Lehman files bankruptcy, Merrill Lync...

Lehman files bankruptcy, Merrill Lynch sold

There are 48 comments on the Connecticut Post story from Sep 15, 2008, titled Lehman files bankruptcy, Merrill Lynch sold. In it, Connecticut Post reports that:

A failed plan to rescue Lehman Brothers was followed Sunday by more seismic shocks from Wall Street, including an apparent government-brokered takeover of Merrill Lynch by the Bank of America.

Join the discussion below, or Read more at Connecticut Post.

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Goldbug

Yonkers, NY

#41 Sep 16, 2008
John C wrote:
<quoted text>
What difference does it make. Gold is no longer recognized as money except that it can be traded for money on the open market, and it fetches a good price too.
Gold is money, paper is a promise.

Let me ask you a question - would you rather have an ounce of gold in your hands today or $782.10 current spot price for gold in cash?

How about an ounce of gold in your hand in a years time or that same $782 same time next year cash in hand?

If you chose the gold, you're agreeing with me that the VALUE of gold doesn't change but the amount of fiat dollars to purchase it does.

If you'd rather have the cash in hand next year, I wonder what you could buy with $782 then? That could be 3 supermarket trolleys of groceries by then.
Unreal

United States

#42 Sep 16, 2008
I wonder how Jon C pays his bills. I wish I could live in his fantasy world where everything is paid by credit. No wonder this country has run up such credit debt and is now faltering. Wake up Jon C, eventually the "credit must be paid, and that payment has to be made with cash to cancel the debt; or in your world, it just continues to perpetuate itself.

For example, albeit a bad one, but it is basic, if you borrow $100 dollars from a loanshark, he does not accept payment in the form of credit. He wants cash to cancel the debt.

The use of credit is merely a means of deferring payment, which is eventually made with cash or a check that is converted to cash based upon the cash available in the account. Again, cash is the common denominator. See a pattern here?

You can however pay one credit with another credit, but the original debt is not truly paid off, it is merely transferred to another lender who will eventually want his money.

Example: charge $10 dollars to Lowes. They send a bill, you pay with Visa from bank A. The Lowes credit is then transferred to Visa A, who pays Lowes the $10 in cash. Visa A sends you a bill for $10, you pay it with Visa B. This could go on forever, which it does. The bottom line, you still owe the $10 dollars to somebody until you decide to send a check (a form of cash) to settle the debt. You have simply deferred the payments while at the same time are paying interest, so the banks are making money on you. Essentially, you original $10 is now going to cost you more to pay off with cash.

If more people including yourself understood the basics of how credit perpetuates the increased debt this country accrues, we would not be in this tough financial time.
Whose Money

United States

#43 Sep 16, 2008
Jon C states that is "our money" that the bankers have lost. Unless you are heavily invested in the market, the average American will not lose out. Most average Americans don't have the money to invest in the market because they have to pay their bills. The only ones who stand to lose are the rich but who cares, and the average American who has invested in the market to make a quick easy buck without having to work for it. Again Oh well. Try working for what you deserve.
John C

AOL

#44 Sep 16, 2008
Goldbug wrote:
<quoted text>
Gold is money, paper is a promise.
Let me ask you a question - would you rather have an ounce of gold in your hands today or $782.10 current spot price for gold in cash?
How about an ounce of gold in your hand in a years time or that same $782 same time next year cash in hand?
If you chose the gold, you're agreeing with me that the VALUE of gold doesn't change but the amount of fiat dollars to purchase it does.
If you'd rather have the cash in hand next year, I wonder what you could buy with $782 then? That could be 3 supermarket trolleys of groceries by then.
Gold is not "money". Gold is a commodity that has value that increases during inflation, as does many other commodities like diamonds, jewelry, works of art, etc.

It's true that gold is a more convenient commodity for hedging agains inflation.

Today an ounce of gold has the exact same value as today's spot price of gold. And currency is more convenient to use in the super-market.

If we head into inflation, the price of gold will increase

If we go into depression (more likely) the price of gold will decrease.

You will still always have to convert gold to currency in the gold market (not a bank) to buy something.
John C

AOL

#45 Sep 16, 2008
From Unreal:

" I wish I could live in his fantasy world where everything is paid by credit."
<< You are living in that world, and it has been that way since the first bank was established."

" payment has to be made with cash"

<<All "cash" is mere "paper", backed by the government's promise to tax sufficiently to pay back the "credit" it has advanced to the economy. Unfortunately people do not understand that simple fact, and they vote for politicians who promise not to tax them to pay back the credit. It would be something like your father advising you not to pay back your credit card debt.>>

"You can however pay one credit with another credit, but the original debt is not truly paid off, it is merely transferred to another lender who will eventually want his money.

Example: charge $10 dollars to Lowes. They send a bill, you pay with Visa from bank A. The Lowes credit is then transferred to Visa A, who pays Lowes the $10 in cash. Visa A sends you a bill for $10, you pay it with Visa B. This could go on forever, which it does. The bottom line, you still owe the $10 dollars to somebody until you decide to send a check (a form of cash) to settle the debt. You have simply deferred the payments while at the same time are paying interest, so the banks are making money on you. Essentially, you original $10 is now going to cost you more to pay off with cash."

<<You are describing the kind of shenanigans that occurs throughout the entire finincial system - deferring payments and obscuring financial liabilities, and asset values.>>

"If more people including yourself understood the basics of how credit perpetuates the increased debt this country accrues, we would not be in this tough financial time."

<<The national debt is the direct result of the Americain people not wanting to pay the taxes for the expenditures they authorized through the crooked representatives they voted for.>>
Globalist

Yonkers, NY

#47 Sep 16, 2008
Prabhulal wrote:
They should had learn a long time ago about these problems. I am sorry for the people who lost their jobs. It is going to be a long time before they find new ones.
Yeah cos they all went out to India and Pakistan right Prabby?
Atlanta

London, UK

#49 Mar 26, 2014
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Since: Nov 12

Iligan City, Philippines

#51 May 7, 2014
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