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Bear Sterns - Stripped Bear

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From the article:

Ironically, the intervention came a day after Standard & Poor’s, a rating agency, said that the worst of banks’ write-downs related to subprime mortgages—Bear’s biggest weakness—may soon be over. But if the extraordinary events of the past day demonstrate anything, it is that investment banks are black boxes, and what really matters is not what sits in them but what their counterparties fear may be lurking inside. If others find themselves in Bear’s awful predicament, there will be little the Fed can do to forestall a rout.

I don't think ironic is the word I would use to describe the feeble attempt to get 'good news' out and try to build misplaced confidence. Criminal would be my choice.

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Jonpo....who's next?

Easy question

Lehman Brothers

Watch this space!!!!!!!!!!!!!!!!!!

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Brilliant spot redalert. How they must be relishing the irony at S&P. Think how good it will be for their reputation - and for them reputation is everything. Such micro-foresight, then being "found out" shows panic thinking.

Agreed

This is yet another catalyst. It's out in the open now.

AAA ratings = Candy Floss on a Stick

edit:typo

Edited by Peter & The Wolf

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Jonpo....who's next?

Easy question

Lehman Brothers

Watch this space!!!!!!!!!!!!!!!!!!

Smart man... indeedy, if anything, it'll be Lehman. This one also stuffed its stomach with filthy crap, and many have been trying to steer clear of this beastie since last summer.

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Smart man... indeedy, if anything, it'll be Lehman. This one also stuffed its stomach with filthy crap, and many have been trying to steer clear of this beastie since last summer.

And in the UK?

Birmingham Midshires make HBOS look less than prime.

Already priced-in do you think?

Edited by Peter & The Wolf

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Guest grumpy-old-man
Agreed

This is yet another catalyst. It's out in the open now.

AAA ratings = Candy Floss on a Stick

edit:typo

& that's the key difference since xmas Peter....

once it becomes acceptable, many more will follow.

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And in the UK?

Birmingham Midshires make HBOS look less than prime.

Already priced-in do you think?

"BM savings balances have doubled ... to £12 billion; mortgage assets have more than trebled to over £32 billion." This one (financing side) alone makes it suspectible, not aware of its lending practices though. Haven't done enough of research to be very assertive, but financial stocks seem to be cheap in general. Like Barclays. P/E = 6? :huh: But then again what has happened to NR and BSC just now probably justifies this risk aversion to the banking sector. Merrill, Citi, Lehman, Bear - all were fine with gearing up Carlyle 33 times ( :blink: ), so, as Einstein put it once, there are only 2 things that are unlimited: the Universe and human stupidity.

Edited by Meerkat

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"BM savings balances have doubled ... to £12 billion; mortgage assets have more than trebled to over £32 billion." This one (financing side) alone makes it suspectible, not aware of its lending practices though. Haven't done enough of research to be very assertive, but financial stocks seem to be cheap in general. Like Barclays. P/E = 6? :huh: But then again what has happened to NR and BSC just now probably justifies this risk aversion to the banking sector. Merrill, Citi, Lehman, Bear - all were fine with gearing up Carlyle 33 times ( :blink: ), so, as Einstein put it once, there are only 2 things that are unlimited: the Universe and human stupidity.

Ha- ha. Love it.

Um .............I wouldn't be seduced by the generous PE's.

I've had a few divvies in the past weeks. Still wish I'd offloaded some time ago.

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Ha- ha. Love it.

Um .............I wouldn't be seduced by the generous PE's.

I've had a few divvies in the past weeks. Still wish I'd offloaded some time ago.

I completely agree. There's certainly no free lunch if we don't know private (non-public) information, i.e. insider info. (Surely there is some free cheese in mouse traps like Bear Stearns :lol: ) I've been keeping my savings in short term deposits since last May. That's not because I want to time and beat the stock market (a very tall order), but due to other considerations. In any case, I wouldn't personally dare to take flyers (stock picking, overweighting, timing, 'investing' in commodities including gold) with more than 10% of my wealth no matter how seductive it may feel, the only exception being insider info :rolleyes:

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as Einstein put it once, there are only 2 things that are unlimited: the Universe and human stupidity.

priceless

also Hemingway

there are only two remedies for a mismanaged economy, inflation or war, pick your poison.

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I don't think ironic is the word I would use to describe the feeble attempt to get 'good news' out and try to build misplaced confidence. Criminal would be my choice.

S&P : There's light at end of tunnel! Sh!t, it's the Bear Stearns Express.

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priceless

also Hemingway

there are only two remedies for a mismanaged economy, inflation or war, pick your poison.

Brilliant Bardon. I had forgotten that one

"The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists."

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Brilliant Bardon. I had forgotten that one

"The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists."

Thanks for posting in full it is a far more effective statement than I had recalled

one more for inspiration

Arnold Schwarzenegger "To those critics who are so pessimistic about our economy, I say, Don't be economic girlie men!" –at the Republican convention"

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A very good friend of mine works for Lehmans and he assured me only last week that they were not as exposed to mortgages as other banks (like Bear).

IIRC Barclays and HBOS had much more of this toxic stuff hanging around - why not them next?

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Ive listened to several "xperts" on the wireless this morning, and they all seem to skirt around the issue.

They all speak of "innovation" in the last 10 years.

They all miss (deliberately IMHO) that these banksters have lent WAY too much to the insolvent, then hidden this stuff in the form of new "assets", themselves re rated by slight of hand and this new "GOLD" has been relent and leveraged god knows how many times.

a 100K default becomes a 1M problem,

No matter how much "real" money the CBS pump in to support this, the unwinding MUST proceed, and this new money will just disappear down the same black leveraged hole as the "innovated" money has.

Pump 1$ in and thats just a small percentage of the loss covered. There will be citizens blood on the streets while individual banksters in the 1000s profit and are protected.

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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