http://online.wsj.com/article/SB120571021671940207.html?mod=special_coverage

Dear Mr. Cayne,

don't worry, if it's worth any lawyer's time, the suit will come forth, especially since BSC has big investors like joe lewis and morgan stanley.

i seriously doubt lawyers will be able to do anything in this case though.

i guess it is pretty epic...

but when things like this hits close to home it no longer seems funny.

U.S. stock futures fell in Asian trade, pointing to a sharply lower Wall Street open later in the day, as global investors wonder if other financial institutions might need rescuing. S&P 500 futures fell 30 points, while Dow Jones industrial average futures dropped more than 200 points.

http://news.yahoo.com/s/nm/20080317/bs_nm/markets_global_dc;_ylt=AspeyDAAO0lKR6pzdmQZY62yBhIF

Tomorrow should be interesting.

Edit: wait make that today

You guys do not find this to be very bad??? They had to bail out one of the largest banks in America!?!?! This is a sign of things to come America is really heading down hill and i don't think our country realizes how hard the road ahead is going to be.

It is true that this is very bad.  However I really don't think that it's more than a blip on the overall radar.  Despite what everyone says the US is still not in a recession.  Last quarter we had .1 economic growth or so and this quarter looks to be the same.  A recession by definition is 2 quarters of negative growth.  Since we haven't had 1 yet even we can't really be in a recession.

If anything this will reduce the stupid level of debt that US citizens incur.  If that means the growth of the economy stays stable instead of growing for a few years it will send a few investors off the deep end, but overall the US economy will still be fine.  I personally believe many stocks have become overvalued (cough google) and this will balance them out before they grow again.  If anything I think the amount of rate cuts that have occured most threaten to devalue US currency.

 Sorry went a bit long there.

"However I really don't think that it's more than a blip on the overall radar"

that is taking a really, really removed stance. i sure hope you're right, but i'm not so optimistic. let's count the blowups in the last 6 months or so. subprime. SIVs. monolines. now, bear stearns. if the "overall radar" is "major credit crunch", then yeah, BSC going belly up is just a blip. but if the "overall radar" is "economy is fundamentally strong", well, i would have to disagree. BSC is about as strong an indicator as you can find anywhere.

recession-wise, most economists would actually consider the US is currently in a recession--we'll need to wait till data another month or two away to know if growth is already negative this quarter. sticking to the "2Q negative" definition is at best academic, at worst denying the real situation. some economists think we'll be in a long, sustained recession, in the sense of essentially zero growth, but for perhaps 2 years.

i agree that debt level in the US needs to come down. this subprime thing should be a lesson. the massive derivative products issued by banks needs to be better controlled. bear stearns going under is a sign that i-banks do a horrible job at risk management, and it is an aspect that needs to be completely re-evaluated.

on tuesday, the fed meets. not sure if the rate cut is coming that day or wednesday. i think the markets already are pricing a 75bp cut, with many believing a full 100bp cut. perhaps even more.

i'm hoping for the best. which would be--drag it out. the more time the Fed can buy for the markets, the better off we'd all be.