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POPSLehman Bros Failure Looms, Stock in Free Fall Bear Stearns was first, then Freddie and Fannie last week, now Lehman is at the plate, and Washington Mutual on deck. The latter two are likely to strike out financially like the previous, all in the ninth inning of Bush's term and an inept Congress. (Democrats scramble to freeze foreclosures in an election season, which only delays the inevitable for people who have defaulted, and further stresses lenders who cannot liquidate bad debt.) As the article says, if they do, the Fed will ride in, absorb the debt and print the money for it (causing a weaker dollar, and thus inflation), as the major banking institutions of America become virtually Nationalized, and the Government will then play the Collection agency for defaulted loans. The mirage of America's financial prosperity and stability is falling, and as the Fed chairman warned a week ago, the fallout has not even begun.
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