California Opinion of Lehman Brothers

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Kiyosaki had forecast the 2008 collapse of Lehman Brothers, which led to global recession. "When I predicted Lehman failing back in March 2008, people thought I was crazy. Five months later it actually happened," he said in an earlier Facebook post.

Another warning for the bank came recently when top economist Nouriel Roubini warned that Swiss lender Credit Suisse Group could be too big to be saved and that bad things can happen if it does not get capital in time. For the unaware, Roubini was among the first few to predict the 2008 financial crisis.

The San Francisco-based establishment, whose clients have withdrawn their funds en masse, is seeking to sell all or part of its assets to avoid bankruptcy. It has already contacted US federal authorities.

The dramatic fall of Lehman was due in large part to millions of risky mortgages propping up an unstable financial system. Homebuyers with mortgage payments they couldn't afford defaulted on their loans, sending shockwaves through Wall Street and leaving those borrowers vulnerable to foreclosure.

Kiyosaki had forecast the 2008 collapse of Lehman Brothers, which led to global recession. "When I predicted Lehman failing back in March 2008, people thought I was crazy. Five months later it actually happened," he said in an earlier Facebook post.

"The problem is the bond market, and my prediction, I called Lehman Brothers years ago, and I think the next bank to go is Credit Suisse," Mr Kiyosaki told Fox News. The Rich Dad Company co-founder explained how the bond market will put the US in "serious trouble" as he expects the American dollar to weaken.

Essentially, Repo 105 is an aggressive and deceitful accounting off-balance sheet device which was used to temporarily remove securities and troubled liabilities from Lehman's balance sheet while reporting its quarterly financial results to the public. These transactions were recorded as sales rather than as loans.

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California Opinion of Lehman Brothers