Lehman Bros and hockey
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09-16-2008, 02:38 PM
Join Date: Mar 2004
Originally Posted by
You know, my post secondary education was in business...Accounting and I took a few economic courses of course but I really have absolutely no clue what is going on and how serious this is with the Lehman brothers?
Without going into partisan politics, how bad is it and could all of this turmoil have a dasterdly effect on the economies of the world?
Could we really see another depression perhaps?
I figured some of you New Yorker's might know more what is going on versus this Albertan way out in Western Canada.
The potential in lost jobs between Merril Lynch being bought and Lehman going bust is between 40,000 and 50,000, and I believe those numbers include their worldwide staff. So, from that standpoint, there are lot more people out of work now than there were on Friday. From a macro economic view (and I'm no economist) I think the long-term effect will be tighter regulation on all forms of banking on a global scale. We'll see a lot of small, narrowly focused investment firms pop up, and those might actually help move the markets up radpidly as institutional investors look to recoup their losses using what should be more nimble firms. My guess, in a year this will all be a distant, bitter memory for most of the world.
Short term? Tax roles in NY, Toronto, London and other financial centers will be a lot lower, and that has to have an impact on the quality of life in those cities and states. New York State's economic crises and bduget short-falls just got a lot more acute. Christams is going to be a bit grim this year.
My Dad always said, when banks starting building temples to themselves (big, flashy buildings) it's never a good sign. I know that is simplistic, but certainly there has been a large amount of hubros shown by the major banks over the past year or so.
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