Whats happening to the market ?

[Sameer Jamal]

In the Morning I was reading in news paper that Satyam is about to fire its 4500 employees and then was shocked to hear that Lehman Brothers files for bankruptcy after that somebody forwarded me this link.

Forget about 2012 start thinking how to survive in the current financial year.
[ September 14, 2008: Message edited by: Sameer Jamal ]

[Vikas Kapoor]

Isn't it only 400?

[Arjun Shastry]

Thats a part of game-Globalization.
Lot of foreign direct investment was made in last 4/5 years mainly into services sector,infrastructure etc.As as result jobs were abundant and prices of all items started soaring.Food,restaurants,real estate,transportation etc.Now investers are not seeing much future and inflation already hit high and output is not proportional to investment,lay offs is the answer.
We are seeing how low cost airlines are doing due to heavy rise in ATF.

[tapeshwar sharma]

Another one :
Merillynch being bought over by Bank Of America

[Henry Wong]

And of course, AIG is not very far behind them.

As for why, all three of these companies are holding billions in debt due to the mortgage crises.

Henry

[marc weber]

Greed kills.

[Peter Rooke]

A recession - part of the cycle. Only problem is that with collateralized debt obligations and the like - nobody is really sure of the risk that they took on.

[tapeshwar sharma]

Is this worse than the 2001 dotcom bubble burst ?
I think at that time only the IT sector was affected.
IT is actually a dependent industry, so others were relatively less bothered...this time the very base is shaken.

[prabhu kandanur]

and what will happen to people who bought real estate (apartments/flats) - how do they repay their loans

[Ulf Dittmer]

and what will happen to people who bought real estate (apartments/flats) - how do they repay their loans

Assuming they didn't buy it as an investment -in which case they're out of luck-, they can continue to live in it and pay it off. For them, nothing changes for the time being. The nominal resell value may have fallen, but that shouldn't matter to them.

[Mike Simmons]

Unless they need to move - then they have a problem.

[Nila dhan]

AIG to follow Lehman?

[Akhilesh Trivedi]

Originally posted by Nila dhan:
AIG to follow Lehman?

Thats what are the indications.
[ September 16, 2008: Message edited by: Akhilesh Trivedi ]

[Pradeep bhatt]

Who will follow AIG?

[Pradeep bhatt]

More bad news
http://economictimes.indiatimes.com/News_by_Industry/IT_cos_ask_agencies_to_stop_hiring/articleshow/3493815.cms

[Arvind Mahendra]

Britney Spears announced she will be releasing a new album new album

[Sri Anand]

People have spent so much money last 4 years

Gold from $400 to $1000
Oil from $77 to $145
Real estate up by atleast 400%

They dont have anything left to spend for next 4 years, Economist have been designing bull shit like futures Commodities,re-re-repackaged loans, and not realizing, long term impact on the economy,Govt have no control saying free markets( but now they are buying stakes in company as they are failing).And people have becoms so ambitious that they think anything is possible they want to turn rich over night and they are ready to buy anything from any one.

[Henry Wong]

Originally posted by Prad Dip:
Who will follow AIG?

I speculate that Wamu is probably next... apparantly, they have a lot of subprime debt on their books.

Henry

[Sri Anand]

AIG saved for now, So only big players are going to help from governament and whose failure will have worst effect on economy.

[Frank Silbermann]

Originally posted by Arjun Shastry:
Thats a part of game-Globalization.
Lot of foreign direct investment was made in last 4/5 years mainly into services sector,infrastructure etc.As as result jobs were abundant and prices of all items started soaring.Food,restaurants,real estate,transportation etc.Now investers are not seeing much future and inflation already hit high and output is not proportional to investment,lay offs is the answer.
We are seeing how low cost airlines are doing due to heavy rise in ATF.

That's the problem right there. Foreign countries sold products to America, getting lots of dollars. Then they tried to invest those dollars instead of using those dollars to buy American products in return. If people are not buying American products, what can those investments possibly earn?

[Frank Silbermann]

Originally posted by Raghunandan Mamidala:
AIG saved for now, So only big players are going to help from governament and whose failure will have worst effect on economy.

AIG is an insurance company that got swindled. The investment banks who sold the bad loans were the swindlers. Though people have an obligation not to be stupid, I have to believe that the people who take advantage of others' stupidity are the more deserving of punishment.

[Frank Silbermann]

Originally posted by prashant bhardwaj:
Is this worse than the 2001 dotcom bubble burst ?
I think at that time only the IT sector was affected.
IT is actually a dependent industry, so others were relatively less bothered...this time the very base is shaken.

So far the 2001 dotcom bubble burst (and outsourcing craze) was worse -- mainly in the sense that, being in IT, my own personal job prospects were more negatively affected back then than they have been so far in this crisis.

[Arvind Mahendra]

Originally posted by marc weber:
Greed kills.

They are very much alive and kicking in my country.

[Sri Anand]

What kind of punishments do you these think smart financial people deserve who sucessfully fooled others how are they punished ?

[Arvind Mahendra]

Originally posted by Raghunandan Mamidala:
What kind of punishments do you these think smart financial people deserve who sucessfully fooled others how are they punished ?

White collar crimes very rarely have punishments commensurate with the crime meted out when often times their trespasses have graver impact on the lives of common people. Probably why the h1b bodyshops get away with such exploitation, and quasi fraud? on a daily basis. I don;t think anyone is going to jail for this much less find himself testifying in a witness box. This will attract more govt. regulation for the time being though which the next president can then repeal and start the whole cycle of screwing the avg person over all over again.

[Frank Silbermann]

Originally posted by Arvind Birla:

White collar crimes very rarely have punishments commensurate with the crime meted out when often times their trespasses have graver impact on the lives of common people. Probably why the h1b bodyshops get away with such exploitation, and quasi fraud? on a daily basis. I don;t think anyone is going to jail for this much less find himself testifying in a witness box. This will attract more govt. regulation for the time being though which the next president can then repeal and start the whole cycle of screwing the avg person over all over again.

Unfortunately, calculating each person's share of the guilt is too difficult; the best we can hope is that an example is made of a few of the most blatant offenders (as was done with Kenneth Lay of Enron), and that a great many people who knew what was going on and hoped to profit by it lose lots of money.

White-collar criminals have it safer than street robbers because you can't shoot them if you don't know they're stealing, and if you did know they were stealing it would be easy enough to protect yourself without shooting them.

[Maneesh Godbole]

Forget about crime, criminals and morality.
If you got money, now is the time to buy.
Just look at all those houses for sale because of foreclosures!
Going dirt cheap!

[Ulf Dittmer]

If you got money, now is the time to buy.

Of course, the market may not have bottomed out yet, in which case people who buy now may regret it later.

[Maneesh Godbole]

Originally posted by Ulf Dittmer:

Of course, the market may not have bottomed out yet, in which case people who buy now may regret it later.

In this world nothing can be said to be certain, except death and taxes!

[Sri Anand]

Its very uncertain to say market will not go up again from here.