Monday, September 15, 2008

The Meltdown

The fire is burning in Wall Street and engulfing one investment firm after another. It seems so much like a raging forest fire which can not be controlled till it burns deep into the financial firm's assets and individual's pockets. As all man made crisis, this was created by man himself through his greed. The fall of the Titan - Lehman can also be accounted as greed. While no one took an extra step to pull it through, they are ready to bid on cheap assets to see if they benefit by it at a later time.

All this news has left me in disbelief. Too many things happened over the weekend, shaking the Wall Street to its core. I feel sad for a firm which was able to pull through 3 or 4 crisis in its 158 years regime but had to succumb to the sub prime mortgage crisis. Actually it could have been any firm, it is unfortunate that it had to be Lehman. I wonder if there could have been any other alternative. Government did not back them up as taxpayers have already incurred enough debt from Bear Sterns, Fannie Mae and Freddie Mac . All agree that this is one in a millennium crisis and rules of crisis are different from the norm. Could a pool of money from all the giant firms and individual investors like Warren Buffet helped in keeping the company afloat? Of course, with so many players potential of falling along the way, the possibility of rescuing each one of them is bleak. What ever it is, Wall Street doesn't seem to have the same ring in its name - the buzz is gone.

8 comments:

ceedy said...

It is tough times....feel worried....why are we working and what will be the future?

--xh-- said...

when I heard the roomers doping rounds, I never thought it will come to reality. Only copule of days back I met a friend and he was telling very proudly that his brother is now working for lehman... the fall of giant will ahve lot of repercussions- I hope the crisis will pass soon... but now the whole scene indeed looks bleak...

Suma said...

:(

wonder what will happen ahead?

ceedy said...

suma...it is already happening...as you wrote this comment...I am listening to the news...and AIG is on the verge of filing bankruptcy....if not bailed out....

the heat is really ON

Joy said...

Ceedy, AIG is bailed out. We have to watch out for Washington Mutual and Wachovia next...

ceedy said...

Yes saw it....get ready now to pay higher taxes....where is the 82 b going to come from

and isnt it sad...they have actually forgotten texas's devastation

Sumana said...

Exactly it is surprising and really sad to hear that such big, old companies are filing for bankruptcy. But what is more surprising is a report that said that they had the best of MBA's and investment bankers with the best of salaries from harvard and the lot. It seems to be largest US bankruptcy ever.

Prats said...

Sad, that such things happen...just wonder when it will improve.

Hey...and got you tagged...cmon on over and check it out