Well, now that someone actually put their money where their leaks were and ponied up for something that Lehman owns, other troubled firms look to be buoyed by the lift in Lehman confidence.
Lehman shares soared 9.00% on the news to $0.2276 per share and the rising tide of confidence that the assets in the opaque portfolios of financial firms are more of a Polonium-210-slow-and-painful kind of toxicity instead of the quick-and-violent lethality of sodium cyanide rallied firms like Washington Mutual (WM) up a whopping 19.50% to $2.39, its highest point in the preceding 10 minutes.
The news also boosted the second derivative of AIG's stock price. The rate of the rate of deterioration in AIG's share price reversed quickly, jumping +5.50%, up from a brutal -24.33% yesterday. AIG indicated it does not comment on the second derivative of their stock price during market hours, pursuant to that firm's investor relations policy.
Posted by guest , Sep 16, 2008 11:22AM
"AIG"? Y'all are talking about a bank? An "AIG" is where a chicken comes from here in Texas.
Posted by guest , Sep 16, 2008 11:23AM
Nice usage of "second derivative" in its proper context. Looks like someone paid attention in calculus.
Posted by guest , Sep 16, 2008 11:26AM
AIG = Another Investment Gamble.
Posted by guest , Sep 16, 2008 11:27AM
Legendary post.
Posted by guest , Sep 16, 2008 11:29AM
Note to you financial types: in a bankruptcy (whether liquidation or reorganization) shareholders get nothing!! Keep buying those LEH shares, people.
Posted by guest , Sep 16, 2008 11:32AM
@5 - didnt pay full attention to enron, did you?
Posted by guest , Sep 16, 2008 11:32AM
you know shit is about to get real bad when they use the 8 person window on CNBC
Posted by guest , Sep 16, 2008 11:33AM
@5 -- since when is that, numbnuts? you clearly know as much about bk as you do about "financial types".
Posted by guest , Sep 16, 2008 11:33AM
Same hypothetical question, different post. If LEH were to hypothetically owe me $ on energy trades, does the deal with Barclays mean anything?
Posted by guest , Sep 16, 2008 11:34AM
We're with AIG, so I'm just thinking about butterflies.
Posted by AJ , Sep 16, 2008 11:34AM
@5 Not necessarily true...
Posted by guest , Sep 16, 2008 11:34AM
Last paragraph is one of your best ever.
AIG is a call on moral hazard.
And it is inefficiently priced <$5.
Posted by guest , Sep 16, 2008 11:35AM
Actually, in a bankruptcy the shareholders get whatever is left over after paying off creditors.
Posted by guest , Sep 16, 2008 11:36AM
depends what the f it means to "hypothetically owe you $ on energy trades". that could mean a million things, so go talk to your lawyer.
Posted by guest , Sep 16, 2008 11:41AM
MAYO
Posted by diablo , Sep 16, 2008 11:42AM
EP, cleverly funny.
Posted by guest , Sep 16, 2008 11:43AM
sweet Polonium 210 reference
Posted by guest , Sep 16, 2008 11:58AM
@ 15 you said it best. No pun intended.
Posted by Anal_yst , Sep 16, 2008 12:13PM
EP a lil free time on your hands today? Implied vol, 2nd derivatives?
Please.Don't.Stop.
My otherwise completely unengaged brain needs the stimulation.
Posted by guest , Sep 16, 2008 12:13PM
"The news also boosted the second derivative of AIG's stock price. The rate of the rate of deterioration in AIG's share price reversed quickly"
you really measured the change of the velocity of the stock price (i.e. the change of the price changes)?
Posted by guest , Sep 16, 2008 12:15PM
I wonder if Bess knows what implied vol is....or a derivative for that matter
Posted by guest , Sep 16, 2008 12:19PM
@21...or ever said she did?
Posted by guest , Sep 16, 2008 12:22PM
21 Even if she doesn't, it would take only about 90 seconds to explain. So stop thinking that that such knowledge is a sign of a superior individual.
Posted by guest , Sep 16, 2008 12:25PM
you must be very smart 21.
Posted by guest , Sep 16, 2008 12:46PM
over in the bond market we call that convexity.... i think
Posted by guest , Sep 16, 2008 1:07PM
1. that 2nd derivative line was awesome.
2. Bess may not know what a 2nd derivative is, but she makes up for it with her encyclopedic knowledge of WWII porn.
Posted by guest , Sep 16, 2008 1:08PM
@25 you lost me. where was she talking about derivates with respect to interest rates?
Posted by guest , Sep 16, 2008 1:19PM
I'm flattered that you read my blog, ep.
Posted by guest , Sep 16, 2008 1:19PM
I'm flattered that you read my blog, ep.
Posted by guest , Sep 16, 2008 1:20PM
well, i'm not THAT flattered. you can ignore either 28 or 29, but not both.
Posted by guest , Sep 16, 2008 1:22PM
@"I'm flattered that you read my blog, ep."
what are you talking about?
Posted by guest , Sep 16, 2008 1:29PM
@ 31 fuggeddaboudit.
actually, ep, YOU should be flattered that you read my blog.
you're in very good company.
Posted by ep , Sep 16, 2008 1:30PM
I would ask "what blog" but that would be me walking into your free publicity gambit.
Posted by guest , Sep 16, 2008 1:36PM
@ 33 given that bit of shrewd deductive reasoning, I understand why you have to reach out for inspiration.
Posted by beentheredonethat , Sep 16, 2008 2:01PM
Lehman is going in front of Judge Peck this afternoon to get approval from the bankruptcy court for "certain asset sales".
Posted by guest , Sep 17, 2008 12:22AM
I feel sorry for Lehman Employees, not only their retirement saving in Lehman stocks have been wiped out because Barclays used tricks to get the best deal out of Lehman's misfortune (choosing "walk away" before the bankruptcy and then buy best of everything at firesell), now they have to be integrated into Barclays like orphans. Lehman employees now have to work many more years FOR FREE to Barclays to recover their original retirement savings when Barclays could've just bought the firm before the bankruptcy to avoid their retirement savings being wiped out. Poor Lehman employees, you have to work like a dog to serve Barclays and be grateful to them for "keeping your job " (or shall I say screwing you over the sneaky way)!!
Posted by guest , Sep 24, 2008 6:38AM
I just would like to know how much money the ceo's and the cfo's of these companies put in their pockets over the years. I hope they never get another job again they belong in jail.... Period
Posted by guest , Sep 24, 2008 6:38AM
I just would like to know how much money the ceo's and the cfo's of these companies put in their pockets over the years. I hope they never get another job again they belong in jail.... Period
Posted by guest , Sep 24, 2008 8:05AM
@36 & @37 - Just shut up already and stand quietly on the unemployment line. You'll see all your old friends there, so, consider it social time.
Now, shoo...off the internet and go clean someone's apartment. Or go back home to Omaha and tell the folks how slippery NYers are.