Jim’s Rant For The Day. Lehman Brothers Crash Horn Again.

Today Sec. of the Treasury Steve Mnuchin contacted five of the major banks in the U. S. to inquire about their liquidity for Monday’s business day. The last time this was done was in September of 2008, when the entire financial system was a few hours away from crashing globally. It was done because the other big banks no longer trusted the ability of Lehman Brothers to pay back the one day loans they were making to Lehman, putting Lehman in a state of non-liquidity, which caused it to file for bankruptcy and forcing the U.S. to pay out Trillions in bail out funding for the banks.

It appears that the Federal Reserve is cutting off credit to the banks and now those banks are cutting off credit to each other – another Lehman Brothers moment.

Mnuchin wants to be sure the banks get through tomorrow. But what about the rest of the week and the following month? Is the Lehman Brothers crash horn sounding again for all the big banks as the stock market crashes and the big banks have to pay off Billion and Trillion dollar derivatives guaranteeing investors that the stock market will never go down? Stay tuned Folks.