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

Posted by John Carney, Sep 15, 2008, 3:45pm

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.

5Recommend this! 17Comments

Tags: Black Sunday

Comments

1

Posted by guest , Sep 15, 2008 2:19PM

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

Posted by guest , Sep 15, 2008 3:52PM

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

3

Posted by guest , Sep 15, 2008 4:00PM

yeah, market looks good at the close - LEH doesn't matter.

4

Posted by guest , Sep 15, 2008 4:07PM

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

5

Posted by AJ , Sep 15, 2008 4:08PM

Wow 500 points. yay finance!

6

Posted by guest , Sep 15, 2008 4:09PM

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

Posted by guest , Sep 15, 2008 4:11PM

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

8

Posted by guest , Sep 15, 2008 4:18PM

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

Posted by guest , Sep 15, 2008 4:19PM

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

10

Posted by guest , Sep 15, 2008 4:28PM

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

11

Posted by guest , Sep 15, 2008 4:29PM

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

12

Posted by guest , Sep 15, 2008 4:30PM

#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

Posted by guest , Sep 15, 2008 4:32PM

bac CUTTING dividend... sorry

14

Posted by John Carney , Sep 15, 2008 4:33PM

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

15

Posted by guest , Sep 15, 2008 5:56PM

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

Posted by guest , Sep 15, 2008 7:44PM

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

17

Posted by guest , Sep 15, 2008 10:43PM

@14- thanks JC!

Post Your Comment