Fasten your seat belts. It's possible that September 14 and 15, 2008 could be days of infamy to match October 24, 1929. [more]
Just today, Lehman Brothers is "hurtl[ing] toward liquidation after it failed to find a buyer," Merrill Lynch got swallowed up by Bank of America, A.I.G. is scrambling to avoid failure, and Nouriel Roubini expects a run on Morgan Stanley and other top brokerages. Things got so bad that CNBC (US) even pre-empted Deal or No Deal to cover the snowballing crisis. As of 11pmEDT, stock futures are down, gold and silver are up, and most of Wall Street is emptying the local CVS and Duane Reade pharmacies of analgesics and Pepto-Bismol.
Look for both of the presidential candidates to respond to the financial crisis early tomorrow. The Fed and BushCo, who previously socialized the risk without socializing the potential reward, appear to be saying no to bailing out Lehman. Add in the fundamental underlying cause – the deregulation of both the American securities market and mortgage industry – and you can count on both Obama and McCain to decry the culture of corruption and greed.
Stay tuned – Monday is going to be a white-knuckle day.