tag:blogger.com,1999:blog-2335748440449035592.post1250954731382549329..comments2008-03-17T00:06:01.594-04:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-2335748440449035592.post-82244969288526911202008-03-17T00:06:00.000-04:002008-03-17T00:06:00.000-04:00i read this article earlier today and i couldn't believe it. at first i thought it was just some sort of offering exclusive to JPM. i didn't think BSC would now publicly trade at $2. this thing went from about $57 to $2 in the blink of an eye. i'm still relatively new to the markets but i didn't think things like this could happen this fast. aren't there measures from preventing people on making a run at a bank like this. this is insane, i'm flabbergasted.T-Raderhttp://www.blogger.com/profile/16892169651369153159noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-47100848286880716302008-03-16T22:20:00.000-04:002008-03-16T22:20:00.000-04:00Most tech stocks have still not recovered<BR/><BR/>In fact other than Apple, most i.e. Cisco and Oracle never even got back 1/2 of what they lost and those are the 'quality names' not to mention the junk<BR/><BR/>You need a whole new generation of suckers - trust me in 20 years we will have another epic stupidity like this. As long as the compensation system is built on having a 2-4 year run of outsized gains in return for epic payoffs that set you and your children, grandchildren., and great grandchildren for generations you only need to pull the wool over people's eyes for a short period of time (under half a decade) When it all implodes you will be "fired" with huge compensation package and claim you never saw it coming. Thats our system and why we roll from bubble to bubble. And the Fed helps it along the way past 15 years with their massive easy money schemes. As they are doing again. Again, we will have a new bubble somewhere which will burst from the birth today. If its commodities its going to wreck even more havoc than this current mess because that impacts people's ability to eat for example.. (minor thing). Each bubble grows in stature. Tech bubble hits narrow investor class mostly in US. Real estate bubble hits mostly Americans but collateral damage in Europe. Commodity bubble creates massive suffering the world over. <BR/><BR/>Let's just hope we dont see crude $150-$175 and corn $8, wheat $30+, etc. I think the dollar can only go so much lower before it simply must bounce. You know Paulson calls ECB every day begging for them to cut rates... <BR/><BR/>Anyhow, the financial innovation with unregulated financial systems and 'secrative' hedge funds which leverage 30:1 since they can do whatever they want since so many ultra rich have money to burn and feed into these hedge funds - is creating a wonderful system. After its all said and done these sovereign wealth funds are going to pick among the smoldering assets and own much of the country. <BR/><BR/>But hey until then let's cheer Fed cuts. Because "Fed cuts solve everything". Certainly a mantra I've been cheering for 7 months now. (cough)TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-91856711007079848492008-03-16T22:09:00.000-04:002008-03-16T22:09:00.000-04:00This all financial mess has created such a damage to the sentiment of buyers that it would take years before anyone tries to chase prices on real estate again unless we get a sudden high demand for houses by means of lot of people miraculously flooding into this country from sky or something that need a place to live in and has money to buy the houses !! <BR/><BR/>I dont know what I am writing.. :)..Pankajhttp://www.blogger.com/profile/13478816568647309907noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-44623394280545866542008-03-16T21:23:00.000-04:002008-03-16T21:23:00.000-04:00The problem is buying a financial right now is like buying a company in the 70s/80s who used to make asbestos. You have years of potential litigation and exposure. So when a BAC buys Countrywide or JPM buys Bear you have the "asbestos" that comes along with a core business. Hence the prices are not surprising to some degree. That said I'd expected at least double digits for Bear. It shows the world what other companies place on their hocus pocus. Lehman is very similar, with huge commercial real estate exposure. We'll see if they go next. But the Fed is now being proactive and letting the investment banks offload their junk direct to the Fed - continuing to kick the can down the road. I only wonder at what point these banks have to take their losses/medicine. Unless people are under the illusion that home prices (the underlying asset in much of this mess) recovers in 6 months, these loans have to be indefinite for this strategy to work in the long run. The only "solution" is for the Fed to buy the loans direct... which I've been saying for a long time will be the end game.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-11389830771946493952008-03-16T20:54:00.000-04:002008-03-16T20:54:00.000-04:00Who knows...the Nikkei is down 3% right now, so they are taking it as bad news. I'm waiting to hear how squawk can spin this as a good thing in the morning. I can see it now..."BSC going under means we're finally through the bad times."<BR/><BR/>As a funny side note. I remember when Cramer recommended BSC when it was at $80. Said it was oversold in a baseless panic about mortgages rofl...Michaelhttp://www.blogger.com/profile/14603027333434481007noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-53251637377380034122008-03-16T20:05:00.000-04:002008-03-16T20:05:00.000-04:00$2?!! Holy s***! I wonder how the market is going to react tomorrow.Bluedoghttp://www.blogger.com/profile/13620622716492473197noreply@blogger.com