheck and 2 house payments.
Once they could not pay, it was all over.

I think another part of this plan is to try and say the value of these homes is way lower than they are, you can value a stock but until you sell it, its speculation, it could be higher or lower and I think they are taking the highest losing speculative figures to cover their tales. Remember banks always cover their losses and then some.

The banks try and make people think that houses only last a few years when they are one of the few things around that last for 100 years. What has killed them is they have over spent with lavish lifestyles and offices for themselves. They continue to spend millions upon millions on TV advertisements and outlandish upper management payouts.

Look at Lehman Brothers, all the headlines started with "Lehmans, 150 year old company going under" Well, where is all that money they made over the last 150 years? I think alot of this is contrived for the MONEY MASTERS of the world to make trillions of dollars. I mean $85 Bln is chump change to some of these rich families of the world, they have trillions. I think its all about controlling everything myself, nothing but greed and eliteism.