Economy Watch

[beast]

Cnbc was openly saying today that they don't see how bear sterns will be a going entity after all is said and done. Sterns say's it has plenty of equity. But, that's beside the point. Maybe they do- maybe they don't- what they have was a couple of shitty hedge funds that needed bail out. Cnbc ( i say cnbc) cause i forget the guys name, dah! )
well, cnbc says bear has nothing special to offer that other folks don't have except their name. well, the name is getting a bit tarnished in some people eyes i'm afraid.

P.s

I can say anything i want about any company or stock that i want. I hereby disclose all my holdings of less then 1 us dollar in the American market place.


I'll tell you one i know that nobody else seems to know. And, it's funny, cause it's common sense. No one has to worry CityBank , 1- it was there sub prime holdings that took a hit. There equity is guaranteed by the Saudis in mho. They got hit pretty hard in the early 90's. It was Saudi money then and it's Saudi money now that helps them out.

a page or two back i spoke about the chart guy that says it's at least a two year deal with the recession if the s&p can't hold at 1270. well, the s&p was about 1330 then i believe. Today it closed at 1,273.37.

everyone seems a little edgy out there in the real world. poor suckers never took the time to look for what it is that may be inside that storm cloud on the horizon. cow.gif

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lastly, dungeons and dragons, the Internet is a big dungeon, and we be the dragons,

personalities online, are not for the most part personalities in real life. The user beast is a viral entity. He does not exist in the real world cow.gif



The fed is taking actions solely to help wall street banks. The extra liquidity will just trickle into the streets causing the dollar to decline further, commodities to continue their climb and the average Joe will suffer by going further into debt with the easy money created and not worry so much for a little while about the price of groceries. In the long run which is becoming pretty short. The money just makes the money worth less.

is saying spritzer was set up by the folks who had there toes stepped on. But, he;'s selling it as ; a poor guy visits a prostitute, big deal. prostitution is a victimless crime anyway. [ does not anybody believe that a public servant who's job it was to prosecute the very same crimes as he was committing should maybe be held to a higher level of responsibility than the average horny guy with an extra 50 in his pocket?


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if your not a war monger you can't be president. It's that easy.

what does nbc news and jet fighter engines have in common.

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more later.


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[beast]

ut , i really did here it on cnbc first cow.gif

QUOTE
Global stock markets may have cheered the US Federal Reserve yesterday, but on Wall Street the Fed's unprecedented move to pump $280 billion (£140 billion) into global markets was seen as a sure sign that at least one financial institution was struggling to survive.

The name on most people's lips was Bear Stearns. Although the Fed billed the co-ordinated rescue as a way of improving liquidity across financial markets, economists and analysts said that the decision appeared to be driven by an urgent need to stave off the collapse of an American bank.

“The only reason the Fed would do this is if they knew one or more of their primary dealers actually wasn't flush with cash and needed funds in a hurry,” Simon Maughan, an analyst with MF Global in London, said.

Mr Maughan said that the most likely victim was Bear Stearns, the first bank to run into trouble in the sub-prime crisis and the one that, among all wholesale and investment banks, is most reliant upon the use of mortgage securities for raising funds in the money markets.




gee, all these wall street investment banks with rumors. probably won't be long before regional banks start sharing in the rumors. Then, You KNow!

It's a KRMAER on the banks someplace rolleyes.gif

[beast]

Liquidity eroded in one day ---------ppppppppppppffftt ya

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Alan Schwartz

Bear Stearns said Friday that J.P. Morgan Chase had agreed to provide credit facilities for up to 28 days to help it deal with liquidity problems brought on by rumors of a cash crunch. The Federal Reserve will also have a hand in stabilizing Bear, providing J.P. Morgan with “back-to-back, non-recourse” financing for the facilities through its discount window, J.P. Morgan said in a news release.

As its stock has slid this week, Bear Stearns has sought to dispel speculation about a potential liquidity crisis. But two days after stating in an interview on CNBC that the bank’s liquidity position was solid, Bear Stearns’ chief executive, Alan D. Schwartz, said in a statement Friday that the situation “had significantly deteriorated” in the past 24 hours.

Investors hammered Bear’s stock price. At 10:30 on Friday it was down $22.50 or 39 percent, at $34.50 a share.

“We took this important step to restore confidence in us in the marketplace, strengthen our liquidity and allow us to continue normal operations,” Mr. Schwartz said in the statement.

The sudden change in Bear’s outlook seemed to underscore how rumors, founded or not, can, in the currenly nervous environment, quickly become reality on Wall Street. If counterparties decide not to do business with a firm, it can quickly find itself starved of the working capital it needs to run its business.

On Thursday, Bear’s stock hit a five-year low amid concerns that other Wall Street firms were hesitating to take the opposing side on trades with Bear Stearns, which has been one of the hardest hit by the upheaval in the mortgage markets.

Bear is also a creditor of Carlyle Capital, a Dutch-listed fund that has been on the edge of collapsing because banks were demanding additional collateral.

Now, J.P. Morgan is stepping in with a temporary secured loan facility and is in discussions about “securing permanent financing or other alternatives for the company,” Bear said Friday.

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[beast]

oldmanmike     
Posted: Mar 14 2008, 01:13 PM
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Bear Stearns is done. They had an electronic bank run yesterday afternoon and evening. They stopped the withdrawls. They can't borrow TAF, they can't borrow at the Discount Window, their collateral isn't good enough. JP Morgan put up the collateral at the DW for the Fed loan to BS. BS will probably merge with JPM.

If either BS defaults on the loan, or JPM's collateral goes bad, this time the FED is out the money. JPM's collateral wasn't in much better shape than BS.



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A government which robs Peter to pay Paul can always depend on the support of Paul.

[beast]

asia is still a couple of hours away i think.

that's what they were shooting for the article i read said.


it' a good thing cause now they won't have a second run on themselves.

(( just saw-- the fed and other agencies have already approved the deal,,

wow

fast ha?

company board also approved the deal//


((((((this must really be disaster avoidence)))))))))))))


did you see the treasury secretary paulson on tv today. seemed like a nervous wreck.


fed is going to pump in 30 billion funding to this sale.

fffiioooffff


the dollar is going to take a beaten this week if i understand any of this.



wow wow


fed just lowered interest rates by 25 basis points on a sunday night.


are we toast?