Bear Stearns Companies Inc. (BSC)
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- All Comments on BSC
- General Discussion on BSC
- Economic Outlook: Will the Ride Be Bumpy or Smooth? [view article]
- Concussions... Now The Repercussions: Hedge Funds Report Monday [view article]
- Jim Rogers on the Bear Stearns Bailout [view article]
- No Uptick Rule: A Convenient Scapegoat? [view article]
- FAS 157: Blackstone and Its Banker Buddies Have It Wrong [view article]
- The End of U.S. Financial Domination [view article]
- Federal Reserve Asks for Wall Street Bank Stress Tests [view article]
- Corporate Fraud + Government Intervention = Bailout Nation [view article]
- Bear Stearns: Follow the Puts [view article]
- May Take Several Years for the Financials to Work Out Their Kinks [view article]
- Mothers Work: Empire Waists and Imploding Hedge Fund Stakes [view article]
- Bear Stearns Conspiracy Watch: Bloomberg Piles It On [view article]
loading ...Recent BSC Articles
- Economic Outlook: Will the Ride Be Bumpy or Smooth?
- Bear Stearns: Follow the Puts
- Humpty Stearns Can't Go Back on the Wall
- Options Action on Bear Stearns, Pre-Collapse: Trade of the Century, If Legal
- Bear Stearns Conspiracy Watch: Bloomberg Piles It On
- You Mean Whirling Ben Graham?
- Federal Reserve Asks for Wall Street Bank Stress Tests
- CDS Market Is Holding Up
- The End of U.S. Financial Domination
- Corporate Fraud + Government Intervention = Bailout Nation
- Full List of Articles »
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The End of U.S. Financial Domination [view article]
Right on Eric!People who denigrate supporters of gold and silver will be asking themselves "why didn't I buy gold?"
My mother, who was European, told me stories about her father accumulating gold a little at a time over many years. When the European economies crashed, his gold kept a roof over their head and food on the table while many went hungry when the European economies crashed.
Keep on spreading the good word. One thing I would advise is that one take possession of one's gold. ETF's and investment pools are fraught with danger in the event of a severe financial collapse. Don't trust anyone with your gold. Reply
The End of U.S. Financial Domination [view article]
The question should be: who holds dollars? My understanding is that over 50% of the dollar supply is held by foreign central banks, foreign savers and investors and foreign institutions.The dollar is accepted as legal tender is most countries. In this content the dollar has value. I can go to almost any country in the world and use my dollars to buy goods, services and/or assets; the seller in turn will exchange their dollars for their own currency.
The country’s central bank is left holding the dollar, which they reinvest in incoming producing assets. Sovereign Wealth Funds are simply a national vehicle for investing surplus dollars and other currencies into wealth producing assets. These wealth producing assets will generate goods, services and/or assets that will be exchanged for currencies.
If one listens to our policy makers one thinks that this is a never ending circle that is raising the standard of living of the poor and downtrodden. The argument that one is exchanging something (goods, services, assets) for nothing (currencies) doesn’t hold water with them.
They respond that economies are operating in a globalized economic environment and currencies are simply a medium of exchange to make the process work effectively. Currencies are governed by treaties and treaties can be changed to accommodate changing conditions.
Because globalization is a new economic force, market forces have not yet worked through the system. These market forces will correct and strengthen the globalize economy not ruined it.
The policy makers say that people of economic doom are simply ignoramus’s who don’t understand how the system works.
Reply
The End of U.S. Financial Domination [view article]
First of all, it's "MORAL", not "MORALE".Second, you're a young fool.
You can't see a reason institutions are not allowed to fail because you have always lived in a world where they don't.
And you can dismiss "fiat paper" but it only makes you look stupider. Fiat money is the only kind of money there is. Since medieval times, we have known that the agreements behind banking (this "fiat" of which you speak) are many orders of magnitude more valuable than the hard assets that back them. That's just the math. I refer you to this paper:
frbatlanta.org/fileleg...
republished by the Atlanta fed.
Finally, the problem we now see is that for all the talk about market efficiency, our financial system was more than slow to put the bad results of bad credit decisions where they belong - onto the holders of equity.
Because of the "Invisible Hand" religion taught to you by people who should really know better, we came foolishly to believe that the financial industry would self-regulate the new world of private-label MBS and derivatives. About 700 years of market history should have told us that when there is nobody there insuring the quality of the inventory, an exchange will inevitably become a "Market For Lemons" and fall apart. It only happens EVERY SINGLE TIME. But this time, we knew better.
If you really want to see what some true tax-inefficiency looks like, keep pushing for liquidations and collapses - just like the Hoover Administration did. Maybe its the only way people can learn, but I hope not.
The bailout will not cause credit damage because the credit damage is already done. It's just a question of where it lands now. If our system of corporate ownership really was an efficient market - which it isn't - bad institutions should have been gobbled up by good institutions already and new capital should have flowed in to take advantage of the crisis mispricing of the financial assets (business efficiencies, valuable agreements) created by the MBS and derivatives markets (which certainly exist).
But since the system is intrinsically inefficient, debt and deception by management and rogue institutions were heaped onto the equity of the good parts of the system to the extent that it may already be broken. The failure of banks to do equity deals during the past little run-up is telling. It shows the private equity finance system in the first stage of failure.
THAT is why the government is coming in here. You don't want to see the second stage and you really don't want to see the third. Reply
The End of U.S. Financial Domination [view article]
I laugh at those people who THINK that gold/silver/platinum will "protect" their assets when the dollar shrinks in value like that of the "Weimar Republic!" There are perhaps only a few thousand precious metal investors out of a total 200 to 250 million American citizens. So.....when the value of the dollar drops to forty cents or less OR becomes inflated like that during pre WWII Germany, the Weimar Republic those individuals with gold/silver will be able to barter food/shelter etc with their buillon and NOT be noticed by those individuals who have "relatively worthless fiat money?" Guess what! I hope you have plenty of guns/ammo because once your gold/silver is spotted by the "less fortunate" YOU will become the target or "criminal minds." Globalism has so intertwined within all countries, all cultures, all business/corporations that when "America sneezes, Europe will catch cold!" London is purported to be the "New York" of Europe with regards to business. When our leaders realize that UNLESS WE stop being the "policeman" of democracy/terroism throughout the world because it is fastly becoming bankrupt; then Europe will have to pick up the tab for their own countries against Islamic extremism! ALL the countries of the world are run on "fiat currencies." All the other countries of the world are now experiencing the same problems that the US is with regards to "credit," and mortgages. Russia is the only country who is now on the "gold standard!" Looks like a "New World Order and a New World Government" is just around the corner! Just a fluke? It has been said that NOTHING in politics or finances is coincident but rather has been planned and implemented by such groups as the Bilderburgs, Illuminati, and the Banking interests for world domination! By the way, the Federal Reserve IS NOT a governmental department but is privately owned by the large banking corporations here in the US and abroad! Looks like Thomas Jefferson was right when he said that the Banks who could control the movement/flow of money can control the nations of the world!Reply
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The End of U.S. Financial Domination [view article]
Well, we may well have encounter a morale hazard but I think it's more likely you mean a moral hazard. ReplyPseudonym
The End of U.S. Financial Domination [view article]
The Gold price chart still looks awful, there's a 50/50 chance we are going to the ~$650 and ounce range.I'm a trend player and there is no obvious/strong up trend in the charts of gold. So for now there are better options.
I look at gold in the sub $700 range. Reply
Corporate Fraud + Government Intervention = Bailout Nation [view article]
"... the creation of a monied aristocracy around the federal government, in order to do it's bidding" Over 100 years of a shell game, and now the shells are wearing out so that anyone looking can see where the money is. Replyan
Corporate Fraud + Government Intervention = Bailout Nation [view article]
This is an incisive analysis. Every tax payer should feel indignant. The proble was created by greedy banking and mortage companies and irresponsible, speculative consumers. Of the two, the banks should bear the larger portion of the blame. It's may be wrong business decisions in some cases, and it's straight fraud and criminal intents in many other cases. Even the companies failed or went deep into trouble, their executives executives already made a fortune and some are stilling making an obscene amount of money. It makes no sense at all for us taxpayers to pay for those crooks. I am surprised some people here don't seem to share the rage. Those crooks (I mean executives of those mortage companies and banks who practiced predatory lending and collected dirty money) should go to jail. It's criminal act - as simple as that! It's a shame our government is covering them and whitewashing these criminal acts!!Reply
Corporate Fraud + Government Intervention = Bailout Nation [view article]
Gentlemen. Whatever comes down the pike we must stand our ground. We must clean out our own house and visit other nations afterwards to ask for grace periods to repay debt. Our military can protect us domestically without issue but it cannot fight a united Russia/Arab/Dragon simealtanously and if it comes to that, it certainly will not remain a conventional war...These competitor nations got the best of us and learned fast this last decade. We forgot that we are not the only nation on earth with supercomputers. They had the will, we didn't and Washington made it a heck of a lot easier for these nations to boot. Karl Marx noted in his writings that one day the Marxists will sell the rope for the West to hang itself. He was correct. The mere statement this was made should have forever stayed in our minds, especially considering communism was only recently surpressed by the early 1990's. Globalization was attempted 40 years too early but that didn't prevent the prideful and greedy from trying. Every empire tends to overstrech and receeds. Why are we different? But how we recover from this may be in the end more important to the globe then how we tempoarily fell.
The communists never left, only regrouped as communist light/fascist/socialis... Our friends in Washington seem to really admire Fidels, Hugos, Putin's and Zemin's. But of course, Friedman practically worshipped Pinochet. You liberal sheep are pathetic, but yet almost as pathetic is the semi-liberal sham conservatives. That word has no meaning today except to those visible and not connected whom are now being fleeced into financial extinction and subsequent revolt. Sheep led to the slaughter by a black robed sheppard is a fitting analogy. I guess pandering to liberal minority agendas for votes wasn't such a good idea after all. Ever hear of Judeo Christian values? You know, the ones we founded our nation on?
And meanwhile, the population through pain will learn to come together in sacrifice and change attitudes. Very few of us ran iBanks or were in Congress on the greatest theft of wealth the earth will likely ever see! However, we must demonstrate our leadership. 300 million can correct about 1,000 whom did this. And the 1,000 whom think the military will be firing off rounds at protestors like in Tienemen Square are mistaken.
The Bookeeper, I can help but your office won't make time. You prefer old chronies with no solutions and suffer the unfortunate encapsulation effect. Same as my approach to other older men whom no longer know the way out when the answer is an inch from there nose. I am not all wise, I am humble and spend half my life researching. These men mean well and have some money Bookeeper to educate but no clue how to harnass the collective of the US citizenship and mobilize them. The innovators whom were taught principles will pick up the slack and my job is to connect them all. You money guys just hang out with other money guys. Throwing it up in the air is not a solution. That investment needs to be focused by the entrepenuars. Wasn't this the way America worked at one point?!?! I would have thought you had all heard of a thing called the Internet. I suppose only the Democrat party has. Gee, I wonder why the dumb masses will vote the same House in again this year. I wish you could help, your heart is good. For that, I cannot be critical. If this sounds harsh, it is meant to be for education and action to wake you up. I apologize if you feel my statements are un-gentlemen like but even a gentlemen must strongly point out a weakness here or there in a battle plan. Reply
Corporate Fraud + Government Intervention = Bailout Nation [view article]
very entertaining-if it wasnt so sad.the big brains who caused this mess are laughing all the way to the bank with their legacy fortunes.the dumb-dumber americans keep electing the same crowd(9% approval rating).there are no stockholders only 'SUCKERHOLDERS".t... word stockholder is ever hardly mentioned in the boardroom as the scamming ceo's &bod's take care in the manner of their selfserving ways.there should be no pay.just dividends on shares they bought(no options).thatwould straighten a lot out.utopia- i guess. ReplyCorporate Fraud + Government Intervention = Bailout Nation [view article]
As for forward looking statements. How about1. Treasuries start dropping in price.
2. rates go up mildly.
3. Large banks fail any way.
4. We elect a socialist by our uneducated, functionally illiterate
majority
5. More poor spending from our government as more capital comes under their control, as they force higher taxes to cover their budget shortfalls.
6. More government short falls.
7. More borrowing from other countries on bad terms for us.
8. We lose much of our international leadership.
9. Getting a job teaching English in Asia becomes a great way to take care of yourself.
I know this is all speculative as heck, but I just started my interest in economics last year.
concisetrading.blogspo.../
Ryan
Reply
Corporate Fraud + Government Intervention = Bailout Nation [view article]
The manipulation, meddling and intervention in our capital markets by FED. SEC and Treasury, all performed to bail out their pals, will possibly calm the sheep in the short term, but ultimately it will just cover a festering wound that will cripple this country and very possibly the world economies.The hundreds of billions of dollars of discount window borrowings rewarded to the investment bankers since the Jan/March meltdowns has not gone to ease the liquidity crisis, it has simply gone to creating the biggest day traders on the street... what the IB's don't trade, they lend to the hedge funds they spawned over the past 10 years to trade, and now we see huge volatility that is nothing more than the IB's and hedges jacking futures and stocks in either direction in a concerted effort to make trading profits.
Mortgage rates are higher now than they were a year ago despite the Fed's rate cuts, commercial bank borrowings at the discount window are rising rapidly, and still the culprits dance!
Tick tick tick... Reply
Corporate Fraud + Government Intervention = Bailout Nation [view article]
The next wave of trouble from this will be people who can't cover the income tax on the 1099 they receive from the lender when their foreclosed house sells for less than the outstanding loan. Just wait for the 2008 Tax Season. You can't just walk away from Uncle Sam. ReplyCorporate Fraud + Government Intervention = Bailout Nation [view article]
How many times have you heard that one of our major problems is our "low savings rate"? For years now it has been close to or less than zero.Out come the "stimulus checks" and lo and behold we find that about 30% of the money wasn't spent, but was actually saved in a bank account or used to reduce some credit card debt.
The next outcry was bemoaning the fact that people were saving and actually coming to their senses!
The whole world knows that if Americans ever returned to the '60's and saved/invested 5-10% of their incomes the global economy would be down the tubes. The world depends on Americans borrowing and spending themselves and their country into bankruptcy. And they will gladly sell us the junk and loan us the money to do it with.
My question is, where will the world find the next goose to pluck? Reply
Corporate Fraud + Government Intervention = Bailout Nation [view article]
The real problem (as seen by a retired Bank of America V.P. Branch Mgr/lender) is the momen twhen the banks decided to "sell off" loans instead of "Portfolioing them" and 2) the BIGGEST mistake came when the "ALMIGHTY CREDIT SCORING SYSTEM" was enacted by ?????For those of you who may not know, the pervasive, destructive CREDIT SCORE SYSTEM doesn't require a lender to determine if you have a job, cash reserves, enough money to make payments....how absurd is that? No fancy talk here - I am just a one person nobody - BUT I KNOW that the way I was required to lend money was to determine if the individuals had job stability a good CREDIT RATING (NO SCORES) verifiable income, and at least some money on hand at the bank in case they needed it to pay their mortgage payment in case of an emergency. A good example from my own family: my (deceased) mother living on soc sec. in Florida was talked into buying a HOUSE for $0.00 down onan ARM that she could pay the first year with her fixed govt. ss check, but when the 2% increase came year #2 she folded. By the way she also was "given" a brand new Chrysler Cruiser based on her credit score for "only" 235.00/month.(She only got $900.00/month ss benefit.) I have been been quoted HIGHER INSURANCE PREMIUMS because somehow the insidious CREDIT SCORE was allowed to creep into INSURANCE AGENCIES - even though I had NEVER had a claim...but I guess if one's "SCORE" isn't in the 700's one is currently deemed a "crook" out to get the insurance company by submitting flase claims? The biggest loser of all - we, the Chinese - whoops - meant to say the American working legal citizens. Don't kid yourselves - ALL BANKS AARE GOING TO FAIL (Chase wouldn't cash my govy $600.00 from Bush even though I HAD an account there because they "didn't have the money". Belive me, the govt doesn't want you to know that our fiat currency is worthless....and if Bush gets the Chinese mad enough at us with his speech today, they will transfer all the trillions of us dollars they have been hoarding into Euros and THAT will be the END of this Country as we knew it. Reply