Western Railroad Discussion > Lehman Brothers & Merrill Lynch affect on RR?

Wall Street took a big hit with the collapse of Lehman Brothers investments and the sale of Merrill Lynch to Bank of America. Do these kinds of financial events have any direct affects on railroads? I saw this news on Good Morning America being broadcast from the GMA train. (It struck a small downed tree on the track and had to stop and untangle). Aaron 20

None that I can see. The Dow still defiantly refuses to be knocked down more than 300 points. And even then it's for no more than a day.

When you see it truncated to the tune of 500+ points in one day-and stays there for at least a month. Or gets below 8500 (which IMO is where it should be anyway). Then let's talk. Until then, as long as this up 300 one day, only ± 50 the next, then down 300 the next, then back up, etc pattern continues, I wouldn't be too worried.

I don't think it will be a problem as much for railroads as it will be for start ups and companies looking to expand.

With an established revenue stream, the railroads are less dependent on borrowing large sums of money for expansion than other businesses, and even then, they should be able to secure loans, as their long term risk seems rather low.