Lehman Brothers

.- Stagnating oil prices (easily surpassing the $ 100 a barrel), driven by geopolitical uncertainties, the collapse of stock markets and subsequent diversion of speculative investment market and the expected oil production cuts by the OPEC.

2.-Continued escalation of prices of staple foods (around 15%), due to the effect called "second round" (translation by companies from increased costs of crude oil and raw materials along with wage increases the prices of manufactured products; abusive margins of companies and brokers and a totally inefficient administration and lack of mechanisms to control the ceaseless desboque with consequent rises in inflation and subsequent contraction of consumption.

3.-runaway inflation rates close to 6% and unbridled growth of foreign debt (d 2.5 billion U.S. dollars) and current account deficit (15% of GDP) for 2008 as a result of the above two points, with a consequent drop in state revenues Autonomies and loss of purchasing power of workers in a near future due to salary increases below the inflation rate or the freezing or reducing them.

4 .- Rise in interest rates by the European Central Bank to reach 4.5% in the last quarter of 2008 with the aim of trying to curb rampant inflation in the euro zone (close to 5%) the immediate impact on mortgages and bank loans due to increases chilling Euribor (up almost 6%); economic strangulation consequent extensive social and dramatic increase in delinquencies and embargoes banking collapse of securities (around the IBEX 10,000 points at the end of the year) and diversion of investment to fixed income and real estate.

5 .- An increase in the rate of unemployment up to 12.5% at the end of 2008, due to the outbreak of the housing bubble and subsequent domino effect in the sectors linked to the construction of a united euro artificially appreciated that the cause of the bottleneck exports and the stagnation of the tourism sector (into recession in the second half of 2008 and ending the year with a meager increase of 1.5% of GDP), with the proverbial drop in state revenues and the consequent contraction of investments basic infrastructure and social service

I really don't think that it was necessary for lehman's to declare bankruptcy but feel that after the US government bailing out others they should have also considered helping Lehmans. I think that they have created an even bigger problem, and think of the lost money by shareholders. The government has created another down draft that will not be felt for a few months but think about it...the shareholders themselves maybe middle upper class citizens are now out every dollar invested in that bank and are now sitting with nothing as the SEC pushed Lehmans into the Pinksheets today Sept 18 2008. Many of those people have lost much of their life savings. What about the employees that were given stock options and thought of their shares in Lehmans as retirement. It just does not cut the cake...I think that this all moved way to fast and I truly think that the US government should have jumped and given some sort of a lifeline to Lehmans. I think there is bigger trouble coming yet.

poor technology, lack of enough capital,

lack of knowledge

It means Non Performing Loan

Water

Some of the best sites for economics articles include The Economist, which offers in-depth analysis and commentary on global economic issues, and the National Bureau of Economic Research (NBER), known for its working papers and research studies. The Brookings Institution also provides insightful articles and reports on various economic topics. For a more academic focus, the Journal of Economic Perspectives is a valuable resource featuring accessible reviews of economic research.

married Kathleen Ann Bailey

The collapse of Lehman Brothers in 2008 was notably predicted by a few financial analysts and economists, including Nouriel Roubini, who warned about the impending financial crisis due to the housing bubble and excessive risk-taking in the financial sector. Additionally, the investment bank itself faced warnings from its own analysts and some external observers, but these predictions were largely ignored by the broader market until it was too late. Ultimately, the failure of Lehman Brothers became a significant event that highlighted the vulnerabilities within the global financial system.

GAAP standards.

Lehman Brothers is a Financial Institute of USA.

they didnt do anything

yes they did

Srockholders are NOT creditors...in fact they are the owners of the company....the same ones that asked for protection in BK. The advantage to being a stockholder is your only liable up t the amount of your investment. To that regards, and I am one, basically =- we are screwed!

Yes.

The average variable cost curve compares the company's maximum performance to its present state. For example if the minimum profits are to the left of the AC it means the company will decrease profits by increasing their production. Therefore creating a curve.

Inventory need for the ongoing process and kept at a level that production will not be affected. Inventory kept for emergencies, or as a buffer for a sudden a surge in demand. Inventory that is only needed for one season, after which it is sold off or stored off-site.

Monopolists can often earn positive economic profits due to their market power, which allows them to set prices above marginal costs without competition. However, this profit is not guaranteed indefinitely; it may be eroded by potential market entry from competitors, changes in consumer demand, or regulatory interventions. Additionally, monopolists must still consider their costs and the elasticity of demand for their products when determining pricing and output levels. Therefore, while they have the potential for consistent profits, various factors can influence their ability to maintain these profits over time.