• 15 Sep 2008 at 3:45 PM

Wall Street Is Broken: A Q&A On Black Sunday

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Our friends at FishbowlNY asked us some questions about Black Monday. We explained that this really is as bad as it seems, it could get worse and why there’s no place to hide. Also: why the government treated Fannie and Freddie so differently from Lehman Brothers.

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    Comments (18)

    1. 1
      Posted by guest | September 15, 2008 at 2:19 PM

      Cause LEH doesn’t matter in the grand scheme of things. It was not too big to fail (as we have proven today).
      More interesting, what is o/u on BAC cutting dividend? They already at > 100% payout on LTM basis and just created a whole heck of a lot more shares.

    2. 2
      Posted by guest | September 15, 2008 at 3:52 PM

      Good to see Sykes is pumping himself (pun intended) yet again.

    3. 3
      Posted by guest | September 15, 2008 at 4:00 PM

      yeah, market looks good at the close – LEH doesn’t matter.

    4. 4
      Posted by guest | September 15, 2008 at 4:07 PM

      yup, markets look juuuuuuusssstt fine. almost as if this whole “lehman” thing never even happened!

    5. 5
      Posted by AJ | September 15, 2008 at 4:08 PM

      Wow 500 points. yay finance!

    6. 6
      Posted by guest | September 15, 2008 at 4:09 PM

      I’m shocked it took this long. We’ve been running in a massive debacle since June 07 and almost blew this thing up a few times. Oddly we have yet to hit a single trading halt on the exchanges…why? I’m certainly worried. The credit markets seem worried. Yet the equity guys have total Bill Miller-esque composure as they march to their doom.

    7. 7
      Posted by guest | September 15, 2008 at 4:11 PM

      Market looks great (especially for barrel and suspender manufacturers). -C

    8. 8
      Posted by guest | September 15, 2008 at 4:18 PM

      Until the Consumer starts spending again…..which is no time soon we will watch the past 5 – 7 years of stock market gains be erased. USA = Flaccid Shamwow Mayo

    9. 9
      Posted by guest | September 15, 2008 at 4:19 PM

      why is merill stock at 17 when it is going to be bought out for 29/share???

    10. 10
      Posted by guest | September 15, 2008 at 4:28 PM

      bofa, going to get dividend, strain on value.. ruh roh!

    11. 11
      Posted by guest | September 15, 2008 at 4:29 PM

      because mer is being bought with .8595 bac shares, not cash. other factors, son.

    12. 12
      Posted by guest | September 15, 2008 at 4:30 PM

      #9 first of all its all stock, $29 instantly became much less when BAC opened materially lower. also risk deal dosent get done is high

    13. 13
      Posted by guest | September 15, 2008 at 4:32 PM

      bac CUTTING dividend… sorry

    14. 14
      Posted by John Carney | September 15, 2008 at 4:33 PM

      @9: I answered this question here: http://dealbreaker.com/2008/09/price-of-merrill-declines-as-b.php

    15. 15
      Posted by guest | September 15, 2008 at 5:56 PM

      Probably not gonna hit a trading curb unless somebody puts LSD in the water at the Exchange, because all the brokers know where the curbs are and will dance around ‘em.
      OTOH, if bad does go to oh-fuck-we’re-fucked, it’ll go from some tipping point near a curb to way over the curb level as people try to dive over the goal line before the Fridge lands on them.

    16. 16
      Posted by guest | September 15, 2008 at 7:44 PM

      We hit curbs and getting hit by the fridge may seem like a kind ending!

    17. 17
      Posted by guest | September 15, 2008 at 10:43 PM

      @14- thanks JC!

    18. 18
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