September 14, 2008

Tomorrow could be hella bad UPDATED

Item one, Lehman Brothers buyout talks break down when Barclay's balks at assuming Lehman's counterparty risk without a backstop. Broker/Dealers are already working on settlements of Lehman trades in preparation for the firms liquidation Monday morning.

Item two, Bank of America is in advanced talks to buy Merrill Lynch.

My prediction? Hold on to something... this could easily drive down the indices by 5-10% tomorrow.

UPDATE - 10:50 PM

AIG is now requesting $40 BILLION in liquidity from the Fed. So far this year, AIG has raised $20 billion.

Posted by mcblogger at September 14, 2008 10:56 PM

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Done and done. Lehman's filed 11, and Merrill Lynch is sold. Dow's down 4%, everything else a little more; international markets all also down 3-4%, and WTF oil down under $100?! The sky really *is* falling.

Posted by: George Nassar [TypeKey Profile Page] at September 15, 2008 09:09 PM

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