http://www.ibdeditorials.com/IBDArticles.aspx?id=306370630265658
Wall Street: Old timers will recall F.I. DuPont or Goodbody & Co. Not-so-old timers remember E.F. Hutton and Kidder Peabody. Now we can add Bear Stearns and Lehman Bros. to the storied names that have fallen.
<hr size="1">We drop these names (and we could have mentioned a hundred more) for two reasons: (1) to remind readers that this isn't the first time an investment bank or brokerage has gone under, and (2) to point out that the country has always survived and grown.
In fact, what's happening now is quite normal in a financial system characterized by booms that lead to excesses that then require corrections before any renewal takes place. We'd be hard-pressed to remember a bear market when one or more financial firms didn't go out of business.
In the oil crisis of the 1970s, for example, major financial companies such as Penn Central and Franklin National went bust. The booming '80s saw hundreds of banks go belly up due to bad loans made to the farm sector and the Third World, and, later, S&L loans to U.S. homeowners.
The '90s? Remember the Long-Term Capital Management debacle in '98, following the Asia Crisis in '95 and coinciding with Russia's ruble meltdown? Then, too, we heard predictions that the world as we knew it was ending. It wasn't.
Wall Street: Old timers will recall F.I. DuPont or Goodbody & Co. Not-so-old timers remember E.F. Hutton and Kidder Peabody. Now we can add Bear Stearns and Lehman Bros. to the storied names that have fallen.
<hr size="1">We drop these names (and we could have mentioned a hundred more) for two reasons: (1) to remind readers that this isn't the first time an investment bank or brokerage has gone under, and (2) to point out that the country has always survived and grown.
In fact, what's happening now is quite normal in a financial system characterized by booms that lead to excesses that then require corrections before any renewal takes place. We'd be hard-pressed to remember a bear market when one or more financial firms didn't go out of business.
In the oil crisis of the 1970s, for example, major financial companies such as Penn Central and Franklin National went bust. The booming '80s saw hundreds of banks go belly up due to bad loans made to the farm sector and the Third World, and, later, S&L loans to U.S. homeowners.
The '90s? Remember the Long-Term Capital Management debacle in '98, following the Asia Crisis in '95 and coinciding with Russia's ruble meltdown? Then, too, we heard predictions that the world as we knew it was ending. It wasn't.
up although i think it is a remote possibility
