"Wall Street readied for a potential Lehman Brothers Holdings Inc. bankruptcy after Barclays PLC said it pulled out of talks to buy the firm and the government indicated it wouldn't provide funds to prevent a collapse.
"Banks and brokers today held a session for netting derivatives transactions with Lehman, or canceling trades that offset each other, in case the New York-based firm files for bankruptcy before midnight New York time," writers Bloomberg.
Bank Of America has pulled out of negotiations to buy Lehman as well.
While I am not one of the known economist posters here, I do know one thing, this may well be the nail in the coffin for our economy.
Even Greenspan today noted that our economy is in ruins, and "my friends" we are at this point because of the GOP and their economic policies. Remember, this is our economy on Bush's tax cuts, this is our economy on the Bush and GOP lack of regulation for financial institutions, this is what happens when the GOP runs the economy.
McCain's tax cuts, as have been posted here over and over, will go disproportionately to the folks at the top, the rest of us will get little if no relief. Further, McCain is seeking to impose a tax on employer provided health care, yet more burden for those of us in the middle, easily costing us thousands more a year.
The government can't bail out Lehman, they can't bail out any other institutions, and Washington Mutual is also on the verge of collapse.
Our story, yes "story" to the nation must be a narrative that Americans can follow, and one that they know is true. There is no doubt that our nation is in economic meltdown, and the story is that Obama can be trusted to do what needs to be done so that the middle class of our nation won't completely go under.
I fear for our economy right now, for our nation. This is a turning point, and without doubt we cannot afford to allow those who have taken us to this point another four years to completely ruin us.
Reported by SanJoseLady Diary of Daily Kos.
