I think it’s pretty safe to say that Bear Streans is more or less finished.

[davelj]

drunkle,

I’d prefer that neither the equity nor debt holders be bailed out. But IF we’re going to bail people out – and that’s a given as far as I can tell – the LEAST the Fed can do is let the equity of these companies go to $1 (or thereabouts). (They can wipe out the preferred holders as well, if they like.) Again, the debt holders should feel pain too. No doubt about it. But that may be asking too much from the current Fed. Thus, all I ask is that at MINIMUM the equity holders get hosed. Recall that we already have something called the FDIC which is going to bail out most bank depositors (which are really just banks’ senior most debt holders). Extending such protection to the next level of debt holders in the capital structure isn’t a stretch considering all the BS that’s been going on as of late.

[drunkle]

dave:

as far as i can tell (from a layman’s pov), the equities are already hosed. there’ll be no bailout for the equities unless someone wants to come in with a buyout offer at recalculus prices.

the bonds and bond holders across the board are being saved here; if bsc went belly up and had to liquidate, everyone else holding those same bonds would be equally hosed. marked to market or as they say in housing, it’s a comp killer.

edit: fdic, sipc, etc… the fed just threw hundreds of billions of dollars into a black hole, what’s going to be left for depositor’s insurance afterwards? granted, they’re not the same entities, but by having the fed kill the dollar in order to save 1 lousy rotting piece of flesh, there’ll be nothing left for anyone to try and save the body…

[drunkle]

dave:

as far as i can tell (from a layman’s pov), the equities are already hosed. there’ll be no bailout for the equities unless someone wants to come in with a buyout offer at recalculus prices.

the bonds and bond holders across the board are being saved here; if bsc went belly up and had to liquidate, everyone else holding those same bonds would be equally hosed. marked to market or as they say in housing, it’s a comp killer.

edit: fdic, sipc, etc… the fed just threw hundreds of billions of dollars into a black hole, what’s going to be left for depositor’s insurance afterwards? granted, they’re not the same entities, but by having the fed kill the dollar in order to save 1 lousy rotting piece of flesh, there’ll be nothing left for anyone to try and save the body…

[drunkle]

dave:

as far as i can tell (from a layman’s pov), the equities are already hosed. there’ll be no bailout for the equities unless someone wants to come in with a buyout offer at recalculus prices.

the bonds and bond holders across the board are being saved here; if bsc went belly up and had to liquidate, everyone else holding those same bonds would be equally hosed. marked to market or as they say in housing, it’s a comp killer.

edit: fdic, sipc, etc… the fed just threw hundreds of billions of dollars into a black hole, what’s going to be left for depositor’s insurance afterwards? granted, they’re not the same entities, but by having the fed kill the dollar in order to save 1 lousy rotting piece of flesh, there’ll be nothing left for anyone to try and save the body…

[drunkle]

dave:

as far as i can tell (from a layman’s pov), the equities are already hosed. there’ll be no bailout for the equities unless someone wants to come in with a buyout offer at recalculus prices.

the bonds and bond holders across the board are being saved here; if bsc went belly up and had to liquidate, everyone else holding those same bonds would be equally hosed. marked to market or as they say in housing, it’s a comp killer.

edit: fdic, sipc, etc… the fed just threw hundreds of billions of dollars into a black hole, what’s going to be left for depositor’s insurance afterwards? granted, they’re not the same entities, but by having the fed kill the dollar in order to save 1 lousy rotting piece of flesh, there’ll be nothing left for anyone to try and save the body…

[drunkle]

dave:

as far as i can tell (from a layman’s pov), the equities are already hosed. there’ll be no bailout for the equities unless someone wants to come in with a buyout offer at recalculus prices.

the bonds and bond holders across the board are being saved here; if bsc went belly up and had to liquidate, everyone else holding those same bonds would be equally hosed. marked to market or as they say in housing, it’s a comp killer.

edit: fdic, sipc, etc… the fed just threw hundreds of billions of dollars into a black hole, what’s going to be left for depositor’s insurance afterwards? granted, they’re not the same entities, but by having the fed kill the dollar in order to save 1 lousy rotting piece of flesh, there’ll be nothing left for anyone to try and save the body…

[novice1027]

“The action won praise from the administration, with President Bush saying that Fed Chairman Ben Bernanke was "doing a good job under tough circumstances.”"

"Way to go Brownie, I mean Bennie!" 

Haven't we heard this from this crap before from George W?

[novice1027]

“The action won praise from the administration, with President Bush saying that Fed Chairman Ben Bernanke was "doing a good job under tough circumstances.”"

"Way to go Brownie, I mean Bennie!" 

Haven't we heard this from this crap before from George W?

[novice1027]

“The action won praise from the administration, with President Bush saying that Fed Chairman Ben Bernanke was "doing a good job under tough circumstances.”"

"Way to go Brownie, I mean Bennie!" 

Haven't we heard this from this crap before from George W?

[novice1027]

“The action won praise from the administration, with President Bush saying that Fed Chairman Ben Bernanke was "doing a good job under tough circumstances.”"

"Way to go Brownie, I mean Bennie!" 

Haven't we heard this from this crap before from George W?

[novice1027]

“The action won praise from the administration, with President Bush saying that Fed Chairman Ben Bernanke was "doing a good job under tough circumstances.”"

"Way to go Brownie, I mean Bennie!" 

Haven't we heard this from this crap before from George W?

[Deal Hunter]

This looks like a bail out, but it’s not. Bear Stearns could not open for business today. The Fed got JP Morgan to come in and put their hand on the gushing wound, but it is just a temporary measure for others to come in with buckets to collect any viable body parts.

Call it a “Term Fire Sale Facility” that only looks like a bail out. Make no mistake. Bear Stearns is done. It will be bought, absorbed or taken apart and sold for parts. Doing this for an investment bank (whose main business in 2007 was backing subprime hedge funds), is just to make the “bail outs” to come not look like a total collapse of the financial markets.

JP Morgan is next. If Citigroup doesn’t fall first. The next one to get run through the egg slicer on the investment bank side will be Merrill Lynch.

Remember LTCM? Central Banks have up to $1-2 Trillion to do this (LTCM was $1 Trillion in 1998). The CBs have plenty of “bail out” left in them.

[Deal Hunter]

This looks like a bail out, but it’s not. Bear Stearns could not open for business today. The Fed got JP Morgan to come in and put their hand on the gushing wound, but it is just a temporary measure for others to come in with buckets to collect any viable body parts.

Call it a “Term Fire Sale Facility” that only looks like a bail out. Make no mistake. Bear Stearns is done. It will be bought, absorbed or taken apart and sold for parts. Doing this for an investment bank (whose main business in 2007 was backing subprime hedge funds), is just to make the “bail outs” to come not look like a total collapse of the financial markets.

JP Morgan is next. If Citigroup doesn’t fall first. The next one to get run through the egg slicer on the investment bank side will be Merrill Lynch.

Remember LTCM? Central Banks have up to $1-2 Trillion to do this (LTCM was $1 Trillion in 1998). The CBs have plenty of “bail out” left in them.

[Deal Hunter]

This looks like a bail out, but it’s not. Bear Stearns could not open for business today. The Fed got JP Morgan to come in and put their hand on the gushing wound, but it is just a temporary measure for others to come in with buckets to collect any viable body parts.

Call it a “Term Fire Sale Facility” that only looks like a bail out. Make no mistake. Bear Stearns is done. It will be bought, absorbed or taken apart and sold for parts. Doing this for an investment bank (whose main business in 2007 was backing subprime hedge funds), is just to make the “bail outs” to come not look like a total collapse of the financial markets.

JP Morgan is next. If Citigroup doesn’t fall first. The next one to get run through the egg slicer on the investment bank side will be Merrill Lynch.

Remember LTCM? Central Banks have up to $1-2 Trillion to do this (LTCM was $1 Trillion in 1998). The CBs have plenty of “bail out” left in them.

[Deal Hunter]

This looks like a bail out, but it’s not. Bear Stearns could not open for business today. The Fed got JP Morgan to come in and put their hand on the gushing wound, but it is just a temporary measure for others to come in with buckets to collect any viable body parts.

Call it a “Term Fire Sale Facility” that only looks like a bail out. Make no mistake. Bear Stearns is done. It will be bought, absorbed or taken apart and sold for parts. Doing this for an investment bank (whose main business in 2007 was backing subprime hedge funds), is just to make the “bail outs” to come not look like a total collapse of the financial markets.

JP Morgan is next. If Citigroup doesn’t fall first. The next one to get run through the egg slicer on the investment bank side will be Merrill Lynch.

Remember LTCM? Central Banks have up to $1-2 Trillion to do this (LTCM was $1 Trillion in 1998). The CBs have plenty of “bail out” left in them.

[Author]

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