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If someone doesn't step in...
when they start unwinding positions in a chapter 11 or in Lehmans case most likely it would be a chapter 7 bankruptcy ...
nearly 100 billion dollars of Toxic paper at Lehman alone is going to flood the markets.. and its going to cause other banks worldwide holding the same type of toxic paper start having to right down billions upon billions of dollars ... causing many to go insolvent.
Never mind all the credit default swaps that were written to hedge alot of the lehman debt...
On top of this now defaults in Prime mortgages are at a rise.. and alt a mortgages are reseting... with 6.1% unemployment rate and getting worse... I think over the next few years we'r going to be seeing the 10%+ interest rates of the late 80s... as inflation sky rockets!
The situation is so severe out there right now its compareable to the Great Depression...Remind you wallstreet is always predicting whats to go down in the economy 6 - 9 months ahead... and it hasn't even gotten that bad yet in the street...
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