>This is not going to be pretty

>It’s not even going to be homely.

When I first heard about Lehman Brothers filing for bankrupcy, I have to admit that my first thought was one close to indifference. (Sympathy for the workers, little for the management.)

Well, comrades, this is going to hit us all, especially when you add on Bank of America buying out Merrill Lynch.

I found this BBC News article a good read.

I would add that the ultimate culprit in all of this is basic greed: People thought they could use their homes as ATM machines so that they could keep up with the Joneses, and the financing companies who eagerly enabled them to do so.

And our national budget is such disarray that another bailout–no matter how necessary it is–might not be possible.

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4 comments

  1. Anonymous · September 15, 2008

    >japan went through a similar problem in the mid-90s (liquiditiy problems brought on by the popping of a real estate bubble) and it’s still trying to recover.

  2. Anonymous · September 15, 2008

    >japan went through a similar problem in the mid-90s (liquiditiy problems brought on by the popping of a real estate bubble) and it’s still trying to recover.

  3. Anonymous · September 17, 2008

    >The greed is not on part of the home buyers who went for deals they thought they could live with, it is with the housing bubble creators. Same as in the late 80’s.Turns out debt is one of the best businesses around and the old bank takeover ploys from the 20’s still work great. Give out cheap loans and call them in. Mobster tactics really although it’s called deregulation now and the dons are WASPS. (but then they have been for the last 500 yrs haven’t they..)

  4. Anonymous · September 17, 2008

    >The greed is not on part of the home buyers who went for deals they thought they could live with, it is with the housing bubble creators. Same as in the late 80’s.Turns out debt is one of the best businesses around and the old bank takeover ploys from the 20’s still work great. Give out cheap loans and call them in. Mobster tactics really although it’s called deregulation now and the dons are WASPS. (but then they have been for the last 500 yrs haven’t they..)

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