WALL STREET CRISIS
Obama: 'I Fault The [McCain/Bush] Economic Philosophy'... McCain: "Fundamentals Of Our Economy Are Strong"... Bush: We "Can Deal With These Adjustments"...World Stocks, Wall Street Sink On Lehman Bankruptcy News, Merrill Sale... Biden: "McCain Stands With George Bush Firmly In The Corner Of The Wealthy And Well-Connected"... Secretary Paulson Deflects Blame: "I'm Playing The Hand That Was Dealt Me"... McCain Advisor Gramm Connected To Collapse
NEW YORK — In a stunning reshaping of America's financial landscape, two venerable Wall Street firms fell from the shock waves of a credit crisis that has plunged the financial system into turmoil, as stocks tumbled across the globe Monday.
Lehman Brothers, a 158-year-old investment bank choked by the credit crisis and falling real estate values, filed for Chapter 11 protection in the biggest bankruptcy filing ever and said it was trying to sell off key business units. Bank of America Corp. said it is snapping up Merrill Lynch & Co. Inc. in a $50 billion all-stock transaction.
Stock markets fell and Treasury bond prices soared, though investors had a measured response to some of the biggest economic news in modern U.S. history. The Dow Jones industrial average fell 250 points _ a number that has become almost commonplace over the past year amid the ongoing troubles in the financial sector _ possibly because investors were relieved by the Merrill Lynch takoever. Bond prices soared as investors sought the safety of government debt.
The developments took place as U.S. voters, who rank the economy as their top concern, prepare to elect a new president in seven weeks. Presidential candidates John McCain, a Republican, and Democrat Barack Obama, immediately called for stricter financial regulation.
Obama called the news "the most serious financial crisis since the Great Depression" of the 1930s.
President George W. Bush meanwhile signaled that the government would not continue to bail out Wall Street, saying only that "we are working to reduce disruptions and minimize the impact of these financial market developments on the broader economy."
Lehman Brothers, a 158-year-old investment bank choked by the credit crisis and falling real estate values, filed for Chapter 11 protection in the biggest bankruptcy filing ever and said it was trying to sell off key business units. Bank of America Corp. said it is snapping up Merrill Lynch & Co. Inc. in a $50 billion all-stock transaction.
Stock markets fell and Treasury bond prices soared, though investors had a measured response to some of the biggest economic news in modern U.S. history. The Dow Jones industrial average fell 250 points _ a number that has become almost commonplace over the past year amid the ongoing troubles in the financial sector _ possibly because investors were relieved by the Merrill Lynch takoever. Bond prices soared as investors sought the safety of government debt.
The developments took place as U.S. voters, who rank the economy as their top concern, prepare to elect a new president in seven weeks. Presidential candidates John McCain, a Republican, and Democrat Barack Obama, immediately called for stricter financial regulation.
Obama called the news "the most serious financial crisis since the Great Depression" of the 1930s.
President George W. Bush meanwhile signaled that the government would not continue to bail out Wall Street, saying only that "we are working to reduce disruptions and minimize the impact of these financial market developments on the broader economy."
Greenspan: This Is The Worst Economy I've Ever Seen
McCain wants Greenspan dead or alive
posted by Kangaroo Brisbane Australia at 3:02 PM
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