Nonpretentious: Your Home for Meltdown Madness
Well, it’s no catastrophe — yet. The Dow was down around 500 pts by the end of trading — it’s worst drop in 7 years. But we’re not out of the woods. When AIG goes under, there’s no telling how much farther it could go. Barring a miracle, AIG has a few days of life remaining at most. And then Lehman Brothers is going to have to liquidate its rather extensive real estate holdings, which could send real estate values even farther into the shitter (unfortunately, there’s no such thing as a bankruptcy reorganization for a financial service company like Lehman). Since a large part of the mortgage meltdown is tied to the drop in real estate values, this theoretically could cause further write downs by other large institutions. And who knows what firm will fall next. Plus, we’re not out of the woods entirely with commecial real estate. Will there be a crisis there? Who knows. We thought not, but I’m not sure anyone can predict what’s going to happen right now. If Washington Mutual goes under, as well, then I’m not sure where all this will end up.
Scary shit — especially if you’re hunting for a job in New York right now like me. Blah.