sammyg123

Crises Averted, Not Crises Solved

I agree. However, to the Fed's credit, they influenced market psychology positively. It is best to get through the crisis with faith that it will end. Kudos to the Fed. Now, as for the next bout of bad news....

The Coming Crash of 2008: A Result of Overleveraging

Thomas Barta writes as if he is on Obama's payroll. He also writes as if our global competitive edge will be magically restored if we withdraw from Iraq. Chaos in Iraq sends oil and gold through the roof, and withdrawal at this point in time would send oil well past $150, given that terrorism undermines oil security. This in turn will mean inflation in the United States, given our dependency on petroleum products in manufacturing and transporting virtually everything we make. Obama's pre-mature withdrawal strategy is an economic disaster to pile on top of the problems we already have. Further, he is a demagogue, and if economic horrors is his idea of "change," then I'd much prefer the status quo. Hegemons thrive with the status quo, so I guess what he is saying is that we need to no longer be the most powerful country in the world, because that will be good for the economy?

Obama's message is disconnected from geopolitical realities. He will destroy our country, IMHO.

Barta, this is a financial website. Silly socialists, finance is for capitalists.

Explaining Bear Stearns' Current $7 Price

I think it is also worth considering that BSC shareholders would like a better price than 2 bucks. I think of the JPM deal as a put on BSC. BSC can move higher, and should, especially if another buyer emerges. Perhaps it doesn't seem like the vultures are circling right now, but those vultures might also be buying the stock as well. A savvy liquidator might get shareholders and bondholders what they want. JPM just put in a floor price, as liquidator of last resort. Time will tell if another suitor comes around. Jimmy Cayne is crossing his fingers, assuredly, while playing bridge.

It Wasn't a 'Bailout'

Excellent. Get your tin hats out everyone. It's not an economic crisis....it's a conspiracy. Insert spooky music here.

Fed Will Do What It Takes To Push Bear Deal Through

BSC shareholders can and should sue for a dear that is more fair to equity holders. In the end, BSC needs to go away though.

Jim Rogers on the Bear Stearns Bailout

Bernanke is slow on the trigger. I doubt he'll be seen as the greatest central banker. Let's just hope for now that he's the right man for the job, and let history be as is...

Did JP Morgan Overpay For Bear Stearns?

What purpose would it have served to "save" BSC anyway. Their liquidation is a good thing, and offers the chance that the derivatives/credit deadlock can be loosened. As money is raised to unwind the derivatives mess, things will start to get better. Banks will trust each other enough to lend. Perhaps more firms need to get liquidated to help unwind the derivatives mess?

I'm not happy about companies going under. I am less happy about what these companies did to our economy, and how that has forced the fed to cut interest rates and devalue our currency. I'd like what little currency I have to be worth something. I worked for it, as I am sure everyone else has worked for theirs. So, if we have to liquidate some poorly run companies that were parties to the problem, so be it, if that means somewhere down the road, the USD will trade at parity with the Euro.

Two Dollars per Share, or an "Orderly Liquidation"?

Plenty of bubbles to burst out there, that is for sure. However, now's our time. Bear markets last for years, and this one very well could as well. From 2000-2002, the Nasdaq lost 40%. The problems now are more serious than the dotcom era. We have more downside to go.

Two Dollars per Share, or an "Orderly Liquidation"?

Bernanke & Co. are smart guys, but there are many forces in play that are outside of their control. Looking to the government for answers here, as if they can take public funds and just prop up the market, is not realistic. There is more bad news in the market place coming. 5 years from now, though, Soprano, you'll look like a genius.

Two Dollars per Share, or an "Orderly Liquidation"?

If you must forecast, then forecast often. Eventually, Soprano, you will be right.

Bear Stearns Buyout: Don't Panic - Initial Reactions Look Overdone

If you have cash in large, heavily leveraged brokerage firms, do yourself a favor and move it out - especially if you have money in Lehman. They are over-leveraged and no matter what they say about how strong their balance sheet is, it's not. I wonder if they will tell the truth about their exposure to Carlyle Group, which fell right before Bear Stearns failed?

Two Dollars per Share, or an "Orderly Liquidation"?

And, I guess Joseph Lewis, the billionaire who bought 6% of BSC needed the tax write off.

Two Dollars per Share, or an "Orderly Liquidation"?

Lehman is going to scramble like mad to not be bought out for $1.99, the same cost, as it turns out, as the gland slam breakfast at Denny's. I'm not sure that the JPM's breakfast, BSC, is going to be digested all that well, but all's well that end's well. It's not a bad thing that these financial institutions are going to go under. It just means that the derivatives mess will be unwound. Counterparty obligations will be paid. Trust will be restored, somewhere down the road.

Bear Stearns Sold for an Embarrassing $236m

So....counterparty risks unwind after the derivatives mess is cleaned up. gotcha. That's what I said.

Morgan's the Big Winner; Lehman in Trouble As Well?

I quote: "As I wrote this week, the global liquidity crisis was brought on by bankers and the public ought to protect themselves by pulling their capital out of the market, which would send the system into crisis, forcing these bankers to sort out their various conflicts of interest and return us a legitimate capital market that is not controlled by debt market dependent financial services companies." - which is from the article that I put for you, Pah, above.