October 10, 2008

Black Friday: US Stocks to plunge, Lehman derivatives to unwind; Dozens of banks may fail with credit default swaps

Today could be the beginning of the end as "the perfect storm" of financial bad news comes together.

As of 9:15 AM Eastern US time, Asian and European stock markets are in chaos with double-digit percentage losses that have been so profound, that exchanges in Austria, Russia, Australia and Indonesia SUSPENDED all trading!

The Dow Jones Industrial Average is already expected to open "sharply lower."

At 2:00 PM EDT today, the final price of the Lehman Brothers credit default swaps will be publicly released by the Bankruptcy court, which will tell everyone who insured against a Lehman default, how badly they must pony-up. The unraveling of those Lehman derivatives could take out a number of large US banks.

The US stock market opens at 9:30 AM today; it's going to be a wild day.