Question of the day: What is happening to our nation's financial system?The bible tells us that the economy will be the mechanism that the antichrist will use to oppress and control the people. A free market will no longer exist. Since a free market exists now (marginally) but will not at the time of the antichrist, it stands to reason that a massive transition between capitalism and socialism must occur at some point. Since the nations' largest investment and banking institutions have gone belly-up since the start of this year: IndyMac,Freddie Mac, Fanny Mae, Bear Stearns, Lehman Bros., Merrill Lynch, and AIG........My opinion is that these facts show we are in that transition time now. Hence, a careful watch on the economy, national and global, bears keeping.
There's other news besides Wall Street and Ike, but this is enough to ponder for the day, don't you think?
Praise the Lord He is our refuge and our rock when all else seems unstable!
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The problem:Bloomberg: Lehman Files for Biggest Bankruptcy as Suitors BalkThe 158-year-old firm, which survived railroad bankruptcies of the 1800s, the Great Depression in the 1930s and the collapse of Long-Term Capital Management a decade ago, filed a Chapter 11 petition with U.S. Bankruptcy Court in Manhattan today. The collapse of Lehman, which listed more than $613 billion of debt dwarfs WorldCom Inc.'s insolvency in 2002 and Drexel Burnham Lambert's failure in 1990.
Lehman not the only bankruptcy overnight: Frantic day on Wall Street as banks fall In one of the most dramatic two 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, filed for Chapter 11 bankruptcy protection.
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 tens of billions of dollars in losses because of bad mortgage finance and real estate investments.
Consequences of Lehman's insolvency: Vancouver Sun: Global credit meltdown fearedU.S. investment giant Lehman edges towards bankruptcy, raising fears of financial chaosYORK - An attempt by top bankers and regulators in the U.S. to save a giant investment banker failed Sunday. Lehman Brothers was expected to declare bankruptcy overnight, causing fears of new chaos in the world's financial system.
In context of history:Greenspan: This Is The Worst Economy I've Ever Seen Former Federal Reserve Chairman Alan Greenspan offered a woeful outlook of America's economic situation on Sunday, saying the crisis with the country's financial institutions was as dire as he had ever seen in his long career, and predicting that one or more of those institutions would likely collapse in the near future.
The United States is mired in a "once-in-a century" financial crisis which is now more than likely to spark a recession, former Federal Reserve chief Alan Greenspan said Sunday. The talismanic ex-central banker said that the crisis was the worst he had seen in his career, still had a long way to go and would continue to affect home prices in the United States.
[Note, Greenspan is 82 years old, he has been alive & observing financial markets a long time]
And it's not just the US that's suffering financially:
(Bloomberg) -- U.K. stocks tumbled the most in eight months, led by financial companies, after Lehman Brothers Holdings Inc. filed for bankruptcy. ["RBS" is the Royal Bank of Scotland]
The venerated securities firm of Lehman Brothers Holdings Inc. announced early Monday morning on its website it will file for Chapter 11 bankruptcy protection, stunning Wall Street and rattling financial markets around the world. Not least among them was the Tel Aviv Stock Exchange, which opened with sharp losses as it echoed the news.
Asian stock markets fall on Wall Street shakeupAsian stock markets tumbled Monday as investors reacted with alarm to a seismic shakeup on Wall Street involving the bankruptcy of Lehman Brothers and the takeover of Merrill Lynch.
Wall Street on red alertWall Street on red alert Lehman says it will file for bankruptcy. Fed and 10 strong banks expand lending to weaker players. Plus: Bank of America and Merrill strike a deal.
NEW YORK (CNNMoney.com) -- After enduring one of the most dramatic days in its history, Wall Street received a climactic jolt on Monday when Lehman Brothers, a 158-year-old investment bank undermined by bad bets on real estate, said it will file for bankruptcy.
The fall of Lehman followed a wild, three-day scramble by top Wall Street executives and federal regulators who worked around the clock to come up with a solution to a still-unfolding financial crisis.
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NATURAL DISASTER, seas roaring
Ike cut a swath across the Carribbean and Gulf states. However, it also destroyed and damaged many homes in central US and Northeast. There are 5M without power in TX, 65,000 in LA, 1M in Ohio, half a million in NY, 25,000 in Ontario...I'd estimate that at least 7 million people now have now power and that means no sanitation, water, communications, or heating/cooling.
8 states are reporting deaths, and Labrador & Quebec just went on alert
One million homeless in HaitiHaiti's Prime Minister Michele Pierre-Louis has said that a series of storms may have left as many as one million Haitians without a home.
Texas faces largest blackout in its history in wake of IkeHurricane Ike caused the largest blackout in Texas history Saturday, affecting millions of people from Houston to Louisiana. Officials said it could take weeks to restore power, perhaps longer than in the aftermath of Hurricane Rita in 2005.
Over 2.5 million homes and businesses were affected, and the number of people without power is significantly higher. The Houston-Galveston area is home to 5.5 million people and covers an area bigger than New Jersey. The lights were out in most of it, except for downtown Houston, the medical district, and Bush Intercontinental Airport, said Terry Hadley, a spokesman for the Texas Public Utility Commission. The Beaumont-Port Arthur area, which has 300,000 residents, was also largely blacked out.
Wind storm leaves 1M without power in Ohio, at least 4 deadOhio (AP) - Authorities say at least four people have died in Ohio from falling trees and branches in the high winds from what was left of Hurricane IkeHeavy winds knock out power across CNYCENTRAL NEW YORK -- According to National Grid's website at the height of the storm there were more than 40,000 people in Onondaga County alone without power. Tens of thousands more lost power throughout the region as well.
Ike's fury keeps 25000 Ontarians in the dark"The blackouts are a result of high winds due to hurricane Ike," she said from the company's headquarters in Toronto. "We still have winds blowing at 50 to 60...
Remnants of Ike to soak Quebec, LabradorST. JOHN’S, N.L. — Ike has set his sights on southern Labrador. Environment Canada issued a weather warning Sunday for Labrador as tropical storm Ike makes its way north. Tropical storm Ike, which was over Arkansas early Sunday, was expected to remain an intense storm as it crosses Quebec and tracks along Labrador’s south coast today.
Oh, and
Olmert offers Palestinian Authority 98.1% of W. Bank
Prime Minister Ehud Olmert has discussed with the Palestinians transferring to them 98.1 percent of the West Bank, Channel 2 reported on Sunday evening.-----------------------------------------------------
Jesus is coming soon. Are you ready?"And when these things begin to come to pass, then look up, and lift up your heads; for your redemption draweth nigh."
Luke 21:28 (KJV)
