Does anyone know when the Financial Crisis We Are?

If one thing is becoming clear in all the confusion that has caused the crisis in U.S. subprime mortgage market, and quickly spread into the rest of the international financial system is that the worst of the crisis has not passed all. After the explosion of the crisis and the announcement of huge losses and falling bodies weight during the first months of the onset of the crisis, many thought that the worst of it was over. However, the crisis episodes continued to occur at the beginning of this year and nearly seriously injure the major bond insurers affected by the crisis, MBIA (NYSE: MBI), Ambac Financial Group (NYSE: ABK) and FGIC, and about to bring down the two major U.S. mortgage firms, Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), which had to be rescued by the U.S. government The rescue of Fannie Mae and Freddie Mac brought to light the situation in the U.S. financial system remains perhaps as serious as the start of this crisis. That's at least what the market interpreted the announcement made the biggest bailout in U.S. history, which may involve a cost to the U.S. more than U.S. $ 200,000 million.

Immediately after learning about the rescue of these mortgage firms, Lehman Brothers (NYSE: LEH), the fourth largest investment bank on Wall Street and with 158 years of existence, confirmed that the worst of the crisis had not happened yet. Entity presented in red numbers for U.S. $ 6,000 million and questioned its survival.

The fear was that Lehman Brothers shares quoted on the close of last week at $ 3.80, when in February they were paid for about $ 66. While all is confusion, since the financial system has tried unsuccessfully so far, the rescue of Lehman Brothers. British bank Barclays Plc (LSE: BARC, NYSE: BCS), who was interested initially in its acquisition, has not reached an agreement to get support from others, or the provision of financial guarantees by the U.S. government, and that is why we gave up the attempt. For the British bank, Lehman would be impossible to keep without a U.S. government aid as granted in March to JPMorgan Chase (NYSE: JPM), complete the purchase of Bear Stearns. Paulson, speaking about and practicing dangerous sort of answer for Barclays, said that taxpayer funds should not be used again to rescue a financial firm ... I would not be where Paulson when the government of the United U.S. announces new bailout (which would not be surprising that occur during this week).

After the attempt to Barclays, Bank of America (NYSE: BAC) and two Asian funds were others interested in the acquisition of Lehman Brothers. In principle, it appears that the Bank of America also has abandoned the attempt. The truth beyond the outcome of this is that, the fourth largest bank in U.S. investment is facing perhaps his last hours of existence. But there's more news ... A few hours ago it was learned that Bank of America announced it is in advanced talks to buy Merrill Lynch (NYSE: MER), the third investment bank on Wall Street, for a total base of U.S. $ 38,250 million. Merrill Lynch, whose shares last Friday reported a fall of over 12% in value, and that as a result of the subprime crisis, has lost about U.S. $ 52,000 million, is another entity that runs a serious risk of falling, so it would not look askance accept the proposal of Bank of America. As can be seen, then spent more than a year into this crisis, on possible new victims are not talking of smaller entities (or even medium-sized), but big players in the U.S. and international financial system.

The severity of the crisis made evident in these events to talk about economic recovery in the U.S. resulting in the coming months as utopian thinking. It is becoming increasingly clear that the worst of the financial crisis probably has not happened yet, but does anyone know when the financial crisis we find ourselves? We may not know or governments themselves ... We will meet again tomorrow, Horacio Pozzo

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