Kopi-Oh Times

Wall Street Crash? Financial Companies In Trouble

The news of Lehman Brothers filing for bankruptcy, Merrill Lynch bought, AIG in crisis, shocked many from all parts of the world. WIth all these negative news surrounding us, we as small investors, are unable to do much. I would suggest taking a seat back, relook at your portfolio and instead of lamenting, try to look out for opportunities and incoming trends in the financial industry.

This article gives a view of what is expected to come, I personally like the way the author portrays, calm and prepared to ride out the storm.  However do note that this is more geared towards UK audience.

http://www.independent.co.uk/news/business/analysis-and-features/what-the-lehman-collapse-means-for-us-all-931986.html

I also read up on WHY Lehman Brothers went under:

http://www.independent.co.uk/news/business/analysis-and-features/stephen-foley-why-lehman-brothers-went-under-931988.html

Above article talks about Leverage.  Most articles I read are talking about excessive leverage that banks and financial institutions play.  Leverage is using debt to amplify gain, but people forgot that losses get amplified as well.

Finally, read this up, another article on what is to come as well:

http://www.bloggingstocks.com/2008/09/15/what-the-financial-meltdown-means-to-you-if-youre-not-in-fin/

The author presents his information in a very simple to understand format that I really liked. At least, I am more at peace with myself after reading their articles. Personally I want to agree with the author of bloggingstocks that economy may NOT come crashing down as yet, but is difficult to say.   The limelight is with AIG for now, let’s see how who will be the white knight saving AIG or will AIG be able to save themselves?