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Posted by guest , Sep 29, 2008 7:41PM
I'm glad the Journal picked up on it - the proximal cause of this meltdown was Paulson's stupid decision to let Lehman fail. Do people realize what a huge mess this has been to clean up? How many people have cash stuck at Lehman with little chance of getting it back? That's why Libor is nuts and the CP market is "gummed up" - because Paulson thought he was handing Goldman a little win by killing off Lehman, but little did he realize Goldman and every other firm would be crushed by his plan to take moral hazard out of the market.
If the government wants to reliquify the markets, they have to backstop short-term bank paper and make it clear that we're not at risk of losing 80% of an overnight loan we're giving Wachovia at 2.1%.
Little comments like "the institutions had 6 months to reduce their exposure to Lehman" are not instilling confidence in any banks.
Posted by guest , Sep 29, 2008 7:51PM
Listen #1, the institutions had 6 months to reduce their exposure to Lehman.
The Guy From Dellawhere
Posted by redpandot , Sep 29, 2008 7:56PM
and where would they have put it? Goldman?
Its capitalization people not liquidity at this point...
Posted by guest , Sep 29, 2008 8:32PM
#3 - banks can't raise capital so long as there is the threat that the FDIC will shut them down and wipe out all of the stock and bondholders.
Posted by guest , Sep 29, 2008 8:42PM
the ghost of Fuld will haunt our Christmases for decades......
Stanly O'Neal can haunt Kwanzaa if he wants......
Posted by guest , Sep 29, 2008 8:43PM
C- on the video.
Posted by guest , Sep 29, 2008 9:24PM
What the fuck is going on, Bess picks now to start sleeping? What the hell is the Fed doing, we going to rally tomorrow or be down 21%? Should be buying deltas or selling? Where am I supposed to turn now WSJ? Bloomberg? Cramer? Can I buy CDS on myself? What about counter party risk?
Posted by guest , Sep 29, 2008 9:30PM
#1. LOL backstop short-term paper. Socialist much?
Posted by guest , Sep 29, 2008 9:31PM
@7 umm...nothing's happening
Posted by guest , Sep 29, 2008 9:47PM
I think it's interesting that people are now reporting problems created by the Lehman bankruptcy. It's weird the way there was a plan for Bear Stearns, a plan for Fannie Mae/Freddie Mac, a plan for AIG, a plan for Washington Mutual, and whoops! Lehman fell through the cracks ...
Posted by guest , Sep 29, 2008 9:52PM
@9?
How the fuck can nothing be happening. Deal fall threw, we were down ~9% yesterday. The fed injected more liquidity than the bail out package was supposed to be.... Japan is down 5% Where the fuck is Mr. Goldman Sachs? Or should I just exercise my final trade, the PDX, .move to Somalia and become a pirate....the pirate default swap?
Posted by guest , Sep 29, 2008 10:03PM
Difference between Congress and a prostitute?
Prostitute gets more done in less time.
(And I like and respect prostitutes. Not as much as certain members of Congress, but I do).
Posted by guest , Sep 29, 2008 10:07PM
That video sucks, why are places linking it?
-HEDGEmony
Posted by guest , Sep 29, 2008 10:12PM
it would have been cooler if the dow dropped 666 points...
Posted by guest , Sep 29, 2008 10:18PM
Too long, didn't read.
Posted by guest , Sep 29, 2008 10:24PM
Why did you kill the link to .
http://tfpoi.com/2008/09/29/the-list-of-228-people-who-voted-against-the-bailout-bill-aka-the-people-who-will-lose-the-next-election/
Posted by cheesedog , Sep 29, 2008 10:29PM
I think we are going way lower. Bailout v2.0 probably wont come till Thursday at best. So now, we sit in an airpocket of mediocrity while our elected officials have a circle jerk. And by the way, v2.0 isnt going to solve the problem. If anything, it will be more compromised than 1.0, and the market will see through it. Nobody is going to sell into this dumbass program if they have to make good on any future losses. That would be locking in your downside while surrendering any upside. This thing is DOA. Get liquid, stay liquid. Gonna be a clearance sale on all risk assets.
Posted by guest , Sep 29, 2008 10:56PM
I'll tell you one thing, NYC and NY state are screwed. Did anyone else notice that every Rep from NY voted in favor of the bailout? Tell me again how this isn't a kickback to Wall St. NYC is going to lose 10,000's of high paying jobs - a lot of them forever. Say hello to the vicious cycle...
Posted by guest , Sep 29, 2008 10:56PM
Bailout 2.0 is guaranteed to pass and the he monkeys on the street will rush back into equities. Should be a big pop at the end of the week.
Long term though...this market is fucked. We are just 1 year into a 3+ year bear market.
Posted by guest , Sep 29, 2008 10:58PM
That isn't true 18. Rep Gillabrand from upstate had the courage to vote no.
Posted by guest , Sep 29, 2008 10:59PM
That isn't true 18. Rep Gillibrand from upstate had the courage to vote no.
Posted by cheesedog , Sep 29, 2008 11:04PM
And I just had the courage to take a dump. It was fibrous and floated.
Posted by guest , Sep 29, 2008 11:33PM
Rep. Gillibrand's homepage has cows on it. Cows. And she seems to love earmarks. Some people get liquid courage. Gillibrand gets bovine courage.
Posted by guest , Sep 30, 2008 12:19AM
I still can't get over this. The entire U.S. mortgage system was almost handed to the government, probably will be. Isn't this the kind of thing we used to argue about with King George of England? The state owning and controlling all of our assets? So what if we're fucked economically? I'd rather be poor and free than poor and a slave.
Best case this thing ends up Kafka-esque, worst case Stalin.
Posted by guest , Sep 30, 2008 12:48AM
@24:
Except in this case its the state owning all of our liabilities. They can keep the fucking liabilities, i've got some over due library books too, i'd like to put fines on those bad boys to the Treasury also. Pretty much the fines are more expensive than the cost of the underlying book, so really no point in returning it. But I think Bookman the library detective might be on my trail.... I so I'd like to lay of these risk assets to uncle sam.
Posted by guest , Sep 30, 2008 2:02AM
Dear financers:
Can someone please explain the concept of "on the books" vs "off the books"? What are these books everyone talks about? How can you put a mortgage on BOOKS???? The only book I can think of is the payment coupon book for my mortgage. Shheeesh!!!
Sincerely,
Grain farmer in Iowa who hates fat cats.
P.S. please answer my question soon before I have to fuck my wife. She may be my sister, but she mighty purty, ya'll...finer than frog hair, whoooo doggies
Posted by guest , Sep 30, 2008 2:07AM
Let's hear again from the commenter who was calling The
Bottom on the NASDAQ before the bailout vote, LOL!
Posted by guest , Sep 30, 2008 3:08AM
No. 1, is this: "because Paulson thought he was handing Goldman a little win by killing off Lehma" the same as ole warren doing the happy dance when AIG the competitor has effectively bitten the dust?
Posted by guest , Sep 30, 2008 6:16AM
"NYC and NY state are screwed"
And the problem with this is?