
Yesterday marked history on Wall Street. And it isn’t good.
Lehman Brothers filed for bankruptcy, after 158 years of being a top investment bank on Wall Street. This came after real estate and mortgage investments went sour, and although they tried to get someone to buy them out, no one wanted them. Instead Bank of America had to buy something, so they snatched up Merrill Lynch (in service for over 90 years) for a mere $50 Bill. Oh yea and $50 Bill in Wall Street is like saying you bought a Gucci Bag for $50. You know it is worth so much more, but you got it at a really good sale, and you know the price won’t be going up anytime soon.
I heard the shocking news yesterday morning on my commute to work. My mom called me at 8:30 in the morning; she never calls me that early. I actually expected the worse, and I thought right away terrorist attack. Thank goodness I was wrong, but the news she gave me wasn’t great.
Convo went something like this…
Mom: OMG I have some news to tell you…
Me: What’s up?
Mom: Lehman Brothers filed for bankruptcy yesterday
Me: That’s crazy
Mom: Bank of America was supposed to buy them out, but they changed their mind at the last minute. They bought something else instead…
Me: Okay??… What did they buy?
Mom: Merrill Lynch
Me: WHAT?? I didn’t even know they were that bad…
Mom: I know I am shocked…
So that began my Monday morning. The entire day it was the talk of the office (I work in Finance, so this hits close to home). And the first thing that came to everyone’s mind? Holy effin crap, we are all screwed.
Unfortunately, I have a feeling that things are going to get a lot worse before they get better. And with dumb and dumber running for President, looks like D-E-P-R-E-S-S-I-O-N is going to be the slogan for 09….