Horrible News: Lehman Brothers Bankrupt and Merrill Lynch bought by BAC

[Lemur]

Getting into my core accounting studies and paying attention the news has taught me that regulation is a good thing.

Why do you hate freedom?

[Ice]

Why do you hate freedom?

Actually, Lemur, I love freedom. Regulation in the financial sector insures freedom loving people have a fair chance and play by the rules. God I sound like such a democrat.

[CountArach]

Actually, Lemur, I love freedom. Regulation in the financial sector insures freedom loving people have a fair chance and play by the rules. God I sound like such a democrat.

*Cackles maniacally*

[FactionHeir]

My economic study times have been a long while ago now, but I've been wondering, why should the average Joe out there care if an investment bank goes bust or not. Don't they just make rich people richer and give a way for a select few people to make money quickly? Outside of that, how do they impact on the average Joe out there anyway, who doesn't invest in stocks, fonds and bonds?

[CountArach]

My economic study times have been a long while ago now, but I've been wondering, why should the average Joe out there care if an investment bank goes bust or not. Don't they just make rich people richer and give a way for a select few people to make money quickly? Outside of that, how do they impact on the average Joe out there anyway, who doesn't invest in stocks, fonds and bonds?

I don't know about America, but down here most of the retirement funds that people get are put into investment funds that invest in all of the above things - hence a huge drop like this that is likely to cause a great deal of problems for retirement plans. I know that last quarter almost all of the retirement funds in Australia lost money and I expect that this quarter will be much the same.

Plus it can cause job losses.

[SwordsMaster]

Ah, the downside of capitalism. I have no compassion for them. Indiscriminate gambling at every level of management and cutthroat internal politics are recipe for this kind of thing. It's about time Wall Street went down the tubes. They're still paying for the excess days of the 80s. I say the more the merrier.

[FactionHeir]

So basically the investors are playing with people's retirements and themselves getting paid 6 digit bonusses in addition to their salary. Those bonusses could go into the retirement funds to alleviate the problem.

[KukriKhan]

I don't know about America, but down here most of the retirement funds that people get are put into investment funds that invest in all of the above things - hence a huge drop like this that is likely to cause a great deal of problems for retirement plans. I know that last quarter almost all of the retirement funds in Australia lost money and I expect that this quarter will be much the same.

Plus it can cause job losses.

Much the same here (re: the effect of all this on "average Joe") Since the demise of the fixed-benefit retirement plans of pre 1980's, most pension plans ride the market, looking for the best return on investment - and they are major players. CalPERS (Calif state employees pension) and TSP (federal & military retirement plan) are huge. The end result is that "average Joe" who'd hoped to retire at 55, 56, 57 years old, will now have to work into his 60's, and maybe even have to rely (gasp!) on that old beast, Social Security to sustain himself.

[Rhyfelwyr]

Why do you hate freedom?

I was about to make exactly the same post before I scrolled down.

The disease is spreading...

Actually, Lemur, I love freedom. Regulation in the financial sector insures freedom loving people have a fair chance and play by the rules. God I sound like such a democrat.

Yep you just crossed the line into the European zone of 'freedom from', you Communist!