Ask a Whartonite!

One of the most amazing things about a Penn education is how much you end up learning from your peers.  Below, we ask one of the Wharton students on our buddy list to explain a thing or two about this whole Lehman Brothers situation.

UTB: i need your wharton perspective UTB: and $20,000 UTB: or just the first thing GordonGekko: on what terms? GordonGekko: will you be posting collateral? GordonGekko: getting a cosigner? GordonGekko: what is your income? GordonGekko: projected after graduation income? GordonGekko: monthly expenses? UTB: whatever i spend on chicken GordonGekko: I believe i'll charge you...19% interest with minimum monthly payments of 250 GordonGekko: compounded continuously GordonGekko: (you're a poor credit risk) UTB: anyway, i had an idea for a blog post UTB: it will be called "a whartonite expains the lehman brothers thingy" UTB: or something GordonGekko: for the blog? UTB: DUH GordonGekko: ...you could get whatever i'd say from wikipedia you know UTB: no but you have to dumb it down UTB: for us english majors UTB: first question: how is this different from what happened with bear sterns? UTB: you're not typing!!!! GordonGekko: i'm BUSY GordonGekko: jeez, give me a minute UTB: HOW DARE YOU talk to me that way!!!!! GordonGekko: ok GordonGekko: hmmmmm GordonGekko: im trying to think about what terms can be used and what has to be explained GordonGekko: like "liquidity problem" GordonGekko: "insolvency" GordonGekko: "fire sale" UTB: who do you think will buy lehman? GordonGekko: it'll have to be a group of people GordonGekko: no one wants to buy it alone GordonGekko: and they're hesitant without government money UTB: what will happen to the people who want to work there? UTB: or already got offers there? GordonGekko: right now the word is bank of america with some foreign banks/sovereign wealth funds/maybe some private equity GordonGekko: they might have their offers rescinded UTB: is everyone who wants to go into finance screwed, basically? GordonGekko: it will be a bad two years GordonGekko: but we people at the bottom of the totem pole are cheap labor (believe it or not) compared to those higher up GordonGekko: so the cuts aren't as bad at the bottom GordonGekko: it would be like a plantation owner firing his slaves GordonGekko: just doesn't happen UTB: haha GordonGekko: bye bye lehman GordonGekko: that's good. i found out this girl i hate worked there over the summer GordonGekko: serves them right for hiring her