Lehman Bailout this Weekend (Bear Stearns replay)

[Arraya]

Roubini is scared!!
Money Quote:”If Lehman does not find a buyer over the weekend and the counterparties of Lehman withdraw their credit lines on Monday (as they all will in the absence of a deal) you will have not only a collapse of Lehman but also the beginning of a run on the other independent broker dealers (Merrill Lynch first but also in sequence Goldman Sachs and Morgan Stanley and possibly even those broker dealers that are part of a larger commercial bank, I.e. JP Morgan and Citigroup). Then this run would lead to a massive systemic meltdown of the financial system. That is the reason why the Fed has convened in emergency meetings the heads of all major Wall Street firms on Friday and again today to convince them not to pull the plug on Lehman and maintain their exposure to this distressed broker dealer.”

Go Here: http://tinyurl.com/RMeltdown

[Bubblesitter]

I am getting a bit nervous, this is looking like non-zero probability to trigger a “world upside down” scenario.

http://piggington.com/world_turned_upside_down

This is why I’m betting that in the end, the government will offer a bailout or “back-stop” of some sort.

There are 2 fundamental difference between Lehman and Bear Stearns. Bear Stearns had alot higher counterparty risk and their collapse was very quick and surprised many. Everyone knew Lehman was in very bad shape 8 months ago. What took so long to try to resolve this?

I supported the Bear Stearns bailout, I oppose the Lehman Bros bailout. The are similar beasts, however with different stripes.

Bubblesitter

[Bubblesitter]

I am getting a bit nervous, this is looking like non-zero probability to trigger a “world upside down” scenario.

http://piggington.com/world_turned_upside_down

This is why I’m betting that in the end, the government will offer a bailout or “back-stop” of some sort.

There are 2 fundamental difference between Lehman and Bear Stearns. Bear Stearns had alot higher counterparty risk and their collapse was very quick and surprised many. Everyone knew Lehman was in very bad shape 8 months ago. What took so long to try to resolve this?

I supported the Bear Stearns bailout, I oppose the Lehman Bros bailout. The are similar beasts, however with different stripes.

Bubblesitter

[Bubblesitter]

I am getting a bit nervous, this is looking like non-zero probability to trigger a “world upside down” scenario.

http://piggington.com/world_turned_upside_down

This is why I’m betting that in the end, the government will offer a bailout or “back-stop” of some sort.

There are 2 fundamental difference between Lehman and Bear Stearns. Bear Stearns had alot higher counterparty risk and their collapse was very quick and surprised many. Everyone knew Lehman was in very bad shape 8 months ago. What took so long to try to resolve this?

I supported the Bear Stearns bailout, I oppose the Lehman Bros bailout. The are similar beasts, however with different stripes.

Bubblesitter

[Bubblesitter]

I am getting a bit nervous, this is looking like non-zero probability to trigger a “world upside down” scenario.

http://piggington.com/world_turned_upside_down

This is why I’m betting that in the end, the government will offer a bailout or “back-stop” of some sort.

There are 2 fundamental difference between Lehman and Bear Stearns. Bear Stearns had alot higher counterparty risk and their collapse was very quick and surprised many. Everyone knew Lehman was in very bad shape 8 months ago. What took so long to try to resolve this?

I supported the Bear Stearns bailout, I oppose the Lehman Bros bailout. The are similar beasts, however with different stripes.

Bubblesitter

[Bubblesitter]

I am getting a bit nervous, this is looking like non-zero probability to trigger a “world upside down” scenario.

http://piggington.com/world_turned_upside_down

This is why I’m betting that in the end, the government will offer a bailout or “back-stop” of some sort.

There are 2 fundamental difference between Lehman and Bear Stearns. Bear Stearns had alot higher counterparty risk and their collapse was very quick and surprised many. Everyone knew Lehman was in very bad shape 8 months ago. What took so long to try to resolve this?

I supported the Bear Stearns bailout, I oppose the Lehman Bros bailout. The are similar beasts, however with different stripes.

Bubblesitter

[Bubblesitter]

Some high stakes discussions going on regarding Lehman. Barclays has apparently backed out, over loan gauranteees.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZvzZVTCUEKs

Perhaps like a spoiled teenager, Wall Street is now realizing that papa Government may not Bail them out.

http://money.cnn.com/2008/09/14/news/companies/lehman_chicken.fortune/index.htm?postversion=2008091410

Should be an interesting day on Wall street tommorrow, I could see a huge swing either way depending how this turns out today.

Bubblesitter

[Bubblesitter]

Some high stakes discussions going on regarding Lehman. Barclays has apparently backed out, over loan gauranteees.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZvzZVTCUEKs

Perhaps like a spoiled teenager, Wall Street is now realizing that papa Government may not Bail them out.

http://money.cnn.com/2008/09/14/news/companies/lehman_chicken.fortune/index.htm?postversion=2008091410

Should be an interesting day on Wall street tommorrow, I could see a huge swing either way depending how this turns out today.

Bubblesitter

[Bubblesitter]

Some high stakes discussions going on regarding Lehman. Barclays has apparently backed out, over loan gauranteees.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZvzZVTCUEKs

Perhaps like a spoiled teenager, Wall Street is now realizing that papa Government may not Bail them out.

http://money.cnn.com/2008/09/14/news/companies/lehman_chicken.fortune/index.htm?postversion=2008091410

Should be an interesting day on Wall street tommorrow, I could see a huge swing either way depending how this turns out today.

Bubblesitter

[Bubblesitter]

Some high stakes discussions going on regarding Lehman. Barclays has apparently backed out, over loan gauranteees.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZvzZVTCUEKs

Perhaps like a spoiled teenager, Wall Street is now realizing that papa Government may not Bail them out.

http://money.cnn.com/2008/09/14/news/companies/lehman_chicken.fortune/index.htm?postversion=2008091410

Should be an interesting day on Wall street tommorrow, I could see a huge swing either way depending how this turns out today.

Bubblesitter

[Bubblesitter]

Some high stakes discussions going on regarding Lehman. Barclays has apparently backed out, over loan gauranteees.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZvzZVTCUEKs

Perhaps like a spoiled teenager, Wall Street is now realizing that papa Government may not Bail them out.

http://money.cnn.com/2008/09/14/news/companies/lehman_chicken.fortune/index.htm?postversion=2008091410

Should be an interesting day on Wall street tommorrow, I could see a huge swing either way depending how this turns out today.

Bubblesitter

[jficquette]

[quote=patientlywaiting]Considering how Wamu and Lehman shares have dropped recently, I’m leaning towards the Fed making an example out of those institutions.

Lehman has access to the discount window where their can park their junk for some time. Bear Stearns didn’t have that option.

I believe that Bear Stearns was bailed-out with the hope of stemming the crisis. But now that Fannie and Freddie have been taken over, it’s time to let the invisible hand of market work its magic.

[/quote]

I tend to agree with you. I think that they tell Wall Street to handle it and if they can’t then they will let Lehman go under.

This “emergency meeting” the goverment is having today over Lehman may be more of a get together to decide on a course of action if Lehman fails and not so much as a meeting on how to save them.

John

[jficquette]

[quote=patientlywaiting]Considering how Wamu and Lehman shares have dropped recently, I’m leaning towards the Fed making an example out of those institutions.

Lehman has access to the discount window where their can park their junk for some time. Bear Stearns didn’t have that option.

I believe that Bear Stearns was bailed-out with the hope of stemming the crisis. But now that Fannie and Freddie have been taken over, it’s time to let the invisible hand of market work its magic.

[/quote]

I tend to agree with you. I think that they tell Wall Street to handle it and if they can’t then they will let Lehman go under.

This “emergency meeting” the goverment is having today over Lehman may be more of a get together to decide on a course of action if Lehman fails and not so much as a meeting on how to save them.

John

[jficquette]

[quote=patientlywaiting]Considering how Wamu and Lehman shares have dropped recently, I’m leaning towards the Fed making an example out of those institutions.

Lehman has access to the discount window where their can park their junk for some time. Bear Stearns didn’t have that option.

I believe that Bear Stearns was bailed-out with the hope of stemming the crisis. But now that Fannie and Freddie have been taken over, it’s time to let the invisible hand of market work its magic.

[/quote]

I tend to agree with you. I think that they tell Wall Street to handle it and if they can’t then they will let Lehman go under.

This “emergency meeting” the goverment is having today over Lehman may be more of a get together to decide on a course of action if Lehman fails and not so much as a meeting on how to save them.

John

[jficquette]

[quote=patientlywaiting]Considering how Wamu and Lehman shares have dropped recently, I’m leaning towards the Fed making an example out of those institutions.

Lehman has access to the discount window where their can park their junk for some time. Bear Stearns didn’t have that option.

I believe that Bear Stearns was bailed-out with the hope of stemming the crisis. But now that Fannie and Freddie have been taken over, it’s time to let the invisible hand of market work its magic.

[/quote]

I tend to agree with you. I think that they tell Wall Street to handle it and if they can’t then they will let Lehman go under.

This “emergency meeting” the goverment is having today over Lehman may be more of a get together to decide on a course of action if Lehman fails and not so much as a meeting on how to save them.

John

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