But, I did tell you to get into the bond market and treasuries
From the news this morning:Changes rock Wall Street
* Story Highlights
* Lehman Brothers investment bank announces it's filing for bankruptcy
* Bank of America purchasing Merrill Lynch in all-stock, $50 billion deal
* U.S. markets expected to see steep sell-off Monday
* Merrill deal seen as positive that may partly offset negatives from Lehman's fall
(CNN) -- The venerable Lehman Brothers investment bank said early Monday that it will file for bankruptcy, while Bank of America unveiled plans to buy Merrill Lynch -- two pieces of news that profoundly alter the American financial landscape.
The fast-paced changes capped a roller-coaster Wall Street weekend and threatened to stir up U.S. financial markets already reeling from woes at other major financial firms and mortgage financing titans Fannie Mae and Freddie Mac.
"This crisis is clearly deeper than anybody had imagined only a short time ago," Peter Stein, an associate editor at The Wall Street Journal in Asia, told CNN.
David Ellis of CNNMoney.com contributed to this report.
Because people are suddenly waking up and going "OH CRAP!!!" we get the following:
BOND REPORTTreasurys jump as Wall Street crisis escalates
U.S. debt gains most since September 2001 on flight to quality
By Deborah Levine, MarketWatch
Last update: 9:55 a.m. EDT Sept. 15, 2008
NEW YORK (MarketWatch) -- Treasurys jumped Monday, pushing yields down by the most since September 2001, as investors clamored for the safety of government debt in the wake of Lehman's bankruptcy, Merrill Lynch's demise and AIG's need for cash.
Two-year note yields dropped (UST2YR:, , ) 37 basis points, or 0.37%, to 1.86%, the biggest decline since Sept. 17, the first day bonds traded after the terrorist attacks. The yield is the lowest since April.
"It's definitely an extraordinary set of circumstances and I don't know if it's a culmination," said Jason Brady, who helps oversee about $6 billion in fixed-income assets at Thornburg Investment Management. "There isn't a lot of hope that this is going to turn around anytime soon. People would rather own things they don't have to think about so are buying Treasurys." [...]
I did warn you. It is happening. The worst is STILL yet to come. I am sure of it.UPDATE:
ReutersWilbur Ross sees about 1,000 bank closures: report
Monday September 15, 3:18 am ET
(Reuters) - Wilbur Ross, founder of private equity firm WL Ross & Co LLC, expects as many as a thousand U.S. bank closures in the coming months, CNBC said on its website on Monday. [...]
More to come. Definitely.