Pros and Cons of saving Bear Sterns

[donaldduckmoore]

I used to support what the Fed did or does to save the financial market that as a whole would save the economy. But recently, the fed keeps doing something to save a investment bank Bear Sterns and I really have no idea what impact of fall down of this institute would do to the economy. I strongly feel that this action is totally an act of a corrupted government trying to save the as.. of the rich. Maybe I am wrong. Can anyone name a few pros and cons please?

[JWM in SD]

JWM in SD

REad GolfGal’s posts in the other BSC threads. Although I find it very distasteful as well, it maybe that it was better alternative in the short term. In either case, it sets an extremely dangerous precedent for the greater economy.

[Ex-SD]

It sends the wrong message to Wall Street and the general public. The government should stay out of the affairs of private business’ and let them sink or swim.

[donaldduckmoore]

I am afraid that continuing throwing money to save this bank and others will eventually bleed the reserve for something really emergency in the future. Besides, if the fed will not be able to save it, it tells others that this is all the fed and the country have to save the world. By then, we will have more confidence problem. This is very risky.

[zzz]

donaldduckmoore – you should Google Great Depression and read about how many of those same issues facing that period of time, debt, contraction of money, are facing our economy and the Fed now. If the Fed did nothing and a massive banking failure occurred, resulting in our own Great Depression, would we blame the Fed? I’m not advocating Fed involvement or simply allowing the “free market” to exist as is. I have no debt so personally didn’t contribute to this nightmare, but since this mess was created – and it must be unwound, I’d prefer it happen without bringing the banking system to its knees.

I think its a naive to believe that only the rich bastards will suffer if Bear and the rest of Wall st, mortgage brokers etc eat shit if a bank fails. We too will be eating shit along with them. Shit rolls downhill.

[Ex-SD]

The management technique that the government is using to attack this problem is called “situational management ethics” and it’s just plain WRONG. You can’t effectively manage any company successively using situational ethics and the government is no different.

Golfgal: We’re already eating shit with the government printing funny money and devaluing our currency. I don’t give a rat’s ass if the Wall Street boys and the big investors take a huge haircut because I’m getting mine already. They made trillions from this fantasy investment scheme and now they need a whack in the head with a 2X4. The country will survive without government intervention but there needs to be some pain and some consequences. At this point, the economy is out of the control of anyone to quick fix it.

[zzz]

Ex-SD – to your comment about staying out of private business – this is our entire banking system at risk – not a little private business that sink or swim, won’t have any ripple down effects. Did you read about the trillions of dollars in “counterparty” exposure for Bear – do you know what this means and that this is not limited to Bear?

Sure it sucks now, and sure we’re eating shit in inflation, and let me cry about not wanting to take my $$ to Europe right now – all that will seem like cryin over spilt milk if our banking system fails. I suggest you too read about the Great Depression.

[Ex-SD]

Golfgal: I am well aware of how the banking system works. I’m a retired CEO and am 60 years old. I’ve read quite a bit about the Great Depression and I knew all of my grandparents and great grandparents who all lived to be in their late 80’s and 90’s. They told me, first hand, what happened during the depression to Joe Six Pack.

What I’ve learned in life is that if you give some people enough freedom with money, they turn into sociopaths and have no regard for what will/can happen to anyone else. I certainly didn’t raise my children with this philosophy but I’ve worked with enough spoiled adults who never think of the consequences of their actions. This is one of those cases and my opinion is that you can’t manage a crisis with situational ethics. You’re simply going to do more long term harm. We’ll just have to agree to disagree about how big brother should or shouldn’t get involved in this mess.
Once thing is for sure. There is absolutely nothing at this point that is going to stop a hard recession (and hopefully not a depression). It’s too late.

[Ex-SD]

Golfgal: I am well aware of how the banking system works. I’m a retired CEO and am 60 years old. I’ve read quite a bit about the Great Depression and I knew all of my grandparents and great grandparents who all lived to be in their late 80’s and 90’s. They told me, first hand, what happened during the depression to Joe Six Pack.

What I’ve learned in life is that if you give some people enough freedom with money, they turn into sociopaths and have no regard for what will/can happen to anyone else. I certainly didn’t raise my children with this philosophy but I’ve worked with enough spoiled adults who never think of the consequences of their actions. This is one of those cases and my opinion is that you can’t manage a crisis with situational ethics. You’re simply going to do more long term harm. We’ll just have to agree to disagree about how big brother should or shouldn’t get involved in this mess.
Once thing is for sure. There is absolutely nothing at this point that is going to stop a hard recession (and hopefully not a depression). It’s too late.

[Ex-SD]

Golfgal: I am well aware of how the banking system works. I’m a retired CEO and am 60 years old. I’ve read quite a bit about the Great Depression and I knew all of my grandparents and great grandparents who all lived to be in their late 80’s and 90’s. They told me, first hand, what happened during the depression to Joe Six Pack.

What I’ve learned in life is that if you give some people enough freedom with money, they turn into sociopaths and have no regard for what will/can happen to anyone else. I certainly didn’t raise my children with this philosophy but I’ve worked with enough spoiled adults who never think of the consequences of their actions. This is one of those cases and my opinion is that you can’t manage a crisis with situational ethics. You’re simply going to do more long term harm. We’ll just have to agree to disagree about how big brother should or shouldn’t get involved in this mess.
Once thing is for sure. There is absolutely nothing at this point that is going to stop a hard recession (and hopefully not a depression). It’s too late.

[Ex-SD]

Golfgal: I am well aware of how the banking system works. I’m a retired CEO and am 60 years old. I’ve read quite a bit about the Great Depression and I knew all of my grandparents and great grandparents who all lived to be in their late 80’s and 90’s. They told me, first hand, what happened during the depression to Joe Six Pack.

What I’ve learned in life is that if you give some people enough freedom with money, they turn into sociopaths and have no regard for what will/can happen to anyone else. I certainly didn’t raise my children with this philosophy but I’ve worked with enough spoiled adults who never think of the consequences of their actions. This is one of those cases and my opinion is that you can’t manage a crisis with situational ethics. You’re simply going to do more long term harm. We’ll just have to agree to disagree about how big brother should or shouldn’t get involved in this mess.
Once thing is for sure. There is absolutely nothing at this point that is going to stop a hard recession (and hopefully not a depression). It’s too late.

[Ex-SD]

Golfgal: I am well aware of how the banking system works. I’m a retired CEO and am 60 years old. I’ve read quite a bit about the Great Depression and I knew all of my grandparents and great grandparents who all lived to be in their late 80’s and 90’s. They told me, first hand, what happened during the depression to Joe Six Pack.

What I’ve learned in life is that if you give some people enough freedom with money, they turn into sociopaths and have no regard for what will/can happen to anyone else. I certainly didn’t raise my children with this philosophy but I’ve worked with enough spoiled adults who never think of the consequences of their actions. This is one of those cases and my opinion is that you can’t manage a crisis with situational ethics. You’re simply going to do more long term harm. We’ll just have to agree to disagree about how big brother should or shouldn’t get involved in this mess.
Once thing is for sure. There is absolutely nothing at this point that is going to stop a hard recession (and hopefully not a depression). It’s too late.

[Ex-SD]

duplicate

[Ex-SD]

duplicate

[Ex-SD]

duplicate

[Ex-SD]

duplicate

[Ex-SD]

duplicate

[drunkle]

seems silly to think that just because you, bernanke, anyone else has studied the great depression that you automatically know how to prevent it.

700 trillion dollars in derivatives are going to be stoppered by fed?

http://www.marketwatch.com/news/story/derivatives-new-ticking-time-bomb/story.aspx?guid=%7BB9E54A5D-4796-4D0D-AC9E-D9124B59D436%7D

the fed that allowed this to happen is now to be trusted with our salvation?

i guess some people are just still in denial.

[zzz]

drunkle- getting tired of you suggesting that I don’t support trading in the market, shorting, etc or that I even know how to fix this problem. I don’t know, I just point out what happened historically and perhaps why the Fed stepping in isn’t so wrong and why there have been debates on this topic – and why there will be no magic bullet. Its called presenting a point of view, an opinion. I don’t have a magic ball, I have no clue what will happen. I do however understand how the i-banks and commercial banks have interdependencies and valuing derivatives is a complex imperfect arena. Its just not as simple as saying damn those greedy bastards and hope they all suffer from their firms collapsing….

[drunkle]

golfgal:

i’m merely calling you out on your condescending attitude. “you should Google Great Depression”, “be careful what you wish for” and “its a naive to believe that only the rich bastards will suffer”.

nobody knows what to do, people are angry, people are trying to cope and yet you sit on a high horse, ignore the lack of responsibility that these bastards exhibit and admonish people that if it weren’t for our great and mighty corporate bankers, we’d all be pig fodder. please.

[Deal Hunter]

14,000 Bear Stearns employees. 100% of them took a combination of wage plus stock options as compensation for their work. 7,000 will be laid off and ALL of them have experienced a 90% decline in their net worth and 401Ks. Not all these people are big corporate jocks. Some of them are middle managment and some are entry level clerks. All have suffered.

However, if Bear hadn’t been “sacrificed” in this manner, there would be much more than 7,000 financial market employees affected by the bankruptcy/folding of Bear Stearns. At risk were all the other financial institutions like Lehman, Goldman, Merrill, etc. Estimated about 100,000 employees.

Now, having said all that… it does give me pause that the Fed went all out to save the big 6 remaining investment houses and 100,000 employees, but so far remain cold to the fate of 2 million distressed homeowners?

If the Fed would stop lowering rates, RAISE the rates and in turn return some value to assets like real estate, then perhaps the 2 million homeowners would face a far better financial picture. Obviously, without the powerful lobby of the banks, the Fed is hard pressed to do such a thing for homeowners.

[Anonymous]

The Average salary of a Bear Stearns employee in 2007 was over $600,000. Screw them all..

[zzz]

“The Average salary of a Bear Stearns employee in 2007 was over $600,000. Screw them all” stated by deadzone

This is the problem with averages – I can guarantee you someone who is a 1st or 2nd year analyst does not make 600K, nor does the person in opps or technology. In fact, I would guess to say that at least HALF of their employees don’t make 600K. If you took your own company and “averaged” all the compensation – those numbers too might look quite large.

Do you know how many hours a 1st or 2nd year analyst at Goldman Sachs, Morgan Stanley, Bear Stearns for instance works? Most of them “average” 100+ hours a week. They will take home 80K-100K with their bonus included in that figure. Do you know what that comes out to per hour? Between $15 and $19 per hour.

[Ex-SD]

http://www.bloomberg.com/apps/news?pid=20601109&sid=aOv1UfsECliU&refer=exclusive

[Ex-SD]

http://www.bloomberg.com/apps/news?pid=20601109&sid=aOv1UfsECliU&refer=exclusive

[Ex-SD]

http://www.bloomberg.com/apps/news?pid=20601109&sid=aOv1UfsECliU&refer=exclusive

[Ex-SD]

http://www.bloomberg.com/apps/news?pid=20601109&sid=aOv1UfsECliU&refer=exclusive

[Ex-SD]

http://www.bloomberg.com/apps/news?pid=20601109&sid=aOv1UfsECliU&refer=exclusive

[zzz]

“The Average salary of a Bear Stearns employee in 2007 was over $600,000. Screw them all” stated by deadzone

This is the problem with averages – I can guarantee you someone who is a 1st or 2nd year analyst does not make 600K, nor does the person in opps or technology. In fact, I would guess to say that at least HALF of their employees don’t make 600K. If you took your own company and “averaged” all the compensation – those numbers too might look quite large.

Do you know how many hours a 1st or 2nd year analyst at Goldman Sachs, Morgan Stanley, Bear Stearns for instance works? Most of them “average” 100+ hours a week. They will take home 80K-100K with their bonus included in that figure. Do you know what that comes out to per hour? Between $15 and $19 per hour.

[zzz]

“The Average salary of a Bear Stearns employee in 2007 was over $600,000. Screw them all” stated by deadzone

This is the problem with averages – I can guarantee you someone who is a 1st or 2nd year analyst does not make 600K, nor does the person in opps or technology. In fact, I would guess to say that at least HALF of their employees don’t make 600K. If you took your own company and “averaged” all the compensation – those numbers too might look quite large.

Do you know how many hours a 1st or 2nd year analyst at Goldman Sachs, Morgan Stanley, Bear Stearns for instance works? Most of them “average” 100+ hours a week. They will take home 80K-100K with their bonus included in that figure. Do you know what that comes out to per hour? Between $15 and $19 per hour.

[zzz]

“The Average salary of a Bear Stearns employee in 2007 was over $600,000. Screw them all” stated by deadzone

This is the problem with averages – I can guarantee you someone who is a 1st or 2nd year analyst does not make 600K, nor does the person in opps or technology. In fact, I would guess to say that at least HALF of their employees don’t make 600K. If you took your own company and “averaged” all the compensation – those numbers too might look quite large.

Do you know how many hours a 1st or 2nd year analyst at Goldman Sachs, Morgan Stanley, Bear Stearns for instance works? Most of them “average” 100+ hours a week. They will take home 80K-100K with their bonus included in that figure. Do you know what that comes out to per hour? Between $15 and $19 per hour.

[zzz]

“The Average salary of a Bear Stearns employee in 2007 was over $600,000. Screw them all” stated by deadzone

This is the problem with averages – I can guarantee you someone who is a 1st or 2nd year analyst does not make 600K, nor does the person in opps or technology. In fact, I would guess to say that at least HALF of their employees don’t make 600K. If you took your own company and “averaged” all the compensation – those numbers too might look quite large.

Do you know how many hours a 1st or 2nd year analyst at Goldman Sachs, Morgan Stanley, Bear Stearns for instance works? Most of them “average” 100+ hours a week. They will take home 80K-100K with their bonus included in that figure. Do you know what that comes out to per hour? Between $15 and $19 per hour.

[Anonymous]

The Average salary of a Bear Stearns employee in 2007 was over $600,000. Screw them all..

[Anonymous]

The Average salary of a Bear Stearns employee in 2007 was over $600,000. Screw them all..

[Anonymous]

The Average salary of a Bear Stearns employee in 2007 was over $600,000. Screw them all..

[Anonymous]

The Average salary of a Bear Stearns employee in 2007 was over $600,000. Screw them all..

[drunkle]

deal hunter:

no matter what, a price has been set on the assets. bear stearns’ holdings were sold for $2/share. all the other ib’s, brokerages, cb’s, etc have been given a ceiling.

[Deal Hunter]

drunkle, you’re right. I wouldn’t pay more than $2 per share for the IB’s that took on those derivatives. Raising the interest rate, would make their building in Manhattan more valuable, but that’s it.

It’s the battle for paper assets that the Fed is trying to win. Of course, in the process they’re turning the US Dollar into Charmin.

[equalizer]

Jamie Dimon just committed outright theft from the US taxpayers and BSC employees. Some crazy lunatic theory? Nope, most of the posters and many of the professionals on the WSJ.com stated this today. The proof: the stock price of JPMorgan up 10% today.

[equalizer]

Jamie Dimon just committed outright theft from the US taxpayers and BSC employees. Some crazy lunatic theory? Nope, most of the posters and many of the professionals on the WSJ.com stated this today. The proof: the stock price of JPMorgan up 10% today.

[equalizer]

Jamie Dimon just committed outright theft from the US taxpayers and BSC employees. Some crazy lunatic theory? Nope, most of the posters and many of the professionals on the WSJ.com stated this today. The proof: the stock price of JPMorgan up 10% today.

[equalizer]

Jamie Dimon just committed outright theft from the US taxpayers and BSC employees. Some crazy lunatic theory? Nope, most of the posters and many of the professionals on the WSJ.com stated this today. The proof: the stock price of JPMorgan up 10% today.

[equalizer]

Jamie Dimon just committed outright theft from the US taxpayers and BSC employees. Some crazy lunatic theory? Nope, most of the posters and many of the professionals on the WSJ.com stated this today. The proof: the stock price of JPMorgan up 10% today.

[an]

Bear wasn’t sold for $2/share. JP Morgan Chase offered $2/share. Bear still have an chance to reject this offer or negotiate. There might even be a different offer all together. The point is that this deal is not closed and the market treat it that way. Why do you think BSC closed today at $4.81 when JP offered $2? The lowest it went today was $2.84, still well over the $2 offered.

I don’t like bail out just like the next guy, especially when it’s more the big wigs. However, like golfgal point out, you also have to consider what would have happened if the were no bail out and FED defended the dollar and raised rates instead of lowering it the last several months. The worse case would be major bank failure/bankruptcy. Which will make it nearly impossible to get a mortgage. Since rates would be higher, all the sub-prime and most of the alt-A will go into foreclosure. This would hemorrhage from top to bottom. Sure, the saver might think they’re insulated now, but what would happened if all of this cause a depression and most of us lost our jobs for 2-4 years. Do you have enough cash to survive that long? If so, would you have extra $ to take advantage of the hard crash? Just trying to play devil’s advocate, but there’s no silver bullet. We have to pick the lesser of the 2 evils, and I have to assume that all those people running the FED are smarter than all of us on this board, or else, God help us all.

[equalizer]

I was only commenting on the price and mechanism of the action, not the action itself. As for the Fed being smart, you did read the other thread in which the profs refuted the bubble in 2005, right? Well, one of them is Himmelberg: Senior Economist, Research and Statistics Group, Federal Reserve Bank of New York. New York Fed gave BSC green light then, so they had to support them now.

[drunkle]

asia:

the fed is smarter than us and yet they still can’t “fix it”. the wraps are off, what you thought was a bently turned out to be an edsel. no amount of credit in the world is going to make you go through with the purchase.

pray to god, but trust in smith and wesson.

[an]

No matter how smart anyone is, no one can fix human greed and stupidity. The bubble contains both. So, the fed is doing there best with what they got.

[TheBreeze]

This blog has been around since 2004. There are several other blogs out there that have warned of the dangers to our economy due to these 100%+ stated, cash back, no doc, no income loans that have been going on for years. Where has the Fed been during all this time?

If all of these individual bloggers with limited time and resources could see the coming danger for years, then how come the Fed with essentially unlimited time and resources couldn’t see it? It’s just ridiculous to think that the Fed is doing a great job now after totally ignoring this budding situation for years.

As for Bear, I don’t think the Fed backing was terrible. My understanding is that Bear is resonsible for clearing in certain markets and if they had gone under then there would have been a severe disruption. However, it still pisses me off to think about all these Bear assholes who were making million-dollar bonuses for essentially being scammers. And now the Fed has to come in with $30 billion of taxpayer money to essentially pay all those bonuses retroactively. Yeah, stuff like that tends to piss off your average American.

Like Ex-SD, I’m sick of hearing about all this Great Depression crap. The Fed has already proved they can’t find their ass with both hands by sitting on (some would say encouraging) this problem since at least 2004. To say that the Fed now has some magic Great Depression-prevention formula now is ridiculous. The ECB has clearly done a better job throughout this period. At least European savers aren’t getting anally-raped every day due to the collapse of their currency.

[an]

It’s just slightly different being an individual hypothesizing the worse case scenario vs having to act on your hypothesis on a grand scale that will affect everyone. Please tell, what would happen if it’s up to people on this forum running the FED. I hear people on here wanting to either keep rates the same or raising them to defend the dollar. Who here predicted a 85 year old IB going out at fire sale price? If the FED didn’t act the way they did, Bear might just be the first.

[an]

It’s just slightly different being an individual hypothesizing the worse case scenario vs having to act on your hypothesis on a grand scale that will affect everyone. Please tell, what would happen if it’s up to people on this forum running the FED. I hear people on here wanting to either keep rates the same or raising them to defend the dollar. Who here predicted a 85 year old IB going out at fire sale price? If the FED didn’t act the way they did, Bear might just be the first.

[an]

It’s just slightly different being an individual hypothesizing the worse case scenario vs having to act on your hypothesis on a grand scale that will affect everyone. Please tell, what would happen if it’s up to people on this forum running the FED. I hear people on here wanting to either keep rates the same or raising them to defend the dollar. Who here predicted a 85 year old IB going out at fire sale price? If the FED didn’t act the way they did, Bear might just be the first.

[an]

It’s just slightly different being an individual hypothesizing the worse case scenario vs having to act on your hypothesis on a grand scale that will affect everyone. Please tell, what would happen if it’s up to people on this forum running the FED. I hear people on here wanting to either keep rates the same or raising them to defend the dollar. Who here predicted a 85 year old IB going out at fire sale price? If the FED didn’t act the way they did, Bear might just be the first.

[an]

It’s just slightly different being an individual hypothesizing the worse case scenario vs having to act on your hypothesis on a grand scale that will affect everyone. Please tell, what would happen if it’s up to people on this forum running the FED. I hear people on here wanting to either keep rates the same or raising them to defend the dollar. Who here predicted a 85 year old IB going out at fire sale price? If the FED didn’t act the way they did, Bear might just be the first.

[TheBreeze]

This blog has been around since 2004. There are several other blogs out there that have warned of the dangers to our economy due to these 100%+ stated, cash back, no doc, no income loans that have been going on for years. Where has the Fed been during all this time?

If all of these individual bloggers with limited time and resources could see the coming danger for years, then how come the Fed with essentially unlimited time and resources couldn’t see it? It’s just ridiculous to think that the Fed is doing a great job now after totally ignoring this budding situation for years.

As for Bear, I don’t think the Fed backing was terrible. My understanding is that Bear is resonsible for clearing in certain markets and if they had gone under then there would have been a severe disruption. However, it still pisses me off to think about all these Bear assholes who were making million-dollar bonuses for essentially being scammers. And now the Fed has to come in with $30 billion of taxpayer money to essentially pay all those bonuses retroactively. Yeah, stuff like that tends to piss off your average American.

Like Ex-SD, I’m sick of hearing about all this Great Depression crap. The Fed has already proved they can’t find their ass with both hands by sitting on (some would say encouraging) this problem since at least 2004. To say that the Fed now has some magic Great Depression-prevention formula now is ridiculous. The ECB has clearly done a better job throughout this period. At least European savers aren’t getting anally-raped every day due to the collapse of their currency.

[TheBreeze]

This blog has been around since 2004. There are several other blogs out there that have warned of the dangers to our economy due to these 100%+ stated, cash back, no doc, no income loans that have been going on for years. Where has the Fed been during all this time?

If all of these individual bloggers with limited time and resources could see the coming danger for years, then how come the Fed with essentially unlimited time and resources couldn’t see it? It’s just ridiculous to think that the Fed is doing a great job now after totally ignoring this budding situation for years.

As for Bear, I don’t think the Fed backing was terrible. My understanding is that Bear is resonsible for clearing in certain markets and if they had gone under then there would have been a severe disruption. However, it still pisses me off to think about all these Bear assholes who were making million-dollar bonuses for essentially being scammers. And now the Fed has to come in with $30 billion of taxpayer money to essentially pay all those bonuses retroactively. Yeah, stuff like that tends to piss off your average American.

Like Ex-SD, I’m sick of hearing about all this Great Depression crap. The Fed has already proved they can’t find their ass with both hands by sitting on (some would say encouraging) this problem since at least 2004. To say that the Fed now has some magic Great Depression-prevention formula now is ridiculous. The ECB has clearly done a better job throughout this period. At least European savers aren’t getting anally-raped every day due to the collapse of their currency.

[TheBreeze]

This blog has been around since 2004. There are several other blogs out there that have warned of the dangers to our economy due to these 100%+ stated, cash back, no doc, no income loans that have been going on for years. Where has the Fed been during all this time?

If all of these individual bloggers with limited time and resources could see the coming danger for years, then how come the Fed with essentially unlimited time and resources couldn’t see it? It’s just ridiculous to think that the Fed is doing a great job now after totally ignoring this budding situation for years.

As for Bear, I don’t think the Fed backing was terrible. My understanding is that Bear is resonsible for clearing in certain markets and if they had gone under then there would have been a severe disruption. However, it still pisses me off to think about all these Bear assholes who were making million-dollar bonuses for essentially being scammers. And now the Fed has to come in with $30 billion of taxpayer money to essentially pay all those bonuses retroactively. Yeah, stuff like that tends to piss off your average American.

Like Ex-SD, I’m sick of hearing about all this Great Depression crap. The Fed has already proved they can’t find their ass with both hands by sitting on (some would say encouraging) this problem since at least 2004. To say that the Fed now has some magic Great Depression-prevention formula now is ridiculous. The ECB has clearly done a better job throughout this period. At least European savers aren’t getting anally-raped every day due to the collapse of their currency.

[TheBreeze]

This blog has been around since 2004. There are several other blogs out there that have warned of the dangers to our economy due to these 100%+ stated, cash back, no doc, no income loans that have been going on for years. Where has the Fed been during all this time?

If all of these individual bloggers with limited time and resources could see the coming danger for years, then how come the Fed with essentially unlimited time and resources couldn’t see it? It’s just ridiculous to think that the Fed is doing a great job now after totally ignoring this budding situation for years.

As for Bear, I don’t think the Fed backing was terrible. My understanding is that Bear is resonsible for clearing in certain markets and if they had gone under then there would have been a severe disruption. However, it still pisses me off to think about all these Bear assholes who were making million-dollar bonuses for essentially being scammers. And now the Fed has to come in with $30 billion of taxpayer money to essentially pay all those bonuses retroactively. Yeah, stuff like that tends to piss off your average American.

Like Ex-SD, I’m sick of hearing about all this Great Depression crap. The Fed has already proved they can’t find their ass with both hands by sitting on (some would say encouraging) this problem since at least 2004. To say that the Fed now has some magic Great Depression-prevention formula now is ridiculous. The ECB has clearly done a better job throughout this period. At least European savers aren’t getting anally-raped every day due to the collapse of their currency.

[an]

No matter how smart anyone is, no one can fix human greed and stupidity. The bubble contains both. So, the fed is doing there best with what they got.

[an]

No matter how smart anyone is, no one can fix human greed and stupidity. The bubble contains both. So, the fed is doing there best with what they got.

[an]

No matter how smart anyone is, no one can fix human greed and stupidity. The bubble contains both. So, the fed is doing there best with what they got.

[an]

No matter how smart anyone is, no one can fix human greed and stupidity. The bubble contains both. So, the fed is doing there best with what they got.

[drunkle]

asia:

the fed is smarter than us and yet they still can’t “fix it”. the wraps are off, what you thought was a bently turned out to be an edsel. no amount of credit in the world is going to make you go through with the purchase.

pray to god, but trust in smith and wesson.

[drunkle]

asia:

the fed is smarter than us and yet they still can’t “fix it”. the wraps are off, what you thought was a bently turned out to be an edsel. no amount of credit in the world is going to make you go through with the purchase.

pray to god, but trust in smith and wesson.

[drunkle]

asia:

the fed is smarter than us and yet they still can’t “fix it”. the wraps are off, what you thought was a bently turned out to be an edsel. no amount of credit in the world is going to make you go through with the purchase.

pray to god, but trust in smith and wesson.

[drunkle]

asia:

the fed is smarter than us and yet they still can’t “fix it”. the wraps are off, what you thought was a bently turned out to be an edsel. no amount of credit in the world is going to make you go through with the purchase.

pray to god, but trust in smith and wesson.

[equalizer]

I was only commenting on the price and mechanism of the action, not the action itself. As for the Fed being smart, you did read the other thread in which the profs refuted the bubble in 2005, right? Well, one of them is Himmelberg: Senior Economist, Research and Statistics Group, Federal Reserve Bank of New York. New York Fed gave BSC green light then, so they had to support them now.

[equalizer]

I was only commenting on the price and mechanism of the action, not the action itself. As for the Fed being smart, you did read the other thread in which the profs refuted the bubble in 2005, right? Well, one of them is Himmelberg: Senior Economist, Research and Statistics Group, Federal Reserve Bank of New York. New York Fed gave BSC green light then, so they had to support them now.

[equalizer]

I was only commenting on the price and mechanism of the action, not the action itself. As for the Fed being smart, you did read the other thread in which the profs refuted the bubble in 2005, right? Well, one of them is Himmelberg: Senior Economist, Research and Statistics Group, Federal Reserve Bank of New York. New York Fed gave BSC green light then, so they had to support them now.

[equalizer]

I was only commenting on the price and mechanism of the action, not the action itself. As for the Fed being smart, you did read the other thread in which the profs refuted the bubble in 2005, right? Well, one of them is Himmelberg: Senior Economist, Research and Statistics Group, Federal Reserve Bank of New York. New York Fed gave BSC green light then, so they had to support them now.

[an]

Bear wasn’t sold for $2/share. JP Morgan Chase offered $2/share. Bear still have an chance to reject this offer or negotiate. There might even be a different offer all together. The point is that this deal is not closed and the market treat it that way. Why do you think BSC closed today at $4.81 when JP offered $2? The lowest it went today was $2.84, still well over the $2 offered.

I don’t like bail out just like the next guy, especially when it’s more the big wigs. However, like golfgal point out, you also have to consider what would have happened if the were no bail out and FED defended the dollar and raised rates instead of lowering it the last several months. The worse case would be major bank failure/bankruptcy. Which will make it nearly impossible to get a mortgage. Since rates would be higher, all the sub-prime and most of the alt-A will go into foreclosure. This would hemorrhage from top to bottom. Sure, the saver might think they’re insulated now, but what would happened if all of this cause a depression and most of us lost our jobs for 2-4 years. Do you have enough cash to survive that long? If so, would you have extra $ to take advantage of the hard crash? Just trying to play devil’s advocate, but there’s no silver bullet. We have to pick the lesser of the 2 evils, and I have to assume that all those people running the FED are smarter than all of us on this board, or else, God help us all.

[an]

Bear wasn’t sold for $2/share. JP Morgan Chase offered $2/share. Bear still have an chance to reject this offer or negotiate. There might even be a different offer all together. The point is that this deal is not closed and the market treat it that way. Why do you think BSC closed today at $4.81 when JP offered $2? The lowest it went today was $2.84, still well over the $2 offered.

I don’t like bail out just like the next guy, especially when it’s more the big wigs. However, like golfgal point out, you also have to consider what would have happened if the were no bail out and FED defended the dollar and raised rates instead of lowering it the last several months. The worse case would be major bank failure/bankruptcy. Which will make it nearly impossible to get a mortgage. Since rates would be higher, all the sub-prime and most of the alt-A will go into foreclosure. This would hemorrhage from top to bottom. Sure, the saver might think they’re insulated now, but what would happened if all of this cause a depression and most of us lost our jobs for 2-4 years. Do you have enough cash to survive that long? If so, would you have extra $ to take advantage of the hard crash? Just trying to play devil’s advocate, but there’s no silver bullet. We have to pick the lesser of the 2 evils, and I have to assume that all those people running the FED are smarter than all of us on this board, or else, God help us all.

[an]

Bear wasn’t sold for $2/share. JP Morgan Chase offered $2/share. Bear still have an chance to reject this offer or negotiate. There might even be a different offer all together. The point is that this deal is not closed and the market treat it that way. Why do you think BSC closed today at $4.81 when JP offered $2? The lowest it went today was $2.84, still well over the $2 offered.

I don’t like bail out just like the next guy, especially when it’s more the big wigs. However, like golfgal point out, you also have to consider what would have happened if the were no bail out and FED defended the dollar and raised rates instead of lowering it the last several months. The worse case would be major bank failure/bankruptcy. Which will make it nearly impossible to get a mortgage. Since rates would be higher, all the sub-prime and most of the alt-A will go into foreclosure. This would hemorrhage from top to bottom. Sure, the saver might think they’re insulated now, but what would happened if all of this cause a depression and most of us lost our jobs for 2-4 years. Do you have enough cash to survive that long? If so, would you have extra $ to take advantage of the hard crash? Just trying to play devil’s advocate, but there’s no silver bullet. We have to pick the lesser of the 2 evils, and I have to assume that all those people running the FED are smarter than all of us on this board, or else, God help us all.

[an]

Bear wasn’t sold for $2/share. JP Morgan Chase offered $2/share. Bear still have an chance to reject this offer or negotiate. There might even be a different offer all together. The point is that this deal is not closed and the market treat it that way. Why do you think BSC closed today at $4.81 when JP offered $2? The lowest it went today was $2.84, still well over the $2 offered.

I don’t like bail out just like the next guy, especially when it’s more the big wigs. However, like golfgal point out, you also have to consider what would have happened if the were no bail out and FED defended the dollar and raised rates instead of lowering it the last several months. The worse case would be major bank failure/bankruptcy. Which will make it nearly impossible to get a mortgage. Since rates would be higher, all the sub-prime and most of the alt-A will go into foreclosure. This would hemorrhage from top to bottom. Sure, the saver might think they’re insulated now, but what would happened if all of this cause a depression and most of us lost our jobs for 2-4 years. Do you have enough cash to survive that long? If so, would you have extra $ to take advantage of the hard crash? Just trying to play devil’s advocate, but there’s no silver bullet. We have to pick the lesser of the 2 evils, and I have to assume that all those people running the FED are smarter than all of us on this board, or else, God help us all.

[Deal Hunter]

drunkle, you’re right. I wouldn’t pay more than $2 per share for the IB’s that took on those derivatives. Raising the interest rate, would make their building in Manhattan more valuable, but that’s it.

It’s the battle for paper assets that the Fed is trying to win. Of course, in the process they’re turning the US Dollar into Charmin.

[Deal Hunter]

drunkle, you’re right. I wouldn’t pay more than $2 per share for the IB’s that took on those derivatives. Raising the interest rate, would make their building in Manhattan more valuable, but that’s it.

It’s the battle for paper assets that the Fed is trying to win. Of course, in the process they’re turning the US Dollar into Charmin.

[Deal Hunter]

drunkle, you’re right. I wouldn’t pay more than $2 per share for the IB’s that took on those derivatives. Raising the interest rate, would make their building in Manhattan more valuable, but that’s it.

It’s the battle for paper assets that the Fed is trying to win. Of course, in the process they’re turning the US Dollar into Charmin.

[Deal Hunter]

drunkle, you’re right. I wouldn’t pay more than $2 per share for the IB’s that took on those derivatives. Raising the interest rate, would make their building in Manhattan more valuable, but that’s it.

It’s the battle for paper assets that the Fed is trying to win. Of course, in the process they’re turning the US Dollar into Charmin.

[drunkle]

deal hunter:

no matter what, a price has been set on the assets. bear stearns’ holdings were sold for $2/share. all the other ib’s, brokerages, cb’s, etc have been given a ceiling.

[drunkle]

deal hunter:

no matter what, a price has been set on the assets. bear stearns’ holdings were sold for $2/share. all the other ib’s, brokerages, cb’s, etc have been given a ceiling.

[drunkle]

deal hunter:

no matter what, a price has been set on the assets. bear stearns’ holdings were sold for $2/share. all the other ib’s, brokerages, cb’s, etc have been given a ceiling.

[drunkle]

deal hunter:

no matter what, a price has been set on the assets. bear stearns’ holdings were sold for $2/share. all the other ib’s, brokerages, cb’s, etc have been given a ceiling.

[Deal Hunter]

14,000 Bear Stearns employees. 100% of them took a combination of wage plus stock options as compensation for their work. 7,000 will be laid off and ALL of them have experienced a 90% decline in their net worth and 401Ks. Not all these people are big corporate jocks. Some of them are middle managment and some are entry level clerks. All have suffered.

However, if Bear hadn’t been “sacrificed” in this manner, there would be much more than 7,000 financial market employees affected by the bankruptcy/folding of Bear Stearns. At risk were all the other financial institutions like Lehman, Goldman, Merrill, etc. Estimated about 100,000 employees.

Now, having said all that… it does give me pause that the Fed went all out to save the big 6 remaining investment houses and 100,000 employees, but so far remain cold to the fate of 2 million distressed homeowners?

If the Fed would stop lowering rates, RAISE the rates and in turn return some value to assets like real estate, then perhaps the 2 million homeowners would face a far better financial picture. Obviously, without the powerful lobby of the banks, the Fed is hard pressed to do such a thing for homeowners.

[Deal Hunter]

14,000 Bear Stearns employees. 100% of them took a combination of wage plus stock options as compensation for their work. 7,000 will be laid off and ALL of them have experienced a 90% decline in their net worth and 401Ks. Not all these people are big corporate jocks. Some of them are middle managment and some are entry level clerks. All have suffered.

However, if Bear hadn’t been “sacrificed” in this manner, there would be much more than 7,000 financial market employees affected by the bankruptcy/folding of Bear Stearns. At risk were all the other financial institutions like Lehman, Goldman, Merrill, etc. Estimated about 100,000 employees.

Now, having said all that… it does give me pause that the Fed went all out to save the big 6 remaining investment houses and 100,000 employees, but so far remain cold to the fate of 2 million distressed homeowners?

If the Fed would stop lowering rates, RAISE the rates and in turn return some value to assets like real estate, then perhaps the 2 million homeowners would face a far better financial picture. Obviously, without the powerful lobby of the banks, the Fed is hard pressed to do such a thing for homeowners.

[Deal Hunter]

14,000 Bear Stearns employees. 100% of them took a combination of wage plus stock options as compensation for their work. 7,000 will be laid off and ALL of them have experienced a 90% decline in their net worth and 401Ks. Not all these people are big corporate jocks. Some of them are middle managment and some are entry level clerks. All have suffered.

However, if Bear hadn’t been “sacrificed” in this manner, there would be much more than 7,000 financial market employees affected by the bankruptcy/folding of Bear Stearns. At risk were all the other financial institutions like Lehman, Goldman, Merrill, etc. Estimated about 100,000 employees.

Now, having said all that… it does give me pause that the Fed went all out to save the big 6 remaining investment houses and 100,000 employees, but so far remain cold to the fate of 2 million distressed homeowners?

If the Fed would stop lowering rates, RAISE the rates and in turn return some value to assets like real estate, then perhaps the 2 million homeowners would face a far better financial picture. Obviously, without the powerful lobby of the banks, the Fed is hard pressed to do such a thing for homeowners.

[Deal Hunter]

14,000 Bear Stearns employees. 100% of them took a combination of wage plus stock options as compensation for their work. 7,000 will be laid off and ALL of them have experienced a 90% decline in their net worth and 401Ks. Not all these people are big corporate jocks. Some of them are middle managment and some are entry level clerks. All have suffered.

However, if Bear hadn’t been “sacrificed” in this manner, there would be much more than 7,000 financial market employees affected by the bankruptcy/folding of Bear Stearns. At risk were all the other financial institutions like Lehman, Goldman, Merrill, etc. Estimated about 100,000 employees.

Now, having said all that… it does give me pause that the Fed went all out to save the big 6 remaining investment houses and 100,000 employees, but so far remain cold to the fate of 2 million distressed homeowners?

If the Fed would stop lowering rates, RAISE the rates and in turn return some value to assets like real estate, then perhaps the 2 million homeowners would face a far better financial picture. Obviously, without the powerful lobby of the banks, the Fed is hard pressed to do such a thing for homeowners.

[drunkle]

golfgal:

i’m merely calling you out on your condescending attitude. “you should Google Great Depression”, “be careful what you wish for” and “its a naive to believe that only the rich bastards will suffer”.

nobody knows what to do, people are angry, people are trying to cope and yet you sit on a high horse, ignore the lack of responsibility that these bastards exhibit and admonish people that if it weren’t for our great and mighty corporate bankers, we’d all be pig fodder. please.

[drunkle]

golfgal:

i’m merely calling you out on your condescending attitude. “you should Google Great Depression”, “be careful what you wish for” and “its a naive to believe that only the rich bastards will suffer”.

nobody knows what to do, people are angry, people are trying to cope and yet you sit on a high horse, ignore the lack of responsibility that these bastards exhibit and admonish people that if it weren’t for our great and mighty corporate bankers, we’d all be pig fodder. please.

[drunkle]

golfgal:

i’m merely calling you out on your condescending attitude. “you should Google Great Depression”, “be careful what you wish for” and “its a naive to believe that only the rich bastards will suffer”.

nobody knows what to do, people are angry, people are trying to cope and yet you sit on a high horse, ignore the lack of responsibility that these bastards exhibit and admonish people that if it weren’t for our great and mighty corporate bankers, we’d all be pig fodder. please.

[drunkle]

golfgal:

i’m merely calling you out on your condescending attitude. “you should Google Great Depression”, “be careful what you wish for” and “its a naive to believe that only the rich bastards will suffer”.

nobody knows what to do, people are angry, people are trying to cope and yet you sit on a high horse, ignore the lack of responsibility that these bastards exhibit and admonish people that if it weren’t for our great and mighty corporate bankers, we’d all be pig fodder. please.

[zzz]

drunkle- getting tired of you suggesting that I don’t support trading in the market, shorting, etc or that I even know how to fix this problem. I don’t know, I just point out what happened historically and perhaps why the Fed stepping in isn’t so wrong and why there have been debates on this topic – and why there will be no magic bullet. Its called presenting a point of view, an opinion. I don’t have a magic ball, I have no clue what will happen. I do however understand how the i-banks and commercial banks have interdependencies and valuing derivatives is a complex imperfect arena. Its just not as simple as saying damn those greedy bastards and hope they all suffer from their firms collapsing….

[zzz]

drunkle- getting tired of you suggesting that I don’t support trading in the market, shorting, etc or that I even know how to fix this problem. I don’t know, I just point out what happened historically and perhaps why the Fed stepping in isn’t so wrong and why there have been debates on this topic – and why there will be no magic bullet. Its called presenting a point of view, an opinion. I don’t have a magic ball, I have no clue what will happen. I do however understand how the i-banks and commercial banks have interdependencies and valuing derivatives is a complex imperfect arena. Its just not as simple as saying damn those greedy bastards and hope they all suffer from their firms collapsing….

[zzz]

drunkle- getting tired of you suggesting that I don’t support trading in the market, shorting, etc or that I even know how to fix this problem. I don’t know, I just point out what happened historically and perhaps why the Fed stepping in isn’t so wrong and why there have been debates on this topic – and why there will be no magic bullet. Its called presenting a point of view, an opinion. I don’t have a magic ball, I have no clue what will happen. I do however understand how the i-banks and commercial banks have interdependencies and valuing derivatives is a complex imperfect arena. Its just not as simple as saying damn those greedy bastards and hope they all suffer from their firms collapsing….

[zzz]

drunkle- getting tired of you suggesting that I don’t support trading in the market, shorting, etc or that I even know how to fix this problem. I don’t know, I just point out what happened historically and perhaps why the Fed stepping in isn’t so wrong and why there have been debates on this topic – and why there will be no magic bullet. Its called presenting a point of view, an opinion. I don’t have a magic ball, I have no clue what will happen. I do however understand how the i-banks and commercial banks have interdependencies and valuing derivatives is a complex imperfect arena. Its just not as simple as saying damn those greedy bastards and hope they all suffer from their firms collapsing….

[drunkle]

seems silly to think that just because you, bernanke, anyone else has studied the great depression that you automatically know how to prevent it.

700 trillion dollars in derivatives are going to be stoppered by fed?

http://www.marketwatch.com/news/story/derivatives-new-ticking-time-bomb/story.aspx?guid=%7BB9E54A5D-4796-4D0D-AC9E-D9124B59D436%7D

the fed that allowed this to happen is now to be trusted with our salvation?

i guess some people are just still in denial.

[drunkle]

seems silly to think that just because you, bernanke, anyone else has studied the great depression that you automatically know how to prevent it.

700 trillion dollars in derivatives are going to be stoppered by fed?

http://www.marketwatch.com/news/story/derivatives-new-ticking-time-bomb/story.aspx?guid=%7BB9E54A5D-4796-4D0D-AC9E-D9124B59D436%7D

the fed that allowed this to happen is now to be trusted with our salvation?

i guess some people are just still in denial.

[drunkle]

seems silly to think that just because you, bernanke, anyone else has studied the great depression that you automatically know how to prevent it.

700 trillion dollars in derivatives are going to be stoppered by fed?

http://www.marketwatch.com/news/story/derivatives-new-ticking-time-bomb/story.aspx?guid=%7BB9E54A5D-4796-4D0D-AC9E-D9124B59D436%7D

the fed that allowed this to happen is now to be trusted with our salvation?

i guess some people are just still in denial.

[drunkle]

seems silly to think that just because you, bernanke, anyone else has studied the great depression that you automatically know how to prevent it.

700 trillion dollars in derivatives are going to be stoppered by fed?

http://www.marketwatch.com/news/story/derivatives-new-ticking-time-bomb/story.aspx?guid=%7BB9E54A5D-4796-4D0D-AC9E-D9124B59D436%7D

the fed that allowed this to happen is now to be trusted with our salvation?

i guess some people are just still in denial.

[zzz]

Ex-SD – to your comment about staying out of private business – this is our entire banking system at risk – not a little private business that sink or swim, won’t have any ripple down effects. Did you read about the trillions of dollars in “counterparty” exposure for Bear – do you know what this means and that this is not limited to Bear?

Sure it sucks now, and sure we’re eating shit in inflation, and let me cry about not wanting to take my $$ to Europe right now – all that will seem like cryin over spilt milk if our banking system fails. I suggest you too read about the Great Depression.

[zzz]

Ex-SD – to your comment about staying out of private business – this is our entire banking system at risk – not a little private business that sink or swim, won’t have any ripple down effects. Did you read about the trillions of dollars in “counterparty” exposure for Bear – do you know what this means and that this is not limited to Bear?

Sure it sucks now, and sure we’re eating shit in inflation, and let me cry about not wanting to take my $$ to Europe right now – all that will seem like cryin over spilt milk if our banking system fails. I suggest you too read about the Great Depression.

[zzz]

Ex-SD – to your comment about staying out of private business – this is our entire banking system at risk – not a little private business that sink or swim, won’t have any ripple down effects. Did you read about the trillions of dollars in “counterparty” exposure for Bear – do you know what this means and that this is not limited to Bear?

Sure it sucks now, and sure we’re eating shit in inflation, and let me cry about not wanting to take my $$ to Europe right now – all that will seem like cryin over spilt milk if our banking system fails. I suggest you too read about the Great Depression.

[zzz]

Ex-SD – to your comment about staying out of private business – this is our entire banking system at risk – not a little private business that sink or swim, won’t have any ripple down effects. Did you read about the trillions of dollars in “counterparty” exposure for Bear – do you know what this means and that this is not limited to Bear?

Sure it sucks now, and sure we’re eating shit in inflation, and let me cry about not wanting to take my $$ to Europe right now – all that will seem like cryin over spilt milk if our banking system fails. I suggest you too read about the Great Depression.

[Ex-SD]

The management technique that the government is using to attack this problem is called “situational management ethics” and it’s just plain WRONG. You can’t effectively manage any company successively using situational ethics and the government is no different.

Golfgal: We’re already eating shit with the government printing funny money and devaluing our currency. I don’t give a rat’s ass if the Wall Street boys and the big investors take a huge haircut because I’m getting mine already. They made trillions from this fantasy investment scheme and now they need a whack in the head with a 2X4. The country will survive without government intervention but there needs to be some pain and some consequences. At this point, the economy is out of the control of anyone to quick fix it.

[Ex-SD]

The management technique that the government is using to attack this problem is called “situational management ethics” and it’s just plain WRONG. You can’t effectively manage any company successively using situational ethics and the government is no different.

Golfgal: We’re already eating shit with the government printing funny money and devaluing our currency. I don’t give a rat’s ass if the Wall Street boys and the big investors take a huge haircut because I’m getting mine already. They made trillions from this fantasy investment scheme and now they need a whack in the head with a 2X4. The country will survive without government intervention but there needs to be some pain and some consequences. At this point, the economy is out of the control of anyone to quick fix it.

[Ex-SD]

The management technique that the government is using to attack this problem is called “situational management ethics” and it’s just plain WRONG. You can’t effectively manage any company successively using situational ethics and the government is no different.

Golfgal: We’re already eating shit with the government printing funny money and devaluing our currency. I don’t give a rat’s ass if the Wall Street boys and the big investors take a huge haircut because I’m getting mine already. They made trillions from this fantasy investment scheme and now they need a whack in the head with a 2X4. The country will survive without government intervention but there needs to be some pain and some consequences. At this point, the economy is out of the control of anyone to quick fix it.

[Ex-SD]

The management technique that the government is using to attack this problem is called “situational management ethics” and it’s just plain WRONG. You can’t effectively manage any company successively using situational ethics and the government is no different.

Golfgal: We’re already eating shit with the government printing funny money and devaluing our currency. I don’t give a rat’s ass if the Wall Street boys and the big investors take a huge haircut because I’m getting mine already. They made trillions from this fantasy investment scheme and now they need a whack in the head with a 2X4. The country will survive without government intervention but there needs to be some pain and some consequences. At this point, the economy is out of the control of anyone to quick fix it.

[svelte]

I agree with you 100% golf gal. The action taken by the govt this week is the lesser of two evils.

We’re at this juncture, now we have to deal with it. The actions may not work perfectly, but it certainly beats everyone sitting on their hands watching ala 1929.

[svelte]

I agree with you 100% golf gal. The action taken by the govt this week is the lesser of two evils.

We’re at this juncture, now we have to deal with it. The actions may not work perfectly, but it certainly beats everyone sitting on their hands watching ala 1929.

[svelte]

I agree with you 100% golf gal. The action taken by the govt this week is the lesser of two evils.

We’re at this juncture, now we have to deal with it. The actions may not work perfectly, but it certainly beats everyone sitting on their hands watching ala 1929.

[svelte]

I agree with you 100% golf gal. The action taken by the govt this week is the lesser of two evils.

We’re at this juncture, now we have to deal with it. The actions may not work perfectly, but it certainly beats everyone sitting on their hands watching ala 1929.

[svelte]

I agree with you 100% golf gal. The action taken by the govt this week is the lesser of two evils.

We’re at this juncture, now we have to deal with it. The actions may not work perfectly, but it certainly beats everyone sitting on their hands watching ala 1929.

[zzz]

donaldduckmoore – you should Google Great Depression and read about how many of those same issues facing that period of time, debt, contraction of money, are facing our economy and the Fed now. If the Fed did nothing and a massive banking failure occurred, resulting in our own Great Depression, would we blame the Fed? I’m not advocating Fed involvement or simply allowing the “free market” to exist as is. I have no debt so personally didn’t contribute to this nightmare, but since this mess was created – and it must be unwound, I’d prefer it happen without bringing the banking system to its knees.

I think its a naive to believe that only the rich bastards will suffer if Bear and the rest of Wall st, mortgage brokers etc eat shit if a bank fails. We too will be eating shit along with them. Shit rolls downhill.

[zzz]

donaldduckmoore – you should Google Great Depression and read about how many of those same issues facing that period of time, debt, contraction of money, are facing our economy and the Fed now. If the Fed did nothing and a massive banking failure occurred, resulting in our own Great Depression, would we blame the Fed? I’m not advocating Fed involvement or simply allowing the “free market” to exist as is. I have no debt so personally didn’t contribute to this nightmare, but since this mess was created – and it must be unwound, I’d prefer it happen without bringing the banking system to its knees.

I think its a naive to believe that only the rich bastards will suffer if Bear and the rest of Wall st, mortgage brokers etc eat shit if a bank fails. We too will be eating shit along with them. Shit rolls downhill.

[zzz]

donaldduckmoore – you should Google Great Depression and read about how many of those same issues facing that period of time, debt, contraction of money, are facing our economy and the Fed now. If the Fed did nothing and a massive banking failure occurred, resulting in our own Great Depression, would we blame the Fed? I’m not advocating Fed involvement or simply allowing the “free market” to exist as is. I have no debt so personally didn’t contribute to this nightmare, but since this mess was created – and it must be unwound, I’d prefer it happen without bringing the banking system to its knees.

I think its a naive to believe that only the rich bastards will suffer if Bear and the rest of Wall st, mortgage brokers etc eat shit if a bank fails. We too will be eating shit along with them. Shit rolls downhill.

[zzz]

donaldduckmoore – you should Google Great Depression and read about how many of those same issues facing that period of time, debt, contraction of money, are facing our economy and the Fed now. If the Fed did nothing and a massive banking failure occurred, resulting in our own Great Depression, would we blame the Fed? I’m not advocating Fed involvement or simply allowing the “free market” to exist as is. I have no debt so personally didn’t contribute to this nightmare, but since this mess was created – and it must be unwound, I’d prefer it happen without bringing the banking system to its knees.

I think its a naive to believe that only the rich bastards will suffer if Bear and the rest of Wall st, mortgage brokers etc eat shit if a bank fails. We too will be eating shit along with them. Shit rolls downhill.

[donaldduckmoore]

I am afraid that continuing throwing money to save this bank and others will eventually bleed the reserve for something really emergency in the future. Besides, if the fed will not be able to save it, it tells others that this is all the fed and the country have to save the world. By then, we will have more confidence problem. This is very risky.

[donaldduckmoore]

I am afraid that continuing throwing money to save this bank and others will eventually bleed the reserve for something really emergency in the future. Besides, if the fed will not be able to save it, it tells others that this is all the fed and the country have to save the world. By then, we will have more confidence problem. This is very risky.

[donaldduckmoore]

I am afraid that continuing throwing money to save this bank and others will eventually bleed the reserve for something really emergency in the future. Besides, if the fed will not be able to save it, it tells others that this is all the fed and the country have to save the world. By then, we will have more confidence problem. This is very risky.

[donaldduckmoore]

I am afraid that continuing throwing money to save this bank and others will eventually bleed the reserve for something really emergency in the future. Besides, if the fed will not be able to save it, it tells others that this is all the fed and the country have to save the world. By then, we will have more confidence problem. This is very risky.

[Ex-SD]

It sends the wrong message to Wall Street and the general public. The government should stay out of the affairs of private business’ and let them sink or swim.

[Ex-SD]

It sends the wrong message to Wall Street and the general public. The government should stay out of the affairs of private business’ and let them sink or swim.

[Ex-SD]

It sends the wrong message to Wall Street and the general public. The government should stay out of the affairs of private business’ and let them sink or swim.

[Ex-SD]

It sends the wrong message to Wall Street and the general public. The government should stay out of the affairs of private business’ and let them sink or swim.

[JWM in SD]

JWM in SD

REad GolfGal’s posts in the other BSC threads. Although I find it very distasteful as well, it maybe that it was better alternative in the short term. In either case, it sets an extremely dangerous precedent for the greater economy.

[JWM in SD]

JWM in SD

REad GolfGal’s posts in the other BSC threads. Although I find it very distasteful as well, it maybe that it was better alternative in the short term. In either case, it sets an extremely dangerous precedent for the greater economy.

[JWM in SD]

JWM in SD

REad GolfGal’s posts in the other BSC threads. Although I find it very distasteful as well, it maybe that it was better alternative in the short term. In either case, it sets an extremely dangerous precedent for the greater economy.

[JWM in SD]

JWM in SD

REad GolfGal’s posts in the other BSC threads. Although I find it very distasteful as well, it maybe that it was better alternative in the short term. In either case, it sets an extremely dangerous precedent for the greater economy.

[Author]

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