by Michael Pento, Market Oracle:
Global financial services firm Lehman Brother’s stock was in free-fall during the first week of September 2008. After making huge bets in the mortgage securities space, Lehman’s President Dick Fuld feared bankruptcy and frantically sought out a buyer. The company was hopeful to strike a weekend deal with either Barclays PLC or Bank of America.
Nevertheless, Lehman’s outsized investments in the mortgage market ultimately proved them too risky a partner for anyone; and the giant investment bank went belly-up on September 15th. Prior to this event, Lehman had reported record earnings every year from 2005 to 2007. The Street believed the company to be infallible. Analysts held on to hope until the bitter end. Their mantra went something like this, “nothing to see here, this is a small correction in a small section of the housing market that has little effect on the overall economy.”
RUSSIA INCREASES ITS RESERVES BY 31.1 TONNES (20 TONNES FROM THEIR OWN PRODUCTION AND 11 TONNES OF IMPORTED GOLD/SINGAPORE ADDS 12 TONNES AND SURPRISINGLY THAILAND ADDS A HUGE 21 TONNES OF GOLD: GOLD IS DEFINITELY MOVING FROM EAST TO WEST!!/ CHINA REFUSES TO TALK TO THE USA AS THEY CANCEL THEIR NEXT MEETING..THEY WILL NOT NEGOTIATE UNDER THE THREAT OF SANCTIONS AND THE TRADE WAR/BIG STORY: DRAGHI ANNOUNCES THAT INFLATION IN THE EU AREA IS “VIGOROUS” AND THAT WILL SET THE STAGE FOR THE ECB TO RAISE RATES AND PIERCE THE DEBT BALLOON/THERESA MAY AND HER PARTY IN TURMOIL AS HER BREXIT PLAN HAS FEW TAKERS/MEGA STORIES ON THE ROSENSTEIN SITUATION AND ON THE KAVANAUGH NOMINATION!!/PLUS OTHER SWAMP STORIES
This week the House of Representatives will vote on a package of bills making the temporary tax cuts contained in last year’s tax reform bill permanent and making additional tax law changes. The bills will likely pass in the House, but will almost certainly be filibustered in the Senate if the Senate leadership tries to bring them to the floor.
