so, what's with the wall street chaos?

[metaphorge]

I don't know how many of you have been following the recent stories of the implosion of several titans of the U.S. financial services industry (Merrill Lynch, Lehman Brothers, Bear Stearns) and closely related industries (Washington Mutual is in severe trouble and is putting itself on the auction block, and the Federal Government just bought a 79% stake of American International Group, one of the world's largest insurers, to keep it from going under).

This is an excellent article on many of the reasons why this has all happened.

While you're at it, knowing the skinny on the subprime mortgage crisis in general is not a bad idea, and this article is pretty good overview of the sequnce of events.
And yes, this should matter to you.

Comments

[nora-knickers.livejournal.com]

I feel sorry for my mother who pretty much lives off investments. gods, I hope she doesn't end up homeless.

But aside from feeling sorry for those fucked over with the comfort and aid of the government who is (theoretically) there to protect them, I can't help but laugh at the farce.

[stoneself.livejournal.com]

math is hard.
let's go shopping.

what?
that didn't work?

[elric-dewisant.livejournal.com]

Personally, I think that WaMu will fail in a matter of days, if not weeks.

I picked *PERFECT* bloody time to join the 21st century and get a damn bank account.

*sigh*

[ranger-rick.livejournal.com]

The biggest problem with Wall Street people is that *THEY* make tons of money even if they bankrupt the economy. Sure, their money will be worth less if that happens, but they will still be rich by any standards. The head of Lehman Bros made something like a cool half billion during his stint, what's he care about what he's done?

[radarlove.livejournal.com]

According to a poll I saw tonight, 71% of people think that this is going to "lead to a depression at least as bad as the Great Depression."

You could try to dispatch that by saying that those people are just being pessimistic, but if that many people are pessimistic it means that investor confidence is WAY down which means that the market is going to tank even further. Unstoppable and exponentially self-fulfilling prophecy. We're fucked.

*sigh* And THIS is why the wife and I keep all our money in a coffee can.