Community | September 16, 2008 | 9 comments

Markets slammed by Lehman collapse

source: http://therealnews.com/t/index.php?option=com_content&task=view&id=31&Itemid=74&jumival=2335

Vierotchka
Dow drops more than 500 points or 4.5 % as investors panic after Lehman Brothers files for chapter 11.

US stocks were slammed on Monday after a stunning upheaval on the Wall Street landscape. The Dow Jones fell more than 504 points or 4.42 percent, the largest one-day drop since September 2001. This as investors reacted badly to a shake-up of the financial industry that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co. Lehman Brothers, which had 60 billion US dollars in soured real-estate holdings, filed a Chapter 11 bankruptcy petition in court after attempts to rescue the 158-year-old firm failed. Employees started to clean out their offices in New York on Sunday night. About 26000 Lehman Brothers employees lost their jobs worldwide. Another Wall St. icon Merrill Lynch was snapped up by Bank of America in a 50 billion dollar all-stock transaction in what was essentially a forced sale. Merrill Lynch was said to have 80-plus billion dollars of risky asset exposures. The disappearance of the two firms could mean the loss of up to 50,000 jobs in the financial sector. That industry has already lost 100,000 jobs since the start of the credit crisis a little more than a year ago.

Doug Henwood is the founder and editor of the Left Business Observer.
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9 comments // Markets slammed by Lehman collapse

  • bubl_415
    • 0
      bubl_415  

    • The American people can remain confident... ha ha yeah right. We think things are bad now, it is going to get much worst. I'm basing my opinion on pure instinct not what our government wants us to believe. Prepare yourself people....

    • 3 years ago
  • regjoeschmo
  • Walks_in_Storms
  • jubal
  • jjmaster
    • 0
      jjmaster  
    • Walks_in_Storms:

      Well Jubal... If all of the stuff is for real that I have learned on Current, I'd expected some shock doctrine tactics... about now! Things are not good right now for the peoples of the earth. Reformation is needed. Don't forget to view the stars... we have not lost sight of them, at least. Overwhelming.

    • 3 years ago
  • jubal
    • 0
      jubal  

    • Its been all the buzz in the office, everybody running to see the impact on their 401K's.

      This is just the tip of the iceberg, the avalanche is coming especially since the Feds have decided NO MORE BAILOUTS.

    • 3 years ago
  • pokesmot
  • ProgressiveBum
    • 0
      ProgressiveBum  

    • The chickens are coming home to roost. All non-government companies that engaged in gauging consumers must be allowed to die an unceremonial death. Any bailouts are a poke in taxpayer's eyes. The US economy must clear out its rotten underbrush in order to rebuild on a sound foundation of fair regulations. No use crying over spilled milk.

    • 3 years ago
  • Virtual_Will_Rogers
    • 0
      Virtual_Will_Rogers  

    • ......and Moses turned to see a burning Bush.....and a voice was heard.....watch out.......this Bush is going to destroy the world.......do something to stop it.....
      Golden Ruler...Will.......

    • 3 years ago
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