Sunday, September 14, 2008

Say Goodbye to Lehman Brothers and Merrill Lynch

Two Wall Street giants will be no more in the near future. Lehman Brothers will declare bankruptcy and Bank of America plans on buying Merrill Lynch. Will those anticipated runs on financial institutions happen with a big investment bank failure? Ask Peter Wallison of the American Enterprise Institute. He defended the government's bailout of Bear Sterns for such a reason on CSPAN. (Wallison panned the private business practices of Fannie Mae & Freddie Mac. Maybe, that will put a chink in the bi-partisan armor of privatizing all government functions.)

Also, conservative host Sean Hannity said claims the U.S. has seen a “dire” economy is “all based on a lie.” Will he change his tune after the demise of Lehman and the sale of Merrill?