It is 9:58 pm eastern time 9/14/2008, Lehman Bros. is filing bankruptcy. Lehman employees on a Sunday night are trying to get their belongings out the building where they work. Merrell Lynch was forced to sell to Bank of America for $29.00 per share. AIG is looking for temporary funds from the Treasury to bridge their asset sales. There will be more. The SP futures market is underwater, and was down at tonight's open over 40 points.
I just heard on CNBS that 10 banks are to put up 70 billion dollars to make liquidity available. If my memory serves me JB Morgan, the mega investor/banker in 1907 did the same with many banks to have liquidity to stop a panic. He talked the market back and did this before there was a federal reserve bank.
If this really interest you and want to understand it better, you can read a couple of books by Robert Prechter, Conquer the Crash and At the Crest of the Tidal Wave.
Richard
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