Episode-54- Hurricane Ike – Merrill Lynch – Lehman Brothers – Lessons Learned?

This was one of the most destructive “storm filled” weekends in history. First the true storm of a massive category two hurricane in the form of Ike, which has left Galveston Texas in ruins. The second storm has been largely over shadowed by Ike and it is the financial storm that say Bank of America swallow up Merrill Lynch and left Lehman Brothers in the darkness of bankruptcy.

Tune in today to hear…

  • Why I have little sympathy for those that ignored evacuation orders
  • More on the story of “The Grasshopper and the Ant” winter isn’t always a season
  • It is easy to be hard on those who were not ready, but, are you ready
  • Why announcements like Lehman Brothers and Merrill Lynch always come on a Sunday
  • The effect of Monday Amnesia by weeks end – “watch the shinny celebrities and just relax”
  • Why this isn’t the big one and more grief is yet to come
  • How American’s are paying attention only to the “temperature of their pools” and don’t see the underlying cancer that these new financial storms represent
  • Don’t be fooled, this has all happened before and unless we crack the whip it will all continue to happen again, and again, and again…..
  • First get mad, you can’t do anything unless you get mad first
  • Why these signs are screaming “prepare for disaster” at a deaf population
  • The cascading effect when big companies fail and consolidate on small and mid size businesses
  • Why the promise of a better 2009 is a lie and a big one at that
  • How the money for “bail outs” and “buy outs” is running out and what that means for you
  • A third institution that most likely won’t survive until mid October

Remember to comment, chime in and tell us your thoughts, this podcast is one man’s opinion, not a lecture or sermon. Also please enter our listener appreciation contest and help spread the word about our show.

11 Responses to Episode-54- Hurricane Ike – Merrill Lynch – Lehman Brothers – Lessons Learned?

  1. While we are looking at brilliant things consider this
    Al-Qaeda Targets Lethal Disease Research Facility on NY Island
    http://pajamasmedia.com/blog/al-qaeda-operative-targets-lethal-disease-research-island-in-connecticut/
    In 1954, the Department of Agriculture took over control of Plum Island, transforming the facility into “America’s first line of defense against foreign animal disease.” By 1999, outspoken scientists and government officials called for the facility to be closed down, saying the study of obscure zoonotic diseases did not warrant the $16.5 million that taxpayers were spending on it each year. Further, many felt the risks associated with a category-five hurricane hitting the laboratory outweighed the benefits of the research going on there. A hurricane in 1991 knocked power out on the island and threatened the release of deadly germs; there was another power outage in 2002. Along came the terrorist attacks of 9/11. Control ceded to the Department of Homeland Security and the government shifted its focus from closing the facility to expanding it

  2. Jack, glad to see you weathered the hurricane.
    I’ve not had a chance to listen to today’s episode; but I am looking forward to it in part for your thoughts on yesterday’s economic announcements (personally, I didn’t think Lehman’s would be able to restructure itself by today anyway).

    Keep up the great podcasts.

  3. I used to be a series 7 stockbroker (investment banker /registered represenative “what ever you want to call a legalised bookie” and what you are not seeing in the job stats is how many mortgage brokers, series 6 the insurance investment reps etc are losing jobs, let alone the well establsished hard working well paid stockbrokers and the number of college students that get stuck giving these types of jobs a try until finding soomething in thier major going into economic crisis or losing lifestyles themselves.Yes worry about the big picture of no money for those that lost it investing but hey it trickles down big time, my girlfreind is a nurse with qualms about having a AIG retirement plan,I lent a freind the fees to take his stockbrokering test against my better judgement and advice that he would be out of the biz in 4 weeks but let him have the dreams of bettering himself and he already had time spent and expense studying the drival and the dreams. The hardcore realitys of Joe the insurance salesman, Jane the up and comming wallstreet exec and the formaly Rich guy you could hit up for a micro loan when needed are not represented in the total inpact of a finacial Ike event that changes everyones world or personal realities daily. when times are good everyone has an extra buck to help a charity or a freind out and lord help the beggar or the (501c) licensed panhandler when times get rough, but through strategic planning and preparations , we might all “just” get by. How? with a bit of heartfelt consideration as as the old song goes “we get by with a little help from our freinds”. No man or woman is an island and SHARED INFORMATION AND SOLUTIONS freely given is the only thing that builds community response and self help.
    This blog and others provide the necessary INSIGHT by using what in America is called free speech,for or against but the true concept is the sharing of ideas,the pointing out of problems for consideration, possible solutions voiced without suppression or fear of consequence. Interact first right or wrong before we react is a thoughtful process we must pursue and take part in and I personally would like to see more conversation both pro and con with our host. List comments or have a seperate forum for what is on our minds but maybe off subject,perhaps this type of forum our host does not wish because it would take away from the message he presents for consideration in his dutiful and expansive attempt to bring a specific subject into focus but may I suggest we all do not relate to only one subject on a given day and that a seperate forum may take the pulse of what concernsthe dedicated ;listeners may have to expound upon or bring to the forefront as major shared concerns that the host may wish to adress by gleaning a shared sabre call.

  4. Starting look like a long line of dominoes, just waiting for the little push to start them all falling.

  5. I am glad that you are going to be doing a week long look into the economic tsunamis that are hitting us. I know some have voiced their dislike of such things in the podcast, but to me, they seem as vitally important as gardening, solar power, and which firearm is the best.

    I have been trying to get others around me to be more aware of what it going on economically. To be honest, I am preparing for a depression on the scale of what happened after WWI. I think that it is entirely possible that our nation will undergo that again.

    Keep up the podcasts, both political, economic, and survival. I think we are all going to need it soon.

  6. Hey good show today. Sound sounds much better. Look forward to more.

  7. Jack,

    Thanks again for another great show.

    I continue to appreciate the information you share with us. Like many other listeners we are watching the situation with growng apprehension.

    We just completed our debt snowball and paid off the last of the credit cards. Our only remainging debt is the mortgage. In our area, housing prices are depressed and the “value” of our home is diminishing. With the credit card debt eliminated, we are starting to pay additional principle each month.

    We have a small emergency fund in the bank and started putting a little cash away for a “rainy day”.

    Based on advice from one of your recent shows, initiated our $20.00 a month pre-1965 silver coin

    Which now brings me to the question of our 401K. Watching the financial events, turmoil and general unease of the market…we are concerned. As you aptly pointed out in today’s show, we are debating whether to pull out of our 401K or “ride it out”.

    Like many, we are concerned that a financial collapse of major proportions occurs and overnight our 401K evaporates. Would appreciate any advice you could impart to your listeners on this dilemna. Pros and cons of cashing out, long term impact, etc…

    Many thanks for sharing your wisdom, opinions and yourself.

    Daniel

  8. If this isn’t a final wakeup call for the sheeple masses, then there is little hope to get them up and making preparations for hard times ahead.

  9. Modern Survival

    @DLB,

    First and foremost understand I am not a financial adviser and simply to avoid lawsuits I must say please check with a qualified adviser before making any decision about investing.

    Now that said I do not advocate “pulling out” any money in a 401K. You may want to seriously consider some safer funds in it (bonds perhaps even cash) for the coming storm. I don’t personally see the total collapse many expect, I prepare for it but I expect yet another recession. So I will take somewhat more risk in a 401, SEP, IRA, etc because they are long term.

    Now there are two other ways I could read “pull out”

    1. Stop contributions for the near term and start saving outside the plan or cutting contributions to do the same.

    2. In a pinch pay the penalty and taxes and withdraw the money.

    Well in the show I meant option two and BUT I was not advocating it, only stating that if a person was in deep crap and broke they would choose to do it.

    As for option one, I can only say what I personally do. We try to save at least the customary 10%, I am still putting 5% in my 401K. In my 401 I have some in cash, some in fixed income bonds and the stock stuff is about 10% splits into all the funds for contributions (new buys). The money that is accumulated is mostly in cash.

    You have to make your own choices of course but for right now mine is not putting all my money into tax deferred status. Indeed that is always my choice some day soon I will do a show on why, I will probably at least mention it today.

  10. I liked this show a lot, you’ve really been putting out some great content.

    Anyways random comment, the movie Network isn’t all that great. The only good parts are “Howard beales” speeches. I’d say rent it and save some money for food storage 😉

  11. The Bank of America is trying to get their ducks in a row to be so big the feds can’t let them go under. That’s why they are buying sinking ships.