Lehman Brothers Holdings Inc. (LEH)

All Comments on LEH

  • commenter
    User 118015
    Sep 16 02:13 PM
    Is It a Time for Panic or Profit? [view article]
    If the average guy loses his job, HIS HOME, his investments and his pension because of these financial failures, there will be few happy campers out in the real world. Depression style bread lines and chaos in the streets is what the country would be facing!!! Reply
  • commenter
    kotika98
    Sep 16 02:11 PM
    Investment Banks, R.I.P. [view article]
    Have you guys all forgotten that Citadel is the new investment bank? It is doing fine, thank you...

    Another thing people forget is that sure, there were voices saying that investment banks and banks should stick to facilitating, and not turn themselves into a hedge fund risking their own capital. But the specific entities mentioned tended to be Deutche Bank and Goldman, not all these other guys who are now proven to have been clueless.     Reply
  • commenter
    JasonC
    Sep 16 02:11 PM
    Is It a Time for Panic or Profit? [view article]
    Baron Rothschild (one of them anyway) was asked how he made his fortune in the 19th century. He said "when the streets of Paris are running with blood, I buy".

    Panic is the only time to buy...     Reply
  • commenter
    User 118015
    Sep 16 02:09 PM
    Is It a Time for Panic or Profit? [view article]
    These markets are going to have an effect on the real world...people that depend on financial institutions for financing homes, credit cards as well a savings and investment. Business has the same needs and their options are also gradually deteriorating with less lendable funds for everyday operations. If the average guy loses his job, his investments and his pension because of these financial failures, there will be few happy campers out in the real world. Depression style bread lines and chaos in the streets are what the country would be facing. We need Fiscal and Monitary policy to help the average guy survive at this stage including a Public Works Program for those that cannot find work. Instead of trying to save the world for Democracy lets try to save ourselves with cheap energy, cheap food and plenty of jobs as well as stable investment opportunities. Were in deep s unless the country starts moving before its too late...Marvin the Maven Reply
  • commenter
    JasonC
    Sep 16 02:09 PM
    Credit Default Swaps: The Show Isn't Over [view article]
    More worthless nonsense from an ignorant and reckless bombthrower. Reply
  • commenter
    AlexS
    Sep 16 01:55 PM
    My Website
    John Hussman: Fannie / Freddie Set the Stage for Lehman [view article]
    Why would you blame this on tax cuts? There have been other tax cuts before but I don't recall a subprime mortgage disaster. I blame it on the Community Reinvestment Act (CRA) of 1977 (Jimmy Carter and a Democratic Congress) followed by the 1995 action of Bill Clinton et. al. in "strengthening&qu... the CRA and allowing institutions to sell derivatives, to hide the sales of subprimes in a basket of otherwise investment grade obligations. Part of the CRA was giving money to "community activist" groups to increase pressure on banks to make subprime loans, the same activity that gave Obama his start in community activist functions. Then of course this year the Congress in its housing bill mandated that a portion of all Fannie and Freddie mortgage loans include a percentage for those same activist groups. Nothing like a wheel to bring us back to where we were. Reply
  • commenter
    Murali
    Thoota
    Sep 16 01:55 PM
    Credit Default Swaps: The Show Isn't Over [view article]
    Where can we track the CDS rates for financial/other companies. I see the problem spreading to non-financial companies - Like CEG. Reply
  • commenter
    BS Detector
    Sep 16 01:50 PM
    Credit Default Swaps: The Show Isn't Over [view article]
    "'Derivatives' are complex bank creations that are very hard to understand, but the basic idea is that you can insure an investment you want to go up by betting it will go down. The simplest form of derivative is a short sale: You can place a bet that some asset you own will go down, so that you are covered whichever way the asset moves."

    Observations:

    1. A derivative is simply an investment derived from an underlying security. Some are complicated, but some are very simple.

    2. Not sure how the industry sees this, but I wouldn't call a short sale a derivative.

    3. Selling short an asset one holds rather than just selling the asset is almost never wise. All you are doing is paying additional commissions and tying up capital which could be productively used elsewhere. There are rare instances where this can make sense, such as when holding the stock for a certain period means a lower tax rate on capital gains. But generally, just sell the stock.

    At least that's the way I see it.     Reply
  • commenter
    Big Al45
    Sep 16 01:49 PM
    History Suggests the Financial Bottom May Be Near [view article]
    Think I'd wait until AIG is resolved before calling a bottom. If they go bankrupt, Dow 10,000 may seem like a pipe dream

    Reply
  • commenter
    LarryH
    Sep 16 01:44 PM
    Is It a Time for Panic or Profit? [view article]
    Thanks for the post. I wish profit were the only alternative to panic. There is also loss. It just seems that nothing is working right now. My fixed income investments are under water too, but I don't have to sell, and I will hold for at least another year to see if things get any better. It sure takes guts right now to put more money into equities or fixed income, but now is when they appear attractive. Of course they could get even cheaper! It may take a few years to see anything resembling normal in the markets again. Reply
  • commenter
    John Egan
    Sep 16 01:42 PM
    Investment Banks, R.I.P. [view article]
    Re: Squashnut's comment.... At least Paulsen didn't allow the CEOs of FRE and FNM to walk away with their golden parachutes... Between the two, they had to give up $20 Million ... (Course... we will still have the potential for a suit.. ) .. But at least it seems he understands that the public is a little tired of screw-up CEOs walking away with big paychecks for a little R&R and golf while everyone else is cleaning out their desks and trying to get their last prescription for valium filled before their medical plan terminates.

    jegan ;-)     Reply
  • commenter
    David Lentz
    Sep 16 01:41 PM
    Options Trader: Tough-Decisions Tuesday [view article]
    There is an even cheaper way to stop the madness.

    Simply require that all holders of ARMs convert them to fixed-rate mortgages, at the going rates that the GSEs offer.

    To prevent the lenders from getting a haircut, and taking all the pain, merely extend the terms of the new mortgages such that the lenders will ultimately receive all the interest that they would have if the ARMs had continued, or some reasonable fraction of that money.

    The net impact of this is that the borrowers that are in over their heads get effectively converted to renters, with mortgages of over a hundred years on houses whose value is below the amount on the mortgage.

    So they can't sell the homes until housing market valuations recover, but they are also not forced out of their homes, dumping the repo'd properties onto a scrap heap that is crushing the industry.

    In the end, these folks are probably toast anyhow, but at least it does not happen in just a year or three, but instead is spread out over decades, with unlucky individuals facing up to their problems as they are either forced to move or suffer economic calamities (lose their jobs, divorce, etc) that place them in the position of having to deal with their under-water mortgage.

    This would immediately stop the inventory build-up in unsold housing, would allow millions of homeowners to remain in their homes (albeit saddled with a debt burden they will, in all likelihood, spend the rest of their lives paying off), and allow things to stabilize in the ravaged housing industry.

    Then we can have a measure of sanity (not too much, as that wouldn't be normal) in the financial industry, and begin to lay the groundwork for a recovery. The powers that be would have the time necessary to implement a sane regulatory framework -- instead of some emergency claptrap that will be riddled with a whole new set of problems, which is where we are heading now.

    It's really easy to bring all this to a responsible conclusion. Instead our collective head is on fire, and we are attempting to put it out with a hammer.     Reply
  • commenter
    iNVestorUnre
    st
    Sep 16 01:36 PM
    Wiping Your Assets Clean: Aftermath of a 500 Point Crush [view article]
    This is a very interesting article. Why isn't this featured more prominently when it seems to address exactly what's going on in the market right now when it comes to the debacle of this AIG and the resulting Federal reserve meeting in the next few hours or so?

    I've been reading all these other articles on AIG on the front page and very few dare to talk about how to play it or how it effects the rest of the market.

    That is an very interesting way to play AIG with maximum volatility up or down. I'll be interested to see how it works out.
     Reply
  • commenter
    squashnut
    Sep 16 01:25 PM
    Investment Banks, R.I.P. [view article]
    It's a great scheme. Start a bank, borrow huge sums. Pay yourself salary and bonus. Declare bankruptcy. Rinse. Repeat. Reply
  • commenter
    rcraig
    Sep 16 01:22 PM
    AIG Must Not Fail! - Cramer's Stop Trading! (9/15/08) [view article]
    Cramer is a clown, a performer, an actor, a braggart who can't remember when he says a misguided word of optimism or guidance.
    The entire premise is he and GE take the stand that he is nothing less than one long infomercial. And according to the laws an advertisement is an advertisement and nothing more. It is not an offer, it is not a guarantee, it is no a solicitation.

    For the other issue of discussion, why does the governmet allow a "Mom and Pop" store fail? When they fail the governemt autions off all the assets to pay all debts, but, when a large corporation like MER, or AIG falter under the same misguidance learned and demonstrated by Jim Cramer the governemt comes to the rescue.
    In my humble opinion nothing real bad would happen if any of the big boys collasped. You would have a bunch of smaler scavengers scraping up the goods and going about their ways. The risk of allowing a government insured company like Freddy Mac and Fanny Mae go bust is it would mean the goverment guarentee is worthless. While if the big boyss go bust and the CEOs are held accountable for their actions it sends a clear message throughout the indutry that enough is enough.
    Let's hope the hocky mom gets into office. I can wait another two years when McCain drops out of sight and leaves her the reins.
    The pig sty has to be cleaned out every now and then to make sure the rest of the farm animals don't catch hoof-and-mouth disease.
    I just wish someone in law enforcement would exercise their oath to defend the counstitution against all enemys foriegn and domestic and make a few politicians and CEOs do their public PERT Walk.     Reply
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