Fiancial Meltdown

It has been over three months since my last post and I have come to the realization that I would rather read media publications than write. But, I am a published author, and I do have opinions that matter to others, so I have made myself sit down and post another blog article.

I was inspired by the newest financial collapse: Lehman Brothers investment bank.It was known for months in many financial circles that Lehman was struggling. Lehman's stock had plunged 95 percent from its 52-week high to $3.65 on Friday, September 12, 2008. This wiped out nearly $35 billion in shareholder wealth in just 10 months. That is $35,000,000,000 that evaporated in 10 months from one brokerage firm’s value. This was despite Lehman’s CEO, Richard Fuld’s reassurances of Lehman’s strength.

Bear Stearns came as a surprise, but Lehman was expected. The latest is that Barclays Bank has backed out of it's offer to save Lehman, but Bank of America might still be a player to buy up the pieces, just like they did for Countrywide, the mortgage lender.

It is likely there will be more fallout in the financial services industry before this mortgage crisis is complete. From Daniel Alpert, Managing Director of Westwood Capital, LLC, it is estimated that banks and lenders have recognized about $550 billion of the $1.25 trillion in losses that he expects to be attributed to the mortgage meltdown.

The problem is the financial landscape is changing so often it is hard to keep up with the bad news. On this Sunday at 11 a.m. I wrote about the possible purchase of Lehman by either Bank of America or Barclays Bank. By 5 p.m., Barclays had already backed out.

I have been working on updating my best selling "Wealth On Any Income" book for several months now, and I just cannot keep up with the awful financial landscape. My new book will have the title "Thriving from the Economic Meltdown" so that readers can see what they need to do in these difficult times.

Regardless of how bad it gets for the banks, brokerage firms, and mortgage industry, there are still basic concepts that will keep the average person financial solvent. Ten "galley proof" copies of "Thriving from the Economic Meltdown" have been printed up, and it should be ready for release in another month or so. I will keep you posted.
Rennie