Strap on your seat belts it it is going to be a heck of a rough ride south of the border and the economic fall put is sure to spill over the border. After 158 years, one of America's largest investment banks is going down for the count. Lehman Brothers is filing for bankruptcy today!
Efforts over the weekend to find a solution to the company's woes proved fruitless as potential suitors pulled out of potential deals leaving many of Lehman Brothers creditors in crisis. The weight of the housing collapse continues to cripple the American economy.
The Federal Reserve announced a series of steps to support the financial markets. The Fed said it would expand its short-term lending to banks by starting to take all investment-grade debt as collateral - instead of just treasuries and other high-grade securities.
With no salvation for Lehman, the sell off to come when the bell rings this morning could be historic, even catastrophic. That said it is time to stop deferring the inevitable, get the hurt over and write down the bad loans so the recovery, such as it is, can begin.
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