Lehman up for sale

Saturday September 13, 2008 9:14 am

The shares of Lehman brothers were selling for only $3.65 at the close of trading on Wall Street yesterday. Fed officials were meeting with bank and industry officials urging them to get on with business of finding a buyer for the beleagured bank. The Fed and US Federal Government have apparently decided that they will let the bank go under if no buyer is found presuming that the collateral damage should be enough of a threat to convince other banks to buy it before it collapses entirely. This is another major body blow to the finance sector and along with failure of Bear Stearns guarantees that the repercussions of the sub-prime crisis will enter the history books as one of the greatest crises of the past 100 years.
Oil prices continued to play with the 100 $ barrier here and there falling below it . The hurricaine in the Gulf for the moment has prevented the price from dropping across the board into the 90s but it is only a matter of days before this happens despite the efforts of OPEC to restrict supplies.Other deflationary signs in the wind include the fall in wholesale prices by 0.9 % in the US. Interest rates should not and will not be raised.