When Mukesh is shifting to his new most expansive house in the world? any bodys know?

Dont you think that our beloved Ambanis has sell his & his friends and relative stake in 52 week high in big way? can we start disccusion on this topic...

actual involvment with Lehman is aroun Rs.8000/-Cr. this is insider information from top executive of ICICI so sell soon and get out asp this bank is under big trouble ...

Lehman files for bankruptcy, battles to avert liquidation
Email Print Normal font Large font September 16, 2008 - 6:49AM

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Troubled Wall Street giant Lehman Brothers sought bankruptcy protection Monday after a frantic weekend of talks failed to find a buyer for the firm ravaged by credit and real estate woes in a shaken financial system.

In a surprise for some analysts, Lehman said it was seeking reorganisation under Chapter 11 of the bankruptcy code, a sign that it was still holding out hope for survival in some form.

The massive bankruptcy filing in US federal court in New York listed 639 billion US dollars in assets at 613 billion in debts.

The news of Lehman's collapse prompted a bloodbath in global financial markets as traders flocked to safer Treasury bonds on fears of more dominoes falling in the banking system.

Some analysts said the Federal Reserve, which took a series of steps Sunday and Monday to boost liquidity available to the financial system may need to cut interest rates at its Tuesday policy meeting.

"The sudden bankruptcy of Lehman Brothers over the weekend has led to another dangerous escalation of the crisis in the US financial markets," said Brian Bethune, economist at Global Insight.

"The economy is very weak, the recession wolves are pounding down the door and the financial system faces new deflationary threats from the bankruptcy of Lehman Brothers. This is an emergency situation and an aggressive response from the Fed is needed."

Lehman shares plunged 94 percent to 21 cents after the news. Meanwhile American International Group, one of the world's biggest insurance companies, slid 60 percent to 4.76 US dollars on fears it may too face a cash crunch and credit downgrade.

Merrill Lynch, another white-shoe Wall Street firm, managed to get a lifeline over the weekend with a deal to sell itself for 50 billion US dollars to Bank of America. Merrill shares rose 0.06 percent to 17.06 US dollars.

The news came after a weekend of crisis talks involving US Treasury and Federal Reserve officials failed to head off a collapse of Lehman Brothers which some say could send shockwaves through the global financial system.

"The remaining Wall Street firms are scrambling to match as many of Lehman's offsetting positions as possible to avoid a complete liquidation wipeout," said Ed Yardeni at Yardeni Research.

"Another potential calamity would be a fire sale of Lehman's distressed assets -- such as commercial real estate. This would push prices even lower and potentially force other firms to mark down once again the value of their own holdings."

Lehman Brothers said its filing was to exclude the broker-dealer operations, the company, said, adding that operations of the brokerage arm and its Neuberger Berman asset management division would continue to trade.

The statement said Lehman was "exploring the sale of its broker-dealer operations and, as previously announced, is in advanced discussions with a number of potential purchasers to sell its investment management division."

Lehman Brothers was the fourth-biggest US investment bank, dating back to 1850 with a staff of some 27,000 people but that counted for naught, after writedowns of 13.8 billion US dollars on the US subprime or higher risk home loan crisis.

Under steadily mounting pressure, especially after rival Bear Stearns was bailed out earlier in the year, Lehman Brothers tried to find a savior too but a quarterly loss of 3.9 billion US dollars and planned radical asset sales made buyers reluctant to step in without US government backing.

Yet some said that despite the turmoil, Lehman's failure may serve to purge the financial system of its troubles and set the stage for recovery.

"The darker view is that this will be the catalyst for a chain of failures or bankruptcies throughout the financial system, exacerbating the credit crunch and the recession," said Mark Zandi, chief economist at Economy.com.

"A more upbeat perspective sees these events as a catharsis that will make the financial system more resilient. Bank of America's acquisition of Merrill Lynch testifies to this more optimistic view."

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Wall Street shakeout sends TSX down 500 points to near bear market territory
50 minutes ago

TORONTO — A shakeout on Wall Street pushed world oil prices to their lowest level in half a year and sent the Toronto stock market plunging more than 500 points Monday, dragging Canada\\`s main stock exchange into near bear-market territory.

Oil prices closed below US0 a barrel for the first time in six months and the TSX pared 515.55 points, as the demise of the Lehman Brothers brokerage and the sale of Merrill Lynch deepened worries about the weakened U.S. economy and the spillover around the world.

The Canadian market fell more than four per cent and is down 18.7 per cent from its most recent high June 18. A bear market is generally defined as a 20 per cent decline in a market from its most recent high.

The selloff in recent months has wiped more than 0 billion of market value from the stocks listed on the TSX, affecting the value of Canadian pension plans, RRSPs, mutual funds and other equities investments.

On Wall Street, U.S. stocks suffered their worst day in seven years Monday as the Dow Jones industrial average lost more than 500 points, its steepest point drop since the day the stock market reopened after the Sept. 11, 2001, terror attacks.

In the U.S., about US0 billion evaporated from U.S. retirement plans, pension funds and other investments after Monday\\`s trading.

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USA per Capita income is $17,000/-USD
INDIA per apita income is $275/-USD

so why we are comparing our selves with USA Our Great Industrialist Shri Mukesh Ambani Last year gifted designer private jet aircratf worth Rs.300 Cr. on birthday ,Next birthday he is going to gift Rs.8000 Cr.Villa to her wife minse our country have great growth inspite of World bank says that we are poorest among all the country even laser then sub sahara

so brother dont worry be happy India is run by God him self we have great honest politician,Industrialist,Operator stock brokers who take care of your investment so stay invested and dont book profit...

Property price crashes cascade quickly
This is exactly what happened in Texas in the 1980s: A big real estate crash. This is what happens in every real estate crash, and the thing about real estate today is that it's all more interconnected. The internet is teeming with real estate. Everyone can check everybody else's prices instantly. Click on a website and you can check the price for any home for sale, virtually anywhere in the world.
Plus, people are more mobile today. They can more easily move from city to city, and do you know what that means for the housing bubble? It means that every action is systemic. It means that once this bubble bursts in one city, it may more easily spread. It's going to be ugly because we may be left with what happened in the Bay area and Silicon Valley after the dot-com boom: Million-dollar condos were abandoned. Million-dollar homes were abandoned. The builders were going crazy, thinking they were going to get rich selling these half-million-dollar condos to software entrepreneurs, who thought they were getting rich, because on paper, they were worth $10 million because they owned stock in a company that was fueled by investor cash (but had no customers).

It turned out the whole fiasco existed only on paper. Almost none of the dot-com companies were making any money doing anything, except trading pieces of paper. The same thing may happen in the housing market. The whole thing is an empty shell. It's eventually going to come tumbling down. The only question is whether it's going to be a correction or a crash (the difference being the severity and speed of the inevitable price corrections).
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Banks recall their home loans
What do you think the bank is going to do? Do you think the bank likes to have a loan out to an individual who owes them $90,000 on property that is only worth $50,000? Do you think they want that kind of risk exposure? Absolutely not. In fact, they will not let it stand. They will recall your loan.
Read the fine print on your home loan. Your bank can make you pay the difference between what your property is worth today, and what you owe them, plus a little bit more to make sure that you have at least 20 percent equity. So, let's do the math:

Your property is worth 50K now, and you owe 90K to the bank. The bank wants you to only owe 90 percent of 50K, which is $40,000. The bank only wants you to owe 40K, but the difference between 40K and 90K is 50K. In other words, the bank will come knocking on your door and say, "Write me a check for $50,000 today, and if you don't, we will foreclose your condo, take your property, and you still owe us $50,000. We'll take that out of your other house." So what happens next? Well, the owner panics and agrees to sell the condo, so that is one more condo on the market, suppressing prices even further.

The cascade continues. The domino effect accelerates across the entire economy. This is the house of cards collapsing right before your very eyes, and now the bank is after your primary residence, and they want 50K. You paid $200,000 for your primary residence, and let's say you have $50,000 worth of equity. Do you think you can take out $50,000 on a house that's worth $200,000 when you only have $50,000 in equity? Of course not. The bank will not loan you 50K on a $200,000 house that you already owe $150,000 on. In the best-case scenario, they will loan you $10,000 on that house, because they don't want to go beyond 80 percent of the market value.

Basically, the maximum you could take out of that house is $160,000, because that's 80 percent of $200,000, and you already owe $150,000. So you can only borrow $10,000. You get a second mortgage, you take out $10,000 more. You pay that to the bank that you owed $50,000 to, because you lost $50,000 on the condo. Guess what? You still owe them $40,000. What are you going to do now? You still owe them $40,000 and you're maxed out on home equity loans on your primary residence. To make matters worse, the value of your primary residence may be falling, too.

Do you see how this cascade continues? What people will be forced to do, unless they happen to have $40,000 sitting in the bank, is downsize. They're going to sell their primary residence and move into the condo (that they thought was their "second home" but now becomes their primary residence). Do you see what I'm saying? They're going to sell their bigger property and move into their smaller one. Before all this happened, they thought they were going to live in their big house and make a fortune on the price doubling of this secondary residence. What they didn't figure was that the housing bubble would crash. So, what they end up doing is selling their primary residence and moving into the condo or secondary residence
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This is good time to buy DLF. hurry up.. The company is performing well....

Dear Bhatt, Statics do not revel complete truth, than why be so cynical? Some more figures if it will interest you :- (1) Cost of one pack of lunch at NYC Grand Central $12, Cost of similar lunch by Narulas at CP New Delhi $2 (2) Cost of milk with 0.5% fat $1.5 in NYC, In India $0.36/litter. (3) Cost of one kg branded atta in NYC $3.5, ITC atta $0.34/kg, similarly bread, vegetables, fruits are costlier by two to three times. (4) Cost of two bed room house on 4000sq mtr at West port some 50 miles from NYC $ 1 million, My farm house near Palwal on one acre of land $90000/. Americans pay much higher rates of direct taxes, larger percentage of people pay full taxes & tax evaders are much less. Stock market profits are fully taxed, dividend income are also taxed still very large no of people put their hard earned money in the market. Tax evader population of India comprises all sections and politicians,industrialist, operators stock brokers are also our brothers, sisters and other relations. We all must participate to eradicate corruption to ensure all inclusive growth. There is no point just being cynical GET GOING. Best wishes. ...

The US i-Banks have huge investment in Indian realty. They will now sell their stake at any price to get out and that will bring the valuations of realty companies crashing down. Be ready for Unitech below 100 and DLF below 300. It is coming......

I also thought India is run by GOD as everybody thinks, but now I feel even 'GOD is Run' by this Operator-- Promoter NEXUS. ...

i fully agree that we are running on gods mercy, all politicians are busy screwing the country. who should take the blame for the volatility in the market. i think as chidambaram we have the worst ever FM....

I think the price of a stock should be related to the dividend. It needs to over or underpriced w r t that. e.g. If a stock carries a dividend of 10 Rs, based on it\\`s probability to perform consistantly say next 5 years I might buy it at 25 Rs and vice versa. There should be some limitation to the speculation one can do like say +/- 300% not more than that. That is a Rs 10 dividend paying share can be at the most be bought at Rs 30/- not more than that. Well I mean we need to bring some sense of realisticness that makes it NOT look a la gambling place , if we need to depend on it for our lives....

Dear Bhatt, no body can predict stock market valutions or cry "eureka-eureka". The valutions are based on real and notional wealth. Multiplicity of reasons require very detailed discussion. Suffice to state that valutions are based on efficient market theory but speculators play very important role in demand and supply equation buildig perception & hype. Tailenders suffer. Suckers are born and smart guys like you make money but I am sure you are also much more knowledgable to take a complete holistic view. If a simplistic view as enumerated by you was possible we all would have made tonns of money. Yes, I agree that your above stated theory can form part of an important initial lesson for new investors. Best wishes....