World economy talk

[uls]

the weekend talks failed.

Bank of America and Barclays pulled out.

No buyers for Lehman.

wala na... the end na for Lehman Brothers.

Lehman Said to Prepare Bankruptcy Filing After Buyers Withdraw
http://www.bloomberg.com/apps/news?p...0pHVE&refer=us

Sept. 14 (Bloomberg) -- Lehman Brothers Holdings Inc. prepared to file for bankruptcy after Barclays Plc and Bank of America Corp. abandoned talks to buy the U.S. securities firm and Wall Street prepared for its possible liquidation.

Washington Mutual... you're next.

And also, i'm adding AIG and Merrill Lynch to my watchlist.

[uls]

Bank of America to buy Merrill Lynch instead.

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biggest life insurance company in the world - AIG - is in deep sh*t...

badly needs money...

asking Fed for help.

How pathetic.

[creepy]

I think AIG should just sell out to the Russians. Para maging...

"American Insurance Group, a subsidiary of Gazprom"

[tidus1203]

Good for Merrill at least may bumili at a nice premium price. Pero Lehman its going in the way of Bear Stearns.

The Fed is pathetic. Now they accept equity as collateral of loans. What the hell is that? EQUITY AS COLLATERAL. Now the Fed's balance sheet is not only full of junk mortage back securities, now even stocks of banks can be used as collateral. The US taxpayer is in deep $***! GET OUT OF THE US DOLLAR NOW!!!!

[uls]

baka later on the Fed will be accepting paintings and jewelry as collateral hehe

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BTW, we have a local version of Fannie Mae/Freddie Mac...

it's called the National Home Mortgage Finance Corp. (NHMFC)

[Monseratto]

Lehman Files for Chapter 11

http://news.bbc.co.uk/2/hi/business/7615931.stm

The fourth-largest investment bank in the US, Lehman Brothers, has said it will file for bankruptcy protection, amid a growing global financial crisis.

With practically nothing to show but toilet paper, more banks will soon join Bear Stearns into oblivion...

Three of the top five US investment banks have now fallen victim to the credit crunch. Lehman and Merrill join Bear Stearns, which was sold to JP Morgan for a knockdown price in March.

Greg Wood, the BBC's North America business correspondent, said that police had cordoned off the bank's headquarters in New York and staff were leaving with cardboard boxes as onlookers gathered to watch the bank's demise.

Fed's are really pushing it...

In a bid to prevent further turmoil, the U.S. Federal Reserve Sunday announced a series of steps to support the financial markets. The Fed said it would expand its short-term lending to banks by starting to take all investment-grade debt as collateral.

"The steps we are announcing today, along with significant commitments from the private sector, are intended to mitigate the potential risks and disruptions to markets," said Fed Chairman Ben Bernanke.

[empy]

the Fed is in the middle of a firestorm to be sure, but what exactly would you have them do? is there a better solution than trying to walk the line between keeping the capital markets solvent and pissing away the taxpayer's money? if so, let's hear it.

speaking of Lehman, i have a feeling that someone's going to pick them up...i'm getting in for a relatively low-risk, high-reward play

[tidus1203]

^^Rather high risk, low return play. Lehman is basically an empty bag with hundreds of billions of debt. Unless someone is willing to sell the whole of Lehman for the value of their HQ in New York

[uls]

Nice building Lehman has...

i like to own a building like that...

[tidus1203]

As I have anticipated my favorite currency the Japanese Yen is going up quite sharply. Who says you can't make money on a down market?

[empy]

^^Rather high risk, low return play. Lehman is basically an empty bag with hundreds of billions of debt. Unless someone is willing to sell the whole of Lehman for the value of their HQ in New York

not sure if a deal will actually get done, but all i need is for a serious rumor to get started

if nothing happens i don't lose much...the stock is going for 15 cents for God's sake. i've flipped this same trick over and over again with airline stocks (gotta love Delta!)

[tidus1203]

High rollers ka pala ha Ako I don't play with these obvious junk, I always prefer safer investments and trades thus my preference to the Japanese Yen and Japanese Government bonds (JGB).

[uls]

BDO and Sunlife has exposure to Lehman

Philippines' BDO sets $80 mln provision for Lehman exposure
http://www.reuters.com/article/rbssF...P4598420080916

MANILA, Sept 16 (Reuters) - Philippine banks have limited exposure to Lehman Brothers, the central bank governor said, but Banco de Oro Unibank (BDO.PS: Quote, Profile, Research, Stock Buzz), the country's second-biggest bank by assets, said on Tuesday it had set aside 3.8 billion pesos ($80.35 million) in provisions.

http://www.marketwatch.com/news/stor...B%7D&dist=hppr

TORONTO, Sept 15, 2008 /PRNewswire-FirstCall via COMTEX/ -- In response to today's announcement by Lehman Brothers Holdings Inc. ("Lehman") of its intent to file a Chapter 11 bankruptcy petition, Sun Life Financial Inc. (TSX/NYSE: SLF) today announced that it holds $334 million par value of Lehman bond securities and approximately $15 million net value of Lehman derivative instruments. Sun Life Financial holds collateral security under collateral security agreements for its net derivative exposure to Lehman.

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol SLF.

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The Lehman shock hasnt yet sunk in...

Thousands of companies around the world trade with Lehman.

Every Lehman trading partner now has to check their losses.

[tidus1203]

Sunlife is understandable, but I am surprised a local bank has exposure to Lehman Brothers? Nevertheless it looks small so no worries.

[empy]

High rollers ka pala ha Ako I don't play with these obvious junk, I always prefer safer investments and trades thus my preference to the Japanese Yen and Japanese Government bonds (JGB).

i try to roll the dice at least once a quarter...i have enough of the safe stuff

at this point i think you have to have a blend of safe investments for asset protection, and have some high-risk but diversified bets. i'm trying to get the hang of distressed investing but the small part of my portfolio i am putting in distressed industries is most likely going to financials and real estate

[mazdamazda]

If you must have some fiat currencies, IMO the best places to be is the Australian Dollar

Soooooooooooooo... if I listened to you back in Feb, I would have lost nearly 10% of my money's value in US dollar.

:hysterical:

[tidus1203]

Yep times have change, ganun kabilis , but back then it worked. Anyway I sold my Aussie at 0.9321. Now I am making my killing in the Japanese Yen

[boybi]

For an ordinary citizen like me, what happened to these US companies? Bakit sila nalugi? What will now happen to the USD?

Will the local partner of AIG (PhilAm Life) suffer the same fate?

[boybi]

For an ordinary citizen like me, what happened to these US companies? Bakit sila nalugi? What will now happen to the USD?

Will the local partner of AIG (PhilAm Life) suffer the same fate?

[tidus1203]

Basically nalugi sila because of the downturn of the US real estate market. But for different reasons. Lehman and Merrill owns those securities backed by those mortgages and AIG's case they insured those securities. During the bubble it was very profitable but after the bust it was disaster for them.

Its hard to say what will happen to Philam if their AIG goes belly up. Best to play it safe and move out you don't want to move out when other people are moving out unahan mo na sila before a potential run on the bank occurs.