Lehman

[Geronimo]

Originally posted by DanS


That giant pumping sound is the Fed flooding the system with cash.

My guess is that after a short pop for the stock markets, it will just go to pump up the gold and oil prices. Stock prices need to fall.

why do stock prices need to fall? Where would we expect something like the Dow to be right now if not for whatever is making them overvalued?

[DanS]

Bear markets routinely run 35% off the highs of the market. We're only 25% off the highs in this cycle.

A stock market that is 25% off the highs is not consistent with a credit situation that is a once in several generations event. T-bills going to 0.01% hasn't happened since the Germans bombed Pearl Harbor.

The Fed is trying to prevent a crash, but in the meantime is holding up the market from doing what it should be doing -- settling at a lower value.

[Colonâ„¢]

Originally posted by DanS
T-bills going to 0.01% hasn't happened since the Germans bombed Pearl Harbor.

And you even went DanSing.

[Aeson]

Damn Germans

[Colonâ„¢]

So is Morgan Stanley moving in with Wachovia or with CIC? Wall Street sure knows how to keep the thriller going.

[BeBMan]

Originally posted by DanS
(...) since the Germans bombed Pearl Harbor.

[Kidlicious]

Originally posted by Kuciwalker
Lehman had a booth at the job fair today

Look for people to go there and then sell stuff to them when they are walking away.

[Colonâ„¢]

His [Dick Fuld of Lehman Brothers] stock and options once worth $1.2 billion became almost worthless in the firm's Sept. 15 bankruptcy.

Another loser is Maurice ``Hank'' Greenberg, who ran American International Group Inc. for 38 years and saw the AIG stake he controls decline by $5.9 billion this month, to $622.9 million yesterday from $6.53 billion at the end of August.

http://bloomberg.com/apps/news?pid=20601109&sid=aWX6lKFjxrEQ&refer=home

[Kuciwalker]

Originally posted by DanS
T-bills going to 0.01% hasn't happened since the Germans bombed Pearl Harbor.

[Aeson]

Another loser is Maurice ``Hank'' Greenberg, who ran American International Group Inc. for 38 years and saw the AIG stake he controls decline by $5.9 billion this month, to $622.9 million yesterday from $6.53 billion at the end of August.

That's very impressive.

[Wezil]

DanS is clearly a John Belushi fan:

[Colonâ„¢]

Quite the rally.

Couldn't help noticing that banning naked short-sale did squat to support Morgan Stanley's stock (nor to particularly support Goldman's Sach's). Could the SEC please stop this nonsense now? It's actually more infuriating than the bailouts because its so friggin pointless and misguided.

[DanS]

Wow, Putnam closes a $15 billion money market fund after a run on the fund. It didn't even break the buck. Business Week describes it as an unprecedented run on a money market fund...

http://www.businessweek.com/ap/financialnews/D9399LF82.htm

Meanwhile, apparently there was a rumor that went around that there would be a Resolution Trust Corporation-type entity for the mortgage-backed securities that all of these banks are holding. The stock market closes up 4%, even though the shortest-term debt markets are basically shut.

Yeh, that rally won't last long.

Edit: Well, the 3-month t-bill is earning a whopping 0.06%. I guess that is some movement in the market...

[DanS]

Originally posted by Colonâ„¢
Quite the rally.

Couldn't help noticing that banning naked short-sale did squat to support Morgan Stanley's stock (nor to particularly support Goldman's Sach's). Could the SEC please stop this nonsense now? It's actually more infuriating than the bailouts because its so friggin pointless and misguided.

It probably makes little difference either way. Just like the uptick rule that everybody drones on and on about.

So I guess I can't get all bent out of shape about it.

[Colonâ„¢]

Oh god, now the UK is also considering a ban on (naked?) short-selling? Morgan Stanley was down 42% at one point and Goldman Sac 18%, in spite of such a ban. I really didn't expect such crap from financial regulators.