Comments on: Merrill, Lehman, Bank of America: Financial Chaos?

By: LuisMcduffie6

LuisMcduffie6 — Tue, 27 Oct 2009 11:11:23 +0000

Cant access my pc much here, at work right now will surely give a fair comment latter this evening.

Have a nice day
jenny yully
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watch scrubs | watch friends online | watch american dad

By: Karoli

Karoli — Wed, 17 Sep 2008 05:10:10 +0000

I agree. I'm not all that pleased about it either, and can't help wondering if there's a backstory that is yet to be told.

By: KyleSellers

KyleSellers — Wed, 17 Sep 2008 05:06:31 +0000

I have to say, I am upset by the Fed bailing out AIG. I disagree with it on principle.

Hopefully, as soon as things settle down funding will come along and someone will by the 80% stake back from the government… thus bringing it back into the free market before another Fannie Mae/Freddie Mac situation develops. As bad as the AIG situation is, allowing it to remain (even partially) in the governments hands would be disastrous.

By: Karoli

Karoli — Wed, 17 Sep 2008 04:53:52 +0000

I have no disagreement with you on the indictment of greed and hubris on Lehman's part. But when assessing damage (and in particular with respect to AIG), weight has to be given to the ripple effect across the economy of allowing failures.

This is why, after the depression, federally insured deposits came into being -- to make sure that the failure of an institution does not fan out so far as to undercut the economy and possibilities for growth further.

One thing that cannot be ignored: these companies have been given a ticket to a free ride for far too many years. It's time for them to be accountable and transparent.

By: KyleSellers

KyleSellers — Mon, 15 Sep 2008 20:33:51 +0000

I think the point to take away here is that Lehman, most significantly, is paying the price of poor greed-driven decision making. They were an early backer of sub-prime loans and for a few years were doing quite well with these loans, but it was short sighted.

In a free market, companies should be allowed to fail–and not be bailed out. These failures should be like a lighthouse on a rocky shore, warning other ships of the danger of risky decisions. It will also be a warning to investors, employees, etc. to better research the companies they invest in, work for, and do business with. I believe that the root of the problem was that many people got caught up in a bubble and their judgment was clouded by dollar signs.

Let failing companies fail, and struggling companies fight through the tough times without gov't assistance. Hopefully, present troubles result in future caution.