[jjwoodhull]

With the current conditions of companies such as Lehman Brothers and AIG, what will happen to our ecomony?

[excon]

Hello jj:

If these companies are allowed to fail, because they are indeed BANKRUPT, there will be some economic dislocations, but we'll recover.

If, however, the government continues to bail out Bushs' friends (the STOCKHOLDERS) with borrowed money, YOU and your grandchildren will be further burdened by debt that ISN'T yours and you DIDN'T bargain for. All the while, the people who are losing their houses go without help. When they're ALL foreclosed upon and on the street, WalMart and Burger King will have lots of new applicants, and we'll recover.

In the meantime, buy gold.

excon

[tomder55]

Lehman goes belly up and creditors sell off the pieces at bargain prices.There are winners and losers in our system. One person's selling their home for less than they purchased is one person who bought the house at a relative bargain.

It doesn't help when blusterers like Alan Greenspan calls this a once in a century crisis or Sen. Chuck Schumer opening his blow hole ,and helping out his short sell buddies by giving a chicken-little squawk about IndyMac which probably caused the run on that bank.

I'm glad there is no bailout being considered ,although I have been in favor of extending Fed Discount rates to investment banks like the commercial banks get.

I think Lehman Bros was poorly managed . You don't see Goldman Sachs or Morgan Stanley in the same bind.

[jjwoodhull]

I agree with both of you that they shouldn't be bailed out. Losing money is a risk we take in the name of Capitalism.

[tomder55]

Stocks took an early plunge this morning but are rebounding and today looks to be like any other trading day. The market will close down ,but it is not historic by any means.

It's a good time to have gold because the price is going to slightly rise due to India wedding season.

[Galveston1]

Ex, don't you think it is extreme to say that ONLY Bush buddies hold stock in any given company? If it goes bankrupt, I'll bet there will be a lot of small stockholders that will lose.

[tomder55]

You'll know Dems are running the store by the lack of hearing hauling Richard Fuld Jr ;CEO of Lehman before Chris Dodd's committee.

As a hint ;here is his disclosure of his contributions to political campaigns.
NEWSMEAT ▷ Richard Fuld's Federal Campaign Contribution Report

Obama has been a recipient of largess from almost every top Lehman exec.

Refer to this posting about Fannie and Freddie for additional information how the Democrats made the financial institutions their personal piggy banks and why there is no major call for investigations into malefeasance, and accountablility of all parties ,be they executives and principals of these organizations ,or corrupt legislators in oversight capacity.
https://www.askmehelpdesk.com/curren...ds-258796.html

[BABRAM]

When I see the campaign rhetoric on funding knowing that those in Washington with the longest tenures are the insiders, it's a joke to point fingers at each other, i.e. John McCain and Joe Biden. The fact is that it's not a Dem or Pub exclusion to the problem. The regulatory system has been in place since the 1930's and needs to be reformed. Deregulation, which is often a McCain mantra (the would be the Pubs), and permitting the old dilapidated system to continue (that would be the Dems) without reform will be the continuous culprit. Both candidates are understanding that now. McCain, now backed off his 'strong underpinning economy speech' (which was an outright farce) since the two financial titans succumbed yesterday, and Obama realizes the sub-prime is a helpful tool but can't be run a muck like the Dems and Pubs have in previous Congresses permitting it. Nobody is minding the school! We've all now witnessed the alternative in the past weeks of failed financial institutions. Regulations, that are good updated regulations are necessary, and need to be monitored to keep up with the times.

[tomder55]

Agree ;Regulations we have, although they are patchwork and in need of updating. What was lacking was oversight. Some of the sheep dogs were disguised as wolves. I want some accountability because regulations designed by the same ones who's fingers are in the cookie jar will not help.
I still say we need an independent prosecutor.AG Michael Mukasey should appoint one immediately .