Today's Top Videos: Lehman, Pimco, Ike & More...
Top economists discuss the fate of Lehman Brothers and how the company's fate will affect the stock market, while the CEO of Ford restructures his company—focusing on improving fuel mileage and efficiency. Plus, Hurricane Ike is expected to strike the southern US coast early on Saturday, bringing a massive storm surge that could prove fatal for those who have not left the area. Following are today's top videos:
The Price We'll Pay
“There’s a big downside risk to the stock market [if Lehman Brothers does not merge and if it fails] and what’s key is that in the market, we see credit spreads much narrower going into the Lehman debacle as we did when we went into the Bear Stearns debacle. And the reason is we’ve had months of this complacency developing about Federal bailout.”
—David Kotok, CIO & Chairman, Cumberland Advisors
Ford Restructuring Plan
“As we went through the 2007 energy independence project, we agreed to make a significant improvement in fuel mileage and efficiency. And we made that commitment and we believe it’s the right thing to do."
—Alan Mulally, CEO, Ford Motor
New from CNBC.com:
Bearing Down on Texas
“The sky is darkening [here in Texas] and the waters here are rising and this storm is coming in. The forecast only began to shift this far to the north a days ago so time is really running out now for people who didn’t have a whole lot of time to begin with to evacuate. The evacuation process, despite a few traffic jams here and there, have gone relatively orderly…”
—Scott Cohn, CNBC’s Business News
Pimco's El-Erian on Financials
“The world changed very quickly and it caught the financials systems off guard and it simply did not have enough capital to support all the leverage in the system. So the best choice was to raise more capital—that is now very difficult. So that only leaves you with two choices: you either sell assets, or sell businesses. And when everyone’s trying to do it, it becomes very difficult.”
—Mohamed El-Erian, co-CEO & CIO, Pimco