Lehman Brothers files for Bankruptcy

leaskovski said:
Why are people so happy for this to all go wrong? "Yeah lets hope the financials all go down in flames" Yeh, lets hope :rolleyes:
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Because if you're in a secure position and others are losing wealth etc.. then you stand to benefit - I work in the city, my job is pretty secure and I'm not a home owner - Yes it is selfish but I'm really not bothered by a couple of bank failures, few more people moving out of the industry/losing jobs and a nice drop in house prices because in a few years time when(if) it starts to recover I'll be in quite a nice position.
 
My brother had been out of work for a year and started with Lehman a few weeks ago. He's now unemployed again.
 
Feek said:
My brother had been out of work for a year and started with Lehman a few weeks ago. He's now unemployed again.
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If he was anything like you and used a different font to everyone else, he woulda got sacked anyway ;)
 
bmzk1
I don't get how a company with assets of almost $700bn, a revenue of over $60bn and a net income of $6bn can go bankrupt in such a short space of time? I guess I don't understand this stuff at all! haha!
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Fundamentally many idiots made many many bad decisions with investing money! That's the short story anyway. Regretably many more are paying for those decisions with losing their job.

Many people here seem to want to go into this industry - why? I have a friend who works with Citigroup working oil futures and investments, a little different from Lehman but many things are the same especially the mentality and the working hours. Yes the money is great but he has to be in the office for 5.30 AM and gets home around 8 PM on a good day the stress is high and the burnout rate must be huge - it must be me but I just don't get what the buzz is all about - hell there aren't even trading floors these days - you just get to stare a 4 screens and shouting down the phone - great!

AIG won't go the sameway and will get plenty of funding from the Fed in the States if it goes down then the **** really will hit the fan. It looks like they have got hold of $20bn http://www.ft.com/cms/s/0/abaf3dee-834d-11dd-907e-000077b07658.html So Doomsday isn't here yet?!

Fully star out swearing
 
One of the reasons some people are happy about the end of the biggest credit bubble in history is that, after the pain, there will be an increase in quality of life.
Why should 30 year olds be forced to live apart from their partners with their parents because they can't afford a home thanks to cheap, easy credit which has inlated price beyond all control?
Why should a 50 year old man have to take out a 25 year mortgage to buy a pokey one bed riverside flat??
Why should people spend 70% of their take home pay just to service a mortgage?

It was all so obviously flawed. Thats hindsight though I guess.
 
The banks are completely culpable for the current cirsis as our the Government institutions that are supposed to police them.

They lent far too much money to people who couldn't afford to service that debt, they also lent on an variable asset which can fall in value, not just rise. They basically bet the farm on black and it came up red causing the current crisis.

Here are a couple of simple rules that would have ensured we never got into this problem in the first place.

1. People shouldn't have been allowed to borrow any more than 3.5 income.
2. People shouldn't have been allowed to release equity from their house.

The Government shouldn't have been allowed to peddle the lie that we had low interest rates, we've never been worse off as the amount we've had to borrow has never been so high!

Housing needs a big correction, the Government shouldn't prop up the inflated property prices.
 
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