This the normal site almost everywhere in the US now. Are we prepared? Is this an opportunity or is this a threat? Share your thoughts here. Before the world is going down totally we need to learn from this crisis.

As the current crisis continues to wreck havoc across the world, global investment bank Lehman Brothers Holding Inc and financial advisory company Merill Lynch & Co Inc have become the latest victims in the US. The bankruptcy of Lehman Brothers will become the largest bankruptcy in the corporate history of the US. USA’s largest insurance company, AIG, also stands on the brink of collapse. The market remains in a state of shock, being unable to realize and cope with all consequences of the recent event.

Recently AIG General Insurance’s CEO Brad M Bennett said that 100% of its asset were invested in Malaysia. “Our capital and margin of solvency are well in excess of what is required by Bank Negara Malaysia to meet our obligations to policyholders”. Maybe at least AIG Malaysia will survive in the current economic tsunami but we need to see this scenario and remember even those who looked untouchable have toppled - Bear Stearns, Lehman, Merill’s.

On the local front in Malaysia, however, several funds have recently been launched to capitalize on the expected financial recovery, with many of them investing in global financial institutions. However, in the light of the latest developments, should investors do a rethink? The outlook for the market looks bleak it seems.

One interesting note I read today is Gates wasn’t concerned about the state of the U.S. economy in the long run. Gates seemed to be cool, or not terribly worried, about the U.S. financial crisis. “The U.S. economy in the long run is going to do very, very well. There are some interesting and meaningful decisions to be made in the next weeks,” Gates said. Read his side of the story on the current financial crisis here, “Gates takes U.S. financial crisis in stride“.

Read more about US financial crisis:

1. U.S. financial crisis spreads toward your wallet
2. ADB chief: Asian economy unhurt by global crisis
3. IMF says US crisis is ‘largest financial shock since Great Depression’
4. ‘The World As We Know It Is Going Down’

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