Serge Birbrair

Financials Likely in Dead Cat Bounce, But Fed's Now a Wildcard

Sorry, my bad, $330 BILLIONS only.

How many Bear Stearns those $330 BILLIONS buy even at the last month prices?

Financials Likely in Dead Cat Bounce, But Fed's Now a Wildcard

There is another financial broohahah is brewing
the collapsed Auction Rates Securities market which locked
$330,000,000,000,000 in now absolutely illiquid securities.

I guestimate that people who invested in them did not put the last cent into them and I use conservative 1/3 of their investment assets, which means -
those investors control over 1 TRILLION dollars worth of investments and unless the matter is resolved soon,
the steamy investors, me included, will move our portfolios from
UBS, Merrill, Wachovia, Banc of America and put them with institutions who didn't soil themselves with those instruments.

The one trillion dollars Exodus will be a one heck of a show to see.

Here is the sccop and the debth of the problem:

nothingcontroversial.c...

The AMBAC Bailout Plan is Really About Banks Saving Their Own AAAsses

I'm sure we'll rally the next two days, but than what? I don't see how 2-4 billions dollars infusion saves 500 billion insured assets industry.
Also, as soon problem of confidence is over, and I have no doubts that 4 billions will save us all and the Wall Street and even whales, I see Fed raising rates to curb inflation and THAN what?

A Bank Led, Bank Insurer Bailout?!

The article is brilliant and the analogy with Florida is right on the money.

Friday's Turnaround: Raid on the Shorts

I have to disagree. The story broke up 30 minutes before the closing and the story in the responsible journalism world MUST be reported as soon as it happens. I am sure some shorts are thankful for the story, the shorts who didn't open the position in the last 30 minutes just to see gap up opening on Monday.

If AMBAC declares bankruptcy instead, than I will fully agree with the author.