What a crazy day - at 8 in the morning the first thing I see in the news is that Lehman Bros. had plummeted to $3.50 and that the Dow fell 384 points… before trading even began.

Following the media coverage all day today I must say that there is a certain amount of hysteria going on that is both over the top yet a little justified - the 4th largest investment in America, with a $600B debt, collapsed. During the course of the day the company’s stock plummeted from a $3.50 low down to a measily 19 cents. This is pretty extreme considering the stock was around $60 a year ago. But such is ones fate when playing games that aren’t meant to be played. Lehman is the victim of the problem it helped cause - the subprime mortgage crisis, a situation where money was loaned out to parties incapable of paying it back.

So the question is what happens to all the people who had invested in them? Obviously they’ve lost a lot of money and stocks are down on a global level. How are we going to recover? How bad is it for those who owe them money? Check the news - nobody knows what’s going to happen at this point. And that’s bullshit.

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