Banking is bound to get a lot of the limelight in the next couple of days following the announcement of Lehman Brothers and Merril Lynch Co, two well-known names. Lehman has reportedly filed for bankruptcy which erased about $700 billion in shareholder wealth.
This shakeup is bound to continue and for investors, no one is safe at the moment. A lot of businesses are bound to suffer and this is not only isolated in the United States. It is bound to affect the whole world as market continue to tumble and debt sorely increasing as the months pass.
A stunning makeover of the Wall Street landscape sent stocks falling precipitously Monday, with the Dow Jones industrials losing 500 points in their worst slide since the September 2001 terrorist attacks. Investors recoiled after a shakeup of the financial industry that took out two storied names: Lehman Brothers Holdings Inc. and Merrill Lynch & Co.
Businesses are sure to be on thin ice as they are closely monitoring development in the stock market. Efforts were made to help stave off these impending problems but apparently many of these efforts have come up short and failed. If this trend continues, expect a lot of other businesses drowning in debt to close shop. Only God knows what is going to happen next as the business sector is sitting on pins and needles to date.
Originally posted on September 16, 2008 @ 6:36 am