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historic times

September 15th, 2008 at 04:26 am

Tomorrow will make fiscal history on Wall Street. Lehman Brothers will declare bankruptcy; Merrill Lynch will be bought out by Bank of America.

How this credit crisis is unraveling is unprecedented by the non-tin hats among us.

The asteroid has fallen, the dinosaurs are fighting or gasping their last. Its up to the mice to find their safe, deep holes and wait things out.

6 Responses to “historic times”

  1. Broken Arrow Says:

    Weeeeell, I'm not going to sit here and say, "Aw, it ain't that bad!" but seriously, is there anything surprising here? I don't think so. In fact, I'm kind of surprised that more didn't drop. Maybe they will soon.

    The financial sector isn't dead. However, it may be undervalued from the panic. I'm hoping that's the case, because then I'm definitely going to buy in tomorrow.

  2. merch Says:

    I agree baselle. Let's see where things shake out.

    I have my list of stocks and we will just have to see where they fall.

  3. gamecock43 Says:

    Well I hope everyone jumps in now that everythings down...but in reality I am closing my eyes (and ears)ducking my head and hoping when I look around again its 3 years from now and things are better.

  4. baselle Says:

    BA - no, it really isn't that surprising. What we are seeing is a good old bank run on the diversified financials, but done electronically and with short selling. These guys are all in debt up to their eyeballs and the stronger ones are calling each other on it.

    Frankly, while its painful to see, it has to be better than how Japan handled a similar situation back in the 90's. Their banks kept the bad RE debt on their books and waited...and waited...and waited for those assets to inflate. They are still waiting.

  5. baselle Says:

    FYI, BA - the next few days are going to be a sucker's rally. I'd wait it out a couple of days to see the new patterns. Time to figure out your charts and candlestick indicators.

  6. Broken Arrow Says:

    Thanks for the warning baselle. Your right, of course, that the charts are not going to make any sense right now. In fact, I wonder if there WILL be another freak rally (but your description of a "sucker's rally" is more accurate). I don't count on it, and I haven't even seen a trigger for that yet.

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