The bankruptcy of Lehman Brothers (NYSE:LEH) is “quite favorable,” says Gloom, Boom & Doom Report publisher Marc Faber.

“The air will be clean within the next one month and we can get a fairly good rebound starting from the middle of October until the spring of next year,” he said in a Bloomberg Television interview.

Faber also warns that AIG (NYSE:AIG) may be a “much bigger problem” than Lehman…

I have often commented about the problem of personal savings. We worry about the lack of savings here in the US, but many do not understand that if everyone started to save 5% of there income immediately that it would seriously impact consumer spending, pushing the US into a recession.

British consumers are running out of credit. Stock markets took a serious hammering yesterday. The FTSE 100 lost nearly 150 points to close at 5,518. Over in the US, the Dow Jones dived by more than 350 points, to close at 11,453. This morning, the Asian markets followed suit, with the Nikkei 225 sliding nearly 300 points to 13,544 points.

Editor’s Note: The financial sector bubble is heading the same way as all other bubbles, says Bill Bonner in The Daily Reckoning Australia. It’s going to pop.

Everyone, but everyone, knows that stock markets globally are driven by two primal emotions, viz excessive greed (which brings about the end of a bull market) and fear (which signals the demise of the bear).

As you know, the biggest banks worldwide have owned up to enormous losses, now more than US$300 billion and still counting, over the last year. That includes the failure and bailout of the fourth largest U.S. investment bank, Bear Sterns.