What if Lehman had not died?

Hi every one, im posting a pretty brief post today, and prolly in the next couple of times i might be posting. not that i dont have wut to post, matter of fact I've ALOT!! but its only that im waiting for a kinda "rebirth" yea "the rebirth of Rod" coming soon:) well the date will be November 6th 2009. 9pm (local time). it'll be a friday in kampala, and boy, you dont want to know wut is gonna happen that day:)
You'll be totally BLOWN!!
well fast forward to the topic for today.....
one year back this month (September 15th 2008) the Giant bank Lehman Brothers filed for chapter 11 bankruptcy protection with the US bankruptcy court Southern District of New York (Manhattan)
It is claimed to today, that the collapse of Lehman sent panic waves through the entire wall street, and as a result;
1.The Dow Jones closed down just over 500 points on September 15, 2008, at the time the largest drop by points in a single day since the days following the attacks on September 11, 2001. (This drop was subsequently exceeded by an even larger plunge on September 29, 2008.)[1]

2. The collapse led to the depreciation in the price of commercial real estate. The prospect for Lehman's $4.3 billion in mortgage securities getting liquidated sparked a selloff in the commercial mortgage-backed securities (CMBS) market.[1]

3. After Constellation Energy (company that operates over 35 power plants in 11 states (mainly Maryland, Pennsylvania, New York, West Virginia, and California)) was reported to have exposure to Lehman, its stock went down 56% in the first day of trading having started at $67.87. The massive drop in stocks led to the New York Stock Exchange halting trade of Constellation. The next day, as the stock plummeted as low as $13 per share, Constellation announced it was hiring Morgan Stanley and UBS to advise it on "strategic alternatives" suggesting a buyout.[1]

The impact of Lehman's collapse is claimed to have been so dire on the entire global economy, and up to date, we are made to believe that this is what led to the current global economic melt down.

I've been scratching my head for almost a year now about Lehman's collapse and its impact, and i found myself with this question, that I would love for you great friends to help me with, (as much as u can).I've posted this question on some other blogs with a small write up that im going to paste here as well.


What if Lehman had not died?

Im no economist, or one really good at interpreting the maths and terms involved in economic discussions.But much as im not, directly and indirectly, i am a victim of the global financial melt down. After listening to the BBC drama "The day Lehman died" i summed up the whole episode into one thing, that lehman's death led to the collapse of the US economy and down went the European economy, and so did the entire world economy. Realizing this, i was left wondering, what if the FED had bailed out Lehman brothers, or what if Barclays had bought up Lehman brothers, and let Lehman live? would
the world economy have survived? do you think we some how could have kept our jobs and continue living life as normal, based on the survival on this one gigantic company? or it could have been just another life line, and we could have continued walking on egg shells, always fearing that the world economy is on the brink of failure? im confused trying to figure out this, what's your take?


thanks to you all
I remain yours truly
Rodger Kasule

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