The 6 a.m. bell sounded on Wall Street this morning as a toll to
mark the demise of two major financial institutions: Lehman Brothers filed Chapter 11 bankruptcy, and Merrill Lynch struck a deal with Bank of America for an all stock buyout. The shock has rocked markets worldwide from Europe to China, Turkey to India. According to reports, that leaves Bank of America, already thinned by the Countrywide buyout earlier this year, and Citigroup as the two banks left capable of aiding the now ailing AIG. "It's clear we're one step away from a financial meltdown," said Nouriel Roubini, chairman of the consulting firm RGE Monitor.
The good news: Oil is now down to $93 a barrel. With the tension with Venezuela, a major supplier of US oil, it's unlikely that we'll see much relief at the pump.
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5 comments:
So much for Red Monday... we lost everything on Black Monday, so there's nothing left, but it looks like people are scooping up some bargains today...
Yeah? I doubt it will make up for the near panic that, if left to spiral, will mean a run on all financial institutions...
Oh, the only stock I would even consider buying is Exxon. LOL
This is pretty bad. I wonder who is going to be the next one to make the news tomorrow.
Goldman Sachs and Morgan Stanley both fell today, along with Dell. More stocks fell than rose by 3 to 2. It's shaky, that's for sure.
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