Wow, nice crash!

[280plus]

The Dow finishes over 500 points down.  All you can do is laugh, or jump out a window.

[Manedwolf]

Or just go "eh" if you got the hell out of financials a long time ago, figuring this was coming.

I'm surprised they didn't bail Lehman, though. It hit the ground and exploded. People are literally cleaning out their desks today. They interviewed an equities salesman who had been there 23 years and has no other skills.

I have mostly some agile mutual funds (like CGM) along with some medical and entertainment. I figured the financials sector was going to be an "Oh, the humanity!" moment eventually.

Who would have thought giving loans to people with no job and no assets, then trading those toxic loans like a game of hot potato with a lit stick of dynamite was a bad idea? Whoever was left holding the dynamite when it went off got splattered. Such as Lehman, here. 

I am just REALLY hoping Bernake doesn't do a rate cut tomorrow. Hyperinflation sounds like something not so fun.

[Headless Thompson Gunner]

Yeah, I was kinda surprised the Fed let Lehmans kaboom.  Not what I expected.  It makes some sense, though, now that I think about it. 

People have known Lehman was going down for months now, so it wasn't a shock.  The market is more ready and accepting of this sort of thing now, too, I think. 

Bear Stern's collapse came out of nowhere, and at a time when the market was completely freaked out.  Back then, everyone knew there were major problems, but nobody knew what they were, where they were, and who was at risk.  Everyone thought he was going to get eaten by this bug scary unknown monster.  Now people have a good feeling for where the problems are and what the risks are.  Investors are much more ready to see a big brokerage collapse.  No panic this time.

[Brad Johnson]

It'll be shaky for a day or two, then everyone will calm down and things will get back to semi-normal.  Happens.

Brad

[Manedwolf]

I don't know. Hundreds of billions were lost today, and brokers will be delivering margin calls to lots of amateur investors. They don't have more cash to put in, so...

Yeah. That.

[Perd Hapley]

I get all my news from the radio, so...

One news-reader said, "we can't say this is the worst we've ever seen, because we've never seen anything like this."   

Another one said, it was the worst day since 9-11. 

[Werewolf]

AIG - largest insurer in the USA if not the world - is teetering on the brink. If it collapses the fallout could really be nasty - more so even than that of Lehmans and Merril Lynch. Insurance companies pump lots of money into the economy, stock funds and bond funds. If they go under what happens to those funds when those assets are sold off by the trustees responsible for paying off AIG's debts? A lot of those funds may not be able to convert AIG's holdings to cash without destroying the funds.

CAN ANYONE SAY - RIPPLE EFFECT?

[Headless Thompson Gunner]

AIG is probably dead.  I think they're looking to borrow $40B.  Given that their entire worth is only $12B, that's a major problem.  Their stock price is down under $5 a share, so there's no money to for them to grab there.

Bear Sterns, Lehman, and Merril are all done.  Add AIG and maybe WaMu in the near future.  Suddenly we'll find that we've worked our way through most of the list of likely-to-die financial companies out there.  It sucks while it's happening, but it's good to get it done and over with. 

[Perd Hapley]

So, my cars are insured through AIG.  Should I expect some big corp to buy my policy, or do I need to start shopping IMMEDIATELY?

[doczinn]

I've always wondered what happens if the company that owns your mortgage goes under. Do you suddenly own the house free and clear?

[The Annoyed Man]

The Dow finishes over 500 points down.  All you can do is laugh, or jump out a window.

Or vote for someone besides a Democrat or Republican?

Or just ignore the problem?

Or turn on the T.V. to some distraction?

[Headless Thompson Gunner]

I've always wondered what happens if the company that owns your mortgage goes under. Do you suddenly own the house free and clear?

Mortgages are essentially bonds, and they can be bought and sold. 

If your mortgage lender goes under, your mortgage will be sold to another bank or investor.  You'll get a letter in the mail telling you that the mortgage has been sold, along with new instructions on where to send your payments.  The terms of the mortgage won't change. 

[Gewehr98]

Fistful, see the other thread (Lehman, etc.) regarding my same question.

As an AIG policy holder, I've already started shopping, and talked to USAA just today.

I would *assume* that the current insurance policies would be sold to the buyer as part of the parceling-out of AIG.

Who wants to buy an insurance company with no policy holders or potential revenue?

But, then again, weirder things have happened...

Can you imagine what would transpire were all those bank-owned vehicles to suddenly go uninsured, and the lienholders got word of it?

[Jamisjockey]

Hey, look! Something shiny!

 

[agricola]

For anyone who expected this to be about crashing, and was disappointed: http://www.youtube.com/watch?v=-hgG-yeCdsg

[Leatherneck]

Who would have thought giving loans to people with no job and no assets, then trading those toxic loans like a game of hot potato with a lit stick of dynamite was a bad idea?

Quoted for excellence. Manedwolf gets the analytical analogy award!

TC

[41magsnub]

On another note my ROTH IRAs are with Merrill Lynch which is being taken over by of all god damned things BOA.  Guess I'll be moving those, I have no interest in doing any sort of business with that company.

[K Frame]

"All you can do is laugh, or jump out a window."


Actually, I prefer a third course, which I started exercising at the end of the day...

Instead of standing around pissing my pants, crying, and sucking my thumb that my accounts lost in excess of five figures today, I dumped about $3,500 INTO the markets, into stocks which got caught up in the monkey panic, and which are otherwise fine, solid companies with a long track record of performance. If I had any more right now, I'd be putting more in the markets.

I made a lot of money after the last market crash, I figure I'll make a lot this time, too. I just have to wait until everyone stops pissing their pants, sucking their thumbs, and gets their heads out of their asses.

[Headless Thompson Gunner]

My personal investment account is with Merrill.  I'm rather fond of my adviser, she's been remarkably good with my money and with my mother's money for many years back.  If she sticks with the new BoA company, then I'll stick.  If she goes to another brokerage, then I'll go there.  

Here's to hoping she doesn't just decide to retire.

[Jamisjockey]

I just have to wait until everyone stops pissing their pants, sucking their thumbs, and gets their heads out of their asses.

Are you talking about the Stock market, the .gov, or this board?
 

[280plus]

I just have to wait until everyone stops pissing their pants, sucking their thumbs, and gets their heads out of their asses.

Are you talking about the Stock market, the .gov, or this board?
 

[280plus]

For anyone who expected this to be about crashing, and was disappointed: http://www.youtube.com/watch?v=-hgG-yeCdsg

Another nice crash! 

[Perd Hapley]

Fistful, see the other thread (Lehman, etc.) regarding my same question.

As an AIG policy holder, I've already started shopping, and talked to USAA just today. 

I've found a better solution.  I'm buying lots of gold, and voting for Bob Barr. 

[Headless Thompson Gunner]

Fistful, see the other thread (Lehman, etc.) regarding my same question.

As an AIG policy holder, I've already started shopping, and talked to USAA just today. 

I've found a better solution.  I'm buying lots of gold, and voting for Bob Barr. 

Brilliant!

[French G.]

made a lot of money after the last market crash, I figure I'll make a lot this time, too. I just have to wait until everyone stops pissing their pants, sucking their thumbs, and gets their heads out of their asses.

That's right. I have no cash but I still bought a few more shares of a company I already own and expect to see brighter days for. My big move is still waiting in my retirement fund, I have made money with it every quarter this year and last. Since I get to choose where it is invested to a point none of it is in stock funds. I stand to make a killing when I decide to move it back to stocks. Not yet...