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qassy!
09-15-2008, 06:52 PM
Hello All

Lehman Brothers the 3rd or 4th largest investment bank in the US filled for bankruptcy today. - because of this the stock market tumbled today

This is going to affect the credit crunch big time, because how complex there dealings are.

not only that 25k employees are jobless!

Kind Regards
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IbnAbdulHakim
09-15-2008, 06:55 PM
^ i never even heard of them bro

but you mentioned they are in the US, would that affect londoners?

i honestly dont even know what ac redit crunch is
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qassy!
09-15-2008, 06:58 PM
format_quote Originally Posted by IbnAbdulHakim
^ i never even heard of them bro

but you mentioned they are in the US, would that affect londoners?

i honestly dont even know what ac redit crunch is
of course it will, there investment banking so they have investments in many companies like pension angencys have dealings with Lehman Brothers, there deals are so complex it will take months for people to fid out the real damage
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IbnAbdulHakim
09-15-2008, 07:07 PM
^ i see, then i guess we wont really know who it affects
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Questfortruth
09-15-2008, 07:08 PM
American economy is screwed. American economy is going down and taking the world with them.
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qassy!
09-15-2008, 07:09 PM
format_quote Originally Posted by IbnAbdulHakim
^ i see, then i guess we wont really know who it affects
but the credit crunh will only get worse.....
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qassy!
09-15-2008, 07:10 PM
format_quote Originally Posted by Questfortruth
American economy is screwed. American economy is going down and taking the world with them.
Its even the UK, Northern Rock? but because america is so big everyone is worrying even AGI or AI (dont know the name) americans largest insurance company wants to borrow $40 billion......and if they dont get that what will happen!!!
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Questfortruth
09-15-2008, 07:14 PM
format_quote Originally Posted by qassy!
Its even the UK, Northern Rock? but because america is so big everyone is worrying even AGI or AI (dont know the name) americans largest insurance company wants to borrow $40 billion......and if they dont get that what will happen!!!
If American economy went down alot. Would this affect the IT jobs outsourced in India?
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qassy!
09-15-2008, 07:14 PM
format_quote Originally Posted by Questfortruth
If American economy went down alot. Would this affect the IT jobs outsourced in India?
it affects everything....what sort of it jobs?
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Questfortruth
09-15-2008, 07:18 PM
format_quote Originally Posted by qassy!
it affects everything....what sort of it jobs?
computer system analyst and IP engineering
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qassy!
09-15-2008, 07:20 PM
format_quote Originally Posted by Questfortruth
computer system analyst and IP engineering
well.....credit crunch affects all industrys, inshallah nothing will hapeppn 2 ur job
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Questfortruth
09-15-2008, 07:35 PM
format_quote Originally Posted by qassy!
well.....credit crunch affects all industrys, inshallah nothing will hapeppn 2 ur job
oh no its not my job its my cousins that live in India. Yeah but inshallah nothing will happen to their jobs.
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S_87
09-15-2008, 08:14 PM
format_quote Originally Posted by IbnAbdulHakim

but you mentioned they are in the US, would that affect londoners?

i honestly dont even know what ac redit crunch is
yes it will affect the UK big time
This country is gonna talk itself into recession imo :rolleyes:
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Danah
09-15-2008, 08:14 PM
I just watched that on the TV. it breaks down most the stock markets in the Middle east if not all hardly since the most of them linking their currencies with the dollar

its really a miserable situation on our stock market !!
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qassy!
09-15-2008, 08:32 PM
WELL THE STOCK MARKET IS SO BAD!!!!!

£50billion has been lost of compaines values today in ftse 100 thats how bad it is
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Kas1m
09-16-2008, 06:18 AM
Never never ever heard of lehman brothers in my life now all of the sudden im hearing all about them.
The stock market. I think they are now like a mad dog with ties loose, scratching heads and shouting in the phone mouth. One pic particular describes it.
Its a panic state.
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Danah
09-16-2008, 06:39 AM
Global stock markets plunged Monday as the dramatic collapse of US investment bank Lehman Brothers sparked steep losses across the financial sector, dealers said.

Wall Street slumped in opening trade after a bankruptcy filing by Lehman Brothers and the distress sale of Wall Street rival Merrill Lynch.

New York's Dow Jones Industrial Average shed 2.53 per cent after European stock markets tumbled as much as five per cent.

Major central banks, led by the US Federal Reserve, rushed to inject tens of billions of dollars into money markets on Monday as Asian indices also closed sharply lower and Gulf markets lost up to seven per cent in value.

Elsewhere, the dollar fell heavily against the euro before rebounding in volatile trade, while oil prices slumped to seven-month lows under 93 dollars a barrel on fears about weakening energy demand.

"The collapse of Lehman Brothers has sent a major jolt through global financial markets as it is by far the biggest victim of the credit crisis that started in August 2007 and had been considered too big to fail," said Global Insight economist Howard Archer.

"There is obviously widespread concern about other banks' exposure to Lehman Brothers, not only in the US but also in Europe. Lehman's collapse also increases concerns that other banks could fail."

Europe's main stock markets recorded falls of more than five per cent before clawing back some ground in late afternoon trade.

In London, banking group HBOS plunged 20.2 per cent and Barclays shed 10.8 per cent. German banks Commerzbank lost 11.7 percent and Deutsche Bank 8.24 per cent in Frankfurt.

In Paris, French peers Credit Agricole and Societe Generale saw their share prices slide by 11.9 per cent and 10.9 per cent respectively.

Lehman Brothers filed for bankruptcy on Monday after a frantic weekend of negotiations failed to arrange a rescue.

"This story is likely to dominate proceeding for the next few sessions, dragging financial stocks further in to the red, creating yet more fears over the strength of the global financial system," said CMC Markets dealer Ian Griffiths.

"The news will totally eclipse the fact that oil is trading below 100 dollars per barrel which usually would have boosted sentiment."

In late afternoon European trade, the Paris CAC 40 index of leading shares was down 4.32 per cent, London was off 4.54 per cent and Frankfurt lost 3.33 per cent.

Amid the fallout, the head of the British Bankers' Association, Angela Knight, told AFP that Britain's commercial banking sector was "safe and sound."

German banks' links to the collapsed Lehman Brothers were "manageable and can be dealt with," said the German finance ministry, adding that it was in close contact with its international partners.

Share price losses were also steep across Asia, with Taiwan stocks ending down 4.09 per cent and Philippine shares off 4.2 per cent. Sydney fought back slightly from earlier losses to end the day down 1.8 per cent.

Several major markets in the region, including Tokyo, Hong Kong, Shanghai and Seoul were closed for public holidays.

In the markets that were trading, financial stocks suffered most.

Lehman Brothers said that it intended to file for bankruptcy "in order to protect its assets and maximise value."

Bank of America meanwhile said it was buying Merrill Lynch for 50 billion dollars in a transaction that creates the world's largest financial services company.

"Wall Street is reeling this morning," said Chris Lafakis at Economy.com on Monday.

"Today will be difficult for equities as markets digest the events that unfolded over the weekend."
actually I 've never heard of this bank.........subhan allah I just knew about it when it collapsed, but there no doubt that it has its great impact on the majority of the world stock markets especially our local ones in ME


source:http://www.business24-7.ae/articles/...scollapse.aspx
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جوري
09-16-2008, 07:05 AM
that is suret al-Anfal for you...

إِنَّ الَّذِينَ كَفَرُواْ يُنفِقُونَ أَمْوَالَهُمْ لِيَصُدُّواْ عَن سَبِيلِ اللّهِ فَسَيُنفِقُونَهَا ثُمَّ تَكُونُ عَلَيْهِمْ حَسْرَةً ثُمَّ يُغْلَبُونَ وَالَّذِينَ كَفَرُواْ إِلَى جَهَنَّمَ يُحْشَرُونَ {36}
[Pickthal 8:36] Lo! those who disbelieve spend their wealth in order that they may debar (men) from the way of Allah. They will spend it, then it will become an anguish for them, then they will be conquered. And those who disbelieve will be gathered unto hell,

they will spend
it will be anguish for them ( i.e from the massive losses)
they will be conquered

I love that verse, especially when I browse the forum, and find these vehement kaffirs only taking delight at the plight of Muslims...
Let them have a taste of the misery and bankruptcy they have brought upon people. That is the price of illegal wars.. the price of usury, the price of having blood on ones hands.
let them elect the other moron, see if they desire another 8 years of the same crap.. they never learn until they end up not only with third world politics but economy as well!

:w:
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Kas1m
09-16-2008, 07:17 AM
I guess how many other names are there that we need to know. Let them collapse and let us know. Only way
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truemuslim
09-24-2008, 05:57 PM
lol i nevr even heard of them, until i see this thread then its alllll over the news :p
America is goin down because of ther stupid actions they do.
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Danah
09-24-2008, 06:44 PM
Bush had a plan to save the economy....... this was published last week in BBC world
actually his plan inspire many other Arab countries to the same with their financial market to raise the stock market as well.

they were just waiting for someone to start.....how pathetic!!!!!
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Eric H
09-24-2008, 08:34 PM
They might be going bust, but somehow there is still a fund of 2.5 billion dollars to be paid out in bonuses to staff. That sounds totally sick and wrong.

http://www.independent.co.uk/news/bu...ff-937560.html

Take care.

Eric
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Amadeus85
09-24-2008, 09:44 PM
format_quote Originally Posted by Skye Ephémérine

I love that verse, especially when I browse the forum, and find these vehement kaffirs only taking delight at the plight of Muslims...
Let them have a taste of the misery and bankruptcy they have brought upon people. That is the price of illegal wars.. the price of usury, the price of having blood on ones hands.
let them elect the other moron, see if they desire another 8 years of the same crap.. they never learn until they end up not only with third world politics but economy as well!

:w:
I think that You didnt read enough about this Bank. Lehman Brothers played important role in speculation of the oil prices, and this Bank was one of the reasons of the high oil prices lately. Lehman Brothers' speculations fed russian goverment, Hugo Chavez and Arab oil sheiks with billions of dollars. This was one of the reason why they became suspected for U.S administration and at the end finished their buisness.
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SixTen
09-24-2008, 10:19 PM
format_quote Originally Posted by IbnAbdulHakim
^ i see, then i guess we wont really know who it affects
It affects the whole world.
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IbnAbdulHakim
09-25-2008, 10:37 AM
format_quote Originally Posted by SixTen
It affects the whole world.
lazy fish :p

it is now down to you to explain HOW , have fun :D
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SixTen
09-25-2008, 01:17 PM
format_quote Originally Posted by IbnAbdulHakim
lazy fish :p

it is now down to you to explain HOW , have fun :D
Im lazy? The guy working in London not knowing what credit crunch is :exhausted!

But anyway

Steps to Credit Crunch
US mortgage lenders sell many inappropriate mortgages to customers with low income and poor credit. It is hoped with a booming housing market, the mortgages will remain affordable.
Often there were lax contols in the sale of mortgage products. Mortgage brokers got paid for selling a mortgage, so there was an incentive to sell mortgages even if they were too expensive.
To sell more profitable subprime mortgages, mortgage companies bundled the debt into consolidation packages and sold the debt on to other finance companies. In other words, mortgage companies borrowed to be able to lend mortgages. The lending was not financed out of saving accounts, for example.
Many of these mortgages had an introductory period of 1-2 years of very low interest rates. At the end of this period, interest rates increased.
In 2007, the US had to increase interest rates because of inflation. This made mortgage payments more expensive. Furthermore, many homeowners who had taken out mortgages 2 years earlier now faced ballooning mortgage payments as their introductory period ended.
This cause a rise in mortgage defaults, as many new homeowners could not afford mortgage payments. These defaults also signalled the end of the US housing boom. US house prices started to fall and this caused more mortgage problems. For example, people with 100% mortgages now faced negative equity. It also meant that the loans were no longer secured. If people did default, the bank couldn’t guarantee to recoup the initial loan.
The number of defaults caused many medium sized US mortgage companies to go bankrupt. However, the losses weren’t confined to mortgage lenders, many banks also lost billions of pounds in bad mortgage debt. Banks had to write off large losses and this made them reluctant to make any further lending, especially in the now dangerous subprime sector.
The result was that all around the world, it became very difficult to raise funds and borrow money. The cost of interbank lending has increased significantly. Often it was very difficult to borrow any money at all. The markets dried up. This affected many firms who had been exposed to the subprime lending. It also affected a wide variety of firms who now have difficulty borrowing money. For example, biotech companies rely on ‘high risk’ investment and are now struggling to get enough funds.
The slow down in borrowing has contributed to a slowing economy with the possibility of recession in the US a real problem.

Credit Crunch in the UK
UK mortgage lenders did not lend so many bad mortgages. Although mortgage lending became more relaxed in the past few years, it still had more controls in place than the US.
However, it caused very serious problems for Northern Rock. Northern rock had a high % of risky loans, but, also had the highest % of loans financed through reselling in the capital markets. When the subprime crisis hit, Northern Rock could no longer raise enough funds in the usual capital market. It was left with a shortfall and eventually had to make the humiliating step to asking the Bank of England for emergency funds. Because the Bank asked for emergency funds, this caused its customers to worry and start to withdraw savings (even though savings weren’t directly affected)
As a result of the credit crunch, the UK has seen a change in the mortgage market. Mortgages have become more expensive. Risky mortgage products like 125% mortgages have been removed from the market.
Since most banks lend more money then they take in deposits, they rely on lenders to balance the deficit. But lack of lenders, or expensive lending, leads to financial institutions unable to balance the deficit and hence why you saw banks fall. Their fault really, being greedy. Some banks have 8x more loans given out then they get cash in! If you want to go for a safe bank in the UK, I suggest HSBC, they have more deposits in then they loan out, which is pretty cool :P (think they are the only ones).
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IbnAbdulHakim
09-25-2008, 01:43 PM
^ LOL ok i admit it u aint lazy, coz i just couldnt be BOTHERed to read that ;D
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