sammyg123

Lehman: Man Bites Dog Latest

It's funny that Lehman is accusing another securities firm of fraud. I have heard that it is dangerous to throw stones when you live in a glass house. I have also noticed that blame is used to cover one's own blemishes. Most US financial institutions are highly leveraged, including Lehman. Lehman's book is most like Bear Stearns, and they are in trouble, just like many other US financial firms. So, regardless of the lawsuit's merit, it is likely that this is a PR move to distract attention away from fundamental issues. Don't forget that we have a right to free speech in America. Politicians lie, business leaders lie, and so does everybody else. However, the truth is that Lehman is in the same trouble in which all derivatives laden securities firms are. There is no hiding this, in spite of the PR chaff that they are throwing off with this lawsuit business. 250 million dollars is chump change compared to losses thus far, as well as projections for loss increases. I have no position in Lehman, long or short. It's bailout time, so Lehman just might make it through this. This irks me, because I believe in creative destruction.

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.

Are These "Once In A Lifetime" Moves?

Purl Gurl thinks she is smart. She is fooled by randomness.

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.

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.

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

Apparently, us morons are right. Have a look at this, Pah:
seekingalpha.com/artic...

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

The destruction of Bear Stearns is constructive.

Bad News for Bear Shareholders Is Good News for the Markets

Creative destruction is what this market needs. The financial system is broken and needs to be unwound. It's really best for the future. All over-leveraged financial institutions that created the economic crisis must be unwound so that capitalism can take its course. Right now, any government intervention will at best just slow this process down, which makes the market more predictable and prevents all of these financial institutions from going under at the same time. I admire the Fed for at least trying to keep all financial markets from freezing. Orderly liquidation is kind of important, because that way, even though this economic crisis is as bad or worse than anything we have ever seen, at least the market isn't totally crashing. It's just a bear market so far.

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

I pray that Lehman goes under. They deserve it, and they are no better than BSC. Any firm that takes no that level of credit risk and created this economic problem for the rest of us deserves what it gets. Lehman's management won't suffer, but they will be properly shamed. They'll move on, while our dollars buy 20% less today than they did last year. Their management will make it out of this with lots of money, nice houses, and nice lives. They just don't deserve the honor of operating in the financial markets, so if their clients all run and withdraw, well, too bad for Lehman. Time for them to pass on as a footnote in financial history. We'll bury Lehman next to Pig-Bear Stearns.

It's really for the best in the end. They'll be liquidated, counterparty liabilities will be unwound. This is our way out of the credit crunch, and eventually, we can expect the Fed to fight the inflation that has been caused as a result of their moral hazard.

We'll get over Pig-Bear Stears, and we'll get over Lehman, Merrill, and the rest.