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Epic Fail

September 15, 2008

Not to be dramatic, or anything, but what the heck is going in our economy? In the past week there have been some ENORMOUS and frightening changes to the financial structure of America. I am not pointing this towards political parties or anything; I would just like to see what every one’s thoughts are on it. I have read a few articles speculating that America is approaching another “Great Depression”. Some of the events I am referring to:

 

Fannie/Freddy

Lehman files bankruptcy

Merrill Lynch gets sold

Fed Reserve broadening “emergency funds”, putting American taxpayers at risk

 

“My goodness. I’ve been in the business 35 years, and these are the most extraordinary events I’ve ever seen,” said Peter G. Peterson, co-founder of the private equity firm the Blackstone Group, who was head of Lehman in the 1970s and a secretary of commerce in the Nixon administration.

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8 comments

  1. This is the kind of thing that would have caused an uproar at my old job. So glad i quit.


  2. I could imagine! 613 billion dollars. the biggest chapter 11 EVER


  3. Josh,

    The Economist, hardly a lefty rag, wrote a wonderful article on this whole mess: http://www.economist.com/finance/displaystory.cfm?story_id=12231236&fsrc=rss


  4. interesting article. There is stuff all over the drudge report as well.


  5. Joshy Woshy, those of use reading Calculated Risk (calculatedrisk.blogspot.com) have been expecting this and more for a while. Tanta and CR do a great job of breaking down what’s happening with the mortgage markets, and the broad markets in general.

    Another good person to look at is Meridith Whitney – she is an analyst for Oppenheimer and called the meltdown sometime last year – received a few death threats for it too. We should keep in touch a little bit more. Drop me an e-mail sometime.


  6. ryan! I miss you man! I will pop you an email. Thanks for the insight.


  7. i look at it like a storm:

    a storm is a drastic effort of the atmosphere to regulate itself. it can cause a lot of damage if it is drastic enough, but in the end, things are stable, and usually sunny and mild with highs in the low 80s.

    this is a drastic effort of the market to regulate itself. some really big businesses made some really bad business choices. my opinion is to let them burn for it. we, the people, are going to feel it, yes. but, that’s our lot for not being responsible with our market to keep these companies in check.

    responsibility: the cross and delight of living in a society.


  8. well said, x



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