Watch Out Below--Stock Market Ready to Tumble

[louis c]

Bank failings are leading to a huge downside on pre-market trading on Wall Street for Monday, September 16.

As of 8:30 PM Sunday, the futures market has the Dow down 271 points in the first half hour.

This link will bring to the up to the minute futures trading.

http://money.cnn.com/data/premarket/

[FreakinDJ]

1. Thanks Bush / McSame

[mrJJ]

3. McCain's gonna duck... err I was a POW

McCain & the GOP Screwed America

Gramm-Leach-Bliley Financial Services Modernization Act.

53 Republican Senators plus one Democrat - AYE

44 Democrats no Republicans - NAY

The Gramm-Leach-Bliley Act, also known as the Gramm-Leach-Bliley Financial Services Modernization Act, Pub. L. No. 106-102, 113 Stat. 1338 (November 12, 1999), is an Act of the United States Congress which repealed the Glass-Steagall Act, opening up competition among banks, securities companies and insurance companies. The Glass-Steagall Act prohibited a bank from offering investment, commercial banking, and insurance services.

The Gramm-Leach-Bliley Act (GLBA) allowed commercial and investment banks to consolidate. For example, Citibank merged with Travelers Group, an insurance company, and in 1998 formed the conglomerate Citigroup, a corporation combining banking and insurance underwriting services. Other major mergers in the financial sector had already taken place such as the Smith-Barney, Shearson, Primerica and Travelers Insurance Corporation combination in the mid-1990s. This combination, announced in 1993 and finalized in 1994, would have violated the Glass-Steagall Act and the Bank Holding Acts by combining insurance and securities companies, if not for a temporary waiver process <1>. The law was passed to legalize these mergers on a permanent basis. Historically, the combined industry has been known as the financial services industry.

...

Economist Robert Kuttner has criticized the repeal of the Glass-Steagall Act as contributing to the 2007 subprime mortgage financial crisis.<6> Economists Robert Ekelund and Mark Thornton have made similar criticisms, arguing that while "in a world regulated by a gold standard, 100% reserve banking, and no FDIC deposit insurance" the Financial Services Modernization Act would have made "perfect sense" as a legitimate act of deregulation, under the present fiat monetary system it "amounts to corporate welfare for financial institutions and a moral hazard that will make taxpayers pay dearly".

100's Of Banks WILL FAIL. The FDIC DOES NOT have enough liquid funds to cover the insured depositors. Of course the FDIC will go to the FED and get the needed money. Those funds Will NOT show up on the books as a deficit. The taxpayer gets screwed again.

"John McCain voted FOR the bank laws that led to the current credit crisis. John Mccain's economic advisor WROTE the law. 53 Republicans voted YES to the law. When you're in danger of losing your house, can you take a chance on more of the same from those who wrecked out economy?"

http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=106&session=1&vote=00105

[FreakinDJ]

10. I saved that on my computer

Just waiting for some RightWinger to say "Clinton" so I can beat him over the head with it

[halobeam]

35. I did the same thing.. both parents voting McCain/their entire income is stock dividends.

[PerfectSage]

2. Your link isn't working

http://money.cnn.com/data/premarket/index.html

Try this

Now it is.

[louis c]

15. Sure it's working, but thanks anyway.

[HCE SuiGeneris]

4. - 298 now n/t

[TahitiNut]

7. -314 ... and going.

:shrug:

[louis c]

14. Fed is talking to Banks, now minus 251. New deadline is midnight

The Federal Reserve is trying to put a tourniquet on this.

It's breaking news on CNBC, if you care to follow the crisis as one would follow a hurricane.

[HCE SuiGeneris]

24. - 321 after the buyout was announced

[justiceischeap]

5. Numbers, economics and me don't get along

What does all this mean?

[SoCalDem]

13. You loaned your brother $15K to buy a car..he wrecked it..had no insurance

and is trying desperately to sell it for 15K to pay you back :(

[sendero]

17. Pretty good analogy..

.... damn good in fact.

What has happened is that billions and billions of dollars of phony-baloney "money" based on housing prices that are dropping like a stone has disappeared into thin air.

The banks have been trying to hide this fact for a year, and various hide the salami games have been enabled by the Fed. But the jig going to be up soon, or eventually at least and the piper is going to be paid.

Exactly what that means to everyone is subject to debate, but people that I trust think we are headed for a deflationary environment (where cash is king, prices drop and times are hard) for a period of time followed by hyperinflation, as the US simply does not have the money to pay off its debts.

In any event, we are in for some sort of economic dislocation for many YEARS. Thank the stupid moron Republican "stop regulating bidness" players for this mess, it is mostly their, along with Alan Greenspan's, creation.

[justiceischeap]

18. Thanks! That helps. :) nt

[PassingFair]

22. From what I can gather.....

the Fed calls in all the major players...tells them that
it isn't going to bail out Lehman Brothers the way it
bailed out Bear Stearns...

Tells the players that THEY must join together to help
Lehman Bros....players decide that they don't WANT to
invest in Lehman Brothers if Bank or America or some
other company is going to reap whatever rewards will
come from buying out the carcass...

THEN, it DAWNS ON THE PLAYERS....IF the Fed will let
Lehman go down, it will NOT BAIL THEM OUT EITHER.

PANIC.

[LiberalHeart]

6. Bank of America has purchased Merrill. CNBC has a special on now about the whole mess.

[TahitiNut]

12. "Lehman prepared to file for bankruptcy after Barclays and Bank of America abandoned talks ..."

Lehman Said to Prepare Bankruptcy as Buyers Withdraw (Update1)

By Yalman Onaran and Craig Torres

Sept. 14 (Bloomberg) -- Lehman Brothers Holdings Inc. prepared to file for bankruptcy after Barclays Plc and Bank of America Corp. abandoned talks to buy the U.S. securities firm and Wall Street prepared for its possible liquidation.

Lehman and its lawyers are getting ready to file the documents for bankruptcy protection tonight, said a person with direct knowledge of the firm's plans. A final decision hasn't been made, though none of the other options being considered appeared likely, the person said, declining to be identified because the discussions haven't been made public.

Barclays, which had emerged as a leading candidate to acquire Lehman, pulled out first, contending it couldn't obtain guarantees from the government or other Wall Street firms to protect against potential losses on Lehman's assets. Bank of America withdrew about three hours later, according to a person with knowledge of the talks. Banks and brokers began consolidating trades in which Lehman is involved to minimize the impact of a possible bankruptcy filing tonight.

The U.S. Treasury and the Federal Reserve have struggled for three days to prevent the investment bank from failing before markets open tomorrow, people familiar with the situation said. With the two most serious bidders out of the picture, Lehman's options are few.

http://www.bloomberg.com/apps/news?pid=20601103&sid=axH8rBjWeJNc&refer=news

[BlooInBloo]

8. WHEEEEEEE!!!!!!

[tpsbmam]

9. How stupid are people in this country.....

there shouldn't be one fucking person willing to vote for McAddled & Palin. I feel sick.

[BlooInBloo]

11. People deserve what they vote for...

Unfortunately there's the rest of us, and the jackasses' kids.

[OmahaBlueDog]

38. They are stupid and self interested

Many Americans -- especially younger boomers and GenXers, take as an article of faith that a Democrat in the White House means they will pay higher taxes. Forget the fact that they supported the war, defense spending, corporate welfare, and the bailouts that cost the majority of this money and ran up our national debt-- they believe (again, as an article of faith) that if we'd

a) just stop handing out money to layabouts and illegal immigrants
b) leave education to the religous and private sectors
c) repeal most business regulation (especially whatever happens to cost their business money)
d) levee a fair tax (read: national sales tax) and repeal the 16th ammendment so the productive can prosper and the poor can pay their fair share.
e) End the Ponzi schemes called Medicare and Social Security

It is an ownership society -- if you ain't rich, you're on your own.

[Name removed]

16. Deleted message

Message removed by moderator. Click here to review the message board rules.

[tannybogus]

19. Pray that people don't panic!

Tomorrow could be interesting for a lot of reasons. It will not just be the US if something happens.

The whole world will be one huge clusterfuck.

[fla nocount]

31. Just putting off the inevitable...bring it on, the sooner the better.

Those with marketable, barterable survival skills will adapt and create a sub-economy. Bring it on, the strong and skilled are not afraid, apprehensive but not afraid.

Straw houses collapse by design...bring it on, it will give true meaning to the intellectual twittery referred to on this board as "Darwin Awards."

[CatholicEdHead]

20. Asian markets already 1-2% down

At least the ones that are currently open. A few more will open pretty soon.

[louis c]

21. There's some Asian holidays that have closed some markets

I don't know which ones.

[CatholicEdHead]

30. I think China, Tiawan, and Japan are on holiday on Monday

Which makes tomorrow even more interesting when they open Monday Night ET/CT.

[undeterred]

23. Is this the "trickle down" effect?

:hide:

[louis c]

25. Over minus 315 at 11:00 PM. Fed to make statement at midnight

[Duer 157099]

26. WTF?? Monday is the 16th?? Where'd the 15th go? n/t

[louis c]

28. Missed that one, too late to correct, sorry.

[wtmusic]

27. I've already got my food and ammo from the last time the sky

was going to fall

:thumbsup:

[OmahaBlueDog]

29. They'll find a buyer for Lehman Bros, and then Ben B will print more money and loan it to them

..because that's the Republican way -- privatize the profits, socialize the risks.

[nadinbrzezinski]

32. Lehman is gone, period

[OmahaBlueDog]

33. Not so fast, sir

http://news.yahoo.com/s/ap/financial_meltdown

<<Lehman Brothers may be forced to seek an orderly unwinding of its businesses. All potential buyers walked away after the U.S. Treasury refused to budge on its refusal to provide any takeover aid, as it had done six months ago when Bear Stearns faltered and earlier this month when it seized Fannie Mae and Freddie Mac.>>

What that tells me is that all the potential buyers haven't received enough incentive from the Fed to make a purchase. Bernanke will make callbacks before the bell and sweeten his offers.

[nadinbrzezinski]

34. The feds ain't helping

Balrclays walked away

The Korean Group walked away

BOA took Merrill since it was a better bet

So yes, it is that fast

Their debt is so stinky nobody wants it

It is bellow junk bonds

So the orderly means bankruptcy court

[MetaTrope]

36. Can we privatize Social Security now?

That should funnel a few more bucks into the CEOs' pockets before they move to Tahiti.

[NutmegYankee]

37. We are in the peasant seats of Globe Theatre.

Look out below indeed. Because the "Nobels" felt the sudden urge to urinate, and it's gonna trickle down!