September 15th
500 drop on DJA; Lehman Bros. has gone belly up. AIG, WAMU Morgan Stanley are not in good shape. AIG should be the next to go. I’ts a huge insurance company that has my mom retirement annuity—sigh, I don’t know what that means. I’m afraid to find out! Oh, yeah, Merrill Lynch has sold itself to Bank of America.
This was given big headlines around the world, but had developed over the weekend as talks were to save Lehman and so it’s really no surprise to those who have been watching this situation over the past several months.
Roubini thinks our 18 months recession will be over mid-2009. Meredith Whitney now thinks housing values will fall over 45% from 2005 to whenever it stops falling. She’s said 30 % before, I think.
Automatic Earth still says 60-80% and more on the 80% side these days.
I have paid absolutely No attention to the campaigns since I watched the conventions. I’m not sure why, the hurricanes and economic stuff is more fascinating I think. Also, a lot of the talk on the campaigns has been about Plain and her lipstick and whether or not Osama and McCain are insulting each other. Sheesh!
September 16-17
A lot of Sh*t seems to have hit the fan since this weekend; AIG almost was ready to bankrupt but the government has stepped in to stop it. This is GOOD for us—Mom and me—as she receives an annuity from them! If they’d gone bankrupt, we would have lost the money—so it has become VERY personal at this time. I rthought that was the way it would be but I wanted to ask him that and some other questions. DJA is way down, 10,700.
Talked to Richard, mom’s broker, he expects housing won’t recover for at least two years probably longer; the stockmarket will probably or could go down to about 9000, He is more sure that it will go down to that than not. He said we’re in for a rough ride and is confirming everything I expected. He moved a fund of my mom’s money into the money market, that means it’s in cash right now. He’s been a busy man the past couple of days! I’ll bet!
News from friends about others they know losing in this market:
--Linda’s music friends include a lot of real estate people on the east Coast, Northern Virginia and Fredericksburg, VA. One custom home builder has gone under in the past year, all their personal money was used to try to save it but they lost it all. I don’t know if that means they lost their own home or not.
--A respected yoga teacher of many years came to our studio to do a workshop this past weekend. I couldn’t go but my friend Barb said that she has lost a lot or weight and her beautiful head of hair is much thinner. Her husband and she have both been ill the past two years, they are not young, and lost their several investment properties they had near where they live in Sedona. I was very sad to hear about her and her husband. She’s travelling and teaching again because she needs the money. She’s a wonderful teacher and I hope to see her again.
--D. in Tennessee said her husband has lost his job and they don’t know if they’ll have to move again or not.
--I’m waiting to hear about the enrollment in our health plan in the next month or so. How much will it increase?? :/
-- And oil was at 92 dollars or something wacko like that with the situation in the Gulf. ??
shamba
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