[roccman]

A run on these bad boyz would bring the house down...

Link

All rumor ...of course

[seldom_seen]

All we need now is a government official to be taken out for "having sex with prostitutes." OMG!

Then maybe the deal will go down this weekend where Goldman Sachs buys Lehman for .05 cents a share on Sunday afternoon and the Fed backs up 80 billion dollars of their debt.

I love the free market.

[roccman]

All we need now is a government official to be taken out for "having sex with prostitutes." OMG!
Then maybe the deal will go down this weekend where Goldman Sachs buys Lehman for .05 cents a share on Sunday afternoon and the Fed backs up 80 billion dollars of their debt.
I love the free market.

I don't think the fed has the sheet to back LEH.

Congress will sure as hell NOT authorize another JPM/BSC bailout in an election year.

[Dreamtwister]

You know, when Bear Stearns went belly-up back in March, I asked on my blog "Who's next?" My top 3 picks were Lehman Brothers, Washington Mutual and MF Global.

With my track record lately, half of me wants to unwind some of my PM position to cash in on these failures. The other half of me wants to run out and take physical posession while I can.

Decisions, decisions...

[Iaato]

I don't think the fed has the sheet to back LEH.
Congress will sure as hell NOT authorize another JPM/BSC bailout in an election year.

I'll take you up on that one, Rocc. I think they can and will continue to authorize M&A bailouts with JPM the bagholder. Betcha?

[roccman]

I don't think the fed has the sheet to back LEH.
Congress will sure as hell NOT authorize another JPM/BSC bailout in an election year.

I'll take you up on that one, Rocc. I think they can and will continue to authorize M&A bailouts with JPM the bagholder. Betcha?

You're on...

Keep in mind the JPM/BSC deal is currently wavering...

So how much (in silver) did you want to give me?

[Iaato]

I'll take you up on that one, Rocc. I think they can and will continue to authorize M&A bailouts with JPM the bagholder. Betcha?

You're on...
Keep in mind the JPM/BSC deal is currently wavering...
So how much (in silver) did you want to give me?

How about one silver eagle? Or a pre-1964 50 cent piece or dollar? I think I've got any one of those, if you do. We'll have to define bailout, though. The way Ben keeps coming up with new, creative financing terms, a bailout might end up looking like nothing we've ever seen before . . . . At least one bailout, to merge with JPM again. It doesn't have to go through (too many variables there with too long of a timeline), it just has to be bailed out in the short term. These jokers will do anything to keep the derivative chain from cascading.

[Peleg]

The house of cards falls; aces and eights, kings and queens and fools.

[EnergyUnlimited]

http://news.bbc.co.uk/2/hi/business/7434776.stm

It begins to like Bear Stern bis.

[municipal]

I don't think the fed has the sheet to back LEH.
Congress will sure as hell NOT authorize another JPM/BSC bailout in an election year.

I'll take you up on that one, Rocc. I think they can and will continue to authorize M&A bailouts with JPM the bagholder. Betcha?

Over 1.5 trillion has been given fre since november, to the banks. It is easy to print.

[hope_full]

over 1.5 trillion has been given fre since november, to the banks. It is easy to print.

I'm a neophyte here, so please be kind and patient with me.

Are you saying that the federal government has printed $1.5 trillion since November? Doesn't printing money lead to hyper-inflation (such as Germany, post WWI)? And how do you know that they've printed $1.5 trillion?

And lastly, isn't that an efficient way to bring down a government - to ruin their economy through introducing massive amounts of printed currency into their economy?

HF

[pup55]

Are you saying that the federal government has printed $1.5 trillion since November? Doesn't printing money lead to hyper-inflation (such as Germany, post WWI)? And how do you know that they've printed $1.5 trillion?
And lastly, isn't that an efficient way to bring down a government - to ruin their economy through introducing massive amounts of printed currency into their economy?

You are hereby promoted from "tenderfoot" to "one step higher than tenderfoot" whatever that is.

They didn't really print the $1.5T, they just sort of "wished it into existence" and gave it to JP Morgan to keep the Bear Stearns deal and many others from blowing up.

And, yes, it is a pretty good way to screw up a government. However, Bernanke, who apparently is a scholar and expert on the first Great Depression does not want to repeat the so-called mistakes of the past. He thinks he is helping us out, by getting the system to limp along for a few months more.

What he doesn't know is that he is creating a whole new set of mistakes. Scholars years from now will look back on this time and just laugh at what kind of an idiot this guy was.

Perhaps one of these scholars will be named Chairman of the Fed, if such an institution still exists in a generation, and make a whole new set of mistakes.

[seahorse]

Pup,
In the words of Darth Vader "I find your lack of faith disturbing."

Yes, soon, North American may become synonymous with South America for a myriad of reasons, least of which will not be graft, corruption, run away inflation (prices, however one wants to define it).

[roccman]

At least one bailout, to merge with JPM again. It doesn't have to go through (too many variables there with too long of a timeline), it just has to be bailed out in the short term. These jokers will do anything to keep the derivative chain from cascading.

I am in for a 1921 Morgan with these terms.

Ok?

[Denny]

The ultimate irony is that Helicopter Ben announced just yesterday that the Fed wil be pursuing a much stronger U.S. dollar.

[catbox]

From Bloomberg this morning:

http://www.bloomberg.com/apps/news?pid= ... refer=home

[roccman]

From Bloomberg this morning:
http://www.bloomberg.com/apps/news?pid= ... refer=home

Roccman in the five ring again.

[canis_lupus]

Help a brother out here rocc -
1. Lehman has a run on it
2. the Fed can't / won't bail it out.
3. it goes under and is folded into a stronger bank for pennies on the dollar
4. investors lose their capital. depositors lose their deposits over the FDIC - guaranteed amount...?
5. ?
I guess I don't know enough about how a major bank failure affects the economy. Is it confidence or hard dollars?

Can somebody give me a two sentence "set me in the right direction" answer?
Much obliged,
Lupus

[roccman]

Help a brother out here rocc -
1. Lehman has a run on it
2. the Fed can't / won't bail it out.
3. it goes under and is folded into a stronger bank for pennies on the dollar
4. investors lose their capital. depositors lose their deposits over the FDIC - guaranteed amount...?
5. ?
I guess I don't know enough about how a major bank failure affects the economy. Is it confidence or hard dollars?
Can somebody give me a two sentence "set me in the right direction" answer?
Much obliged,
Lupus

I'll give it to you in one sentence. The collapse of the US and subsequent global economy.

[Iaato]

1. Lehman has a run on it
2. the Fed can't / won't bail it out.
3. it goes under and is folded into a stronger bank for pennies on the dollar
4. investors lose their capital. depositors lose their deposits over the FDIC - guaranteed amount...?
5. ?

If LEH goes bankrupt, all of their worthless derivatives have to be marked to market. Which would be fine, except that then that causes a chain reaction where the other $600T in derivatives worldwide would have a market price, which is probably $0 or close to it. As Rocc says, #5 then becomes global economic collapse because that $600T is many times the value of all the other financial assets/world GDP/etc.

Rocc, I don't own any antiques, so I can't match the Morgan. PM me, we'll figure something out. It's a good bet.