Wednesday, Sep 17, 2008
More to go?
Bloomberg: Morgan Stanley, Goldman Plummet After AIG Takeover
'The end of investment banking' was the phrase used on Channel 4 news.
Posted by shipbuilder @ 07:29 PM (573 views) Add Comment
5 Comments
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1. planning4acrash said...
These are the last two surviving big independent investment banks on Wall Street, so far as I understand. Wow.
2. mountain goat said...
``From what Goldman said on their conference call, they said they're going to go it alone,'' Smith said. ``But when you're leveraged it's not up to you, it's up to your trading counterparties.''
exactly!
3. paul said...
Let the short selling commence!
4. Yoss said...
There was a shameless gold ramp! So your saying the only safe place to put money is in gold. GULP. I expected bad news just not bad news that fast.
5. mountain goat said...
Bigpicture I got called yesterday from the producers of The Daily Show, who asked for an explanation of this understandable to the "lay person."
Here is what I said to them:
• Lehman Brothers was like the little kid pulling the tail of a dog. You know the kid is going to get hurt eventually, and so no one is surprised when the dog turns around and bites the kid. But the kid only hurts himself, so no one really cares that much.
• Bear Stearns is the little pyro -- the kid who was always playing with matches. He could harm not only himself, but burns his own house down, and indeed, he could have burnt down the entire neighborhood. The Fed stepped in not to protect him, but the rest of the block.
• AIG is the kid who accidentally stumbled into a bio-tech warfare lab . . . finds all these unlabeled vials, and heads out to the playground with a handful of them jammed into his pockets.