Posted on 09/16/2008 10:44:17 AM PDT by edcoil
Since unconfirmed reports have to be placed in Vanity, I will leave it up to MODS and posters as to this classification.
I was told Lehman was not bailout like Bears because most of Lehman's portifilo was in Europe not American investments and the Fed's knew Americans would not stand for bailing out Europe.
Any of our fund managers or more experienced folks know? I was told this comment was initially on the web by our Fed Chairman however was pulled later.
I work as a portfolio manager for a hedge fund. Basically, what I hear is that, after bailing out the root cause of our problems—Fannie and Freddie—the Feds felt they had done plenty enough. The big players in the industry were not willing to lend ot each other and solve their own problems, so the FEds told them essentially, “Take responsibility for your own screw ups or go out of business. Your choice.”
I heard that Lehman was down $400 billion.
None of these greedy scum should be bailed out. They were unwilling to help those that owe them and just like in Jesus’ parable, they should reap what they have sewn.
“Take responsibility for your own screw ups or go out of business. Your choice.”
Wish they’d say that to everyone. I am amazed that companies like Lehman Bros and Merril Lynch allowed themselves to be so exposed to a major credit/real estate market meltdown.
I read a quote attributed to SecTreas Paulson that went like this:
“Since none of you (referring to the various banks who wanted government backstops to bid on Lehman) seem to think it worth paying up to buy Lehman on your own, we don’t see the value in it either.”
Point, set and match. I’ll have to give Paulson some credit for finally putting the issue in terms that WallSt understands, rather than the academic analysis used by Bernanke and Greenspan on why/why not a company should be backstopped.
There are too many on the edge now to even suggest a bailout for any new companies, and some of them need to fail.
GM and Ford are looking for handouts.
Washington Mutual and AIG are in trouble.
Lehman Brothers' collapse does not directly affect the average American.
A homeowner in Kansas doesn't deposit his paycheck in his local Lehman branch.
But he may well be an AIG policy holder with his savings at Washington Mutual.
No credit check,no job,no down payment and a ballon payment
of 3 to 4 thousand a month.Somehow this was going to be a problem down the line!
In future, if you have no idea what you're talking about, it might be wisest to shut up.
I'll reiterate, since you don't seem overly bright:
In future, if you have no idea what you're talking about, it might be wisest to shut up.
Maybe these banks should stop loaning $$ to people who can't pay it back.
How come the dollar isn't tanking?? Oh yeah these pirates on Wall Street need a currency for their ill gotten booty.
McCain and Obama say we need more regulation of wall street. How about we try to enforce existing laws first??
You think we would of learned from the Enron debacle.
Let’s see, they made bad loans and then sold these loans off and bought other peoples junk in the process and now, they want to be bailed out. What did I miss?
Geez, guys. Freddie Mac lost $1.3 billion in loan losses for the first 6 months of 2008. They have $35 billion in core capital. They haven’t received a cent in bailouts and won’t if they housing market stabilizes soon. So, while I don’t like F&F, you have to get your facts correct.
Lehman Bros, I agree with letting them die.
AIG. Treasury will step in since the systemic risk is REALLY LIKELY. That is, collapse of the financial system.
I am against bailouts, but if we don’t do something with AIG, returning to 1935 seems like a stiff price.
I’ll admit I don’t fully understand the derivatives aspect to this story, but the basic story is loans were give to people who couldn’t afford them. Now the loan cannot be repaid, but the banks still own the underlying asset- the home- yes probably overvalued by 20% or so, while these loans are marked down as worthless. Eventually there must be big write-ups coming down the pike, and firms buying this stuff on the cheap will profit.
Is this the story?
At $639 billion, Lehman’s is the largest bankruptcy filing in U.S. history—easily surpassing the Enron and WorldCom collapses combined. It also places the jobs of 26,000 employees at the storied firm in immediate jeopardy.
Lehman Brothers is not a residential mortgage lender.
and then sold these loans off
Wrong.
and bought other peoples junk in the process
What prcoess is that, O wise one? Can you explain? And what is the junk to which you are referring?
and now, they want to be bailed out
Most failing business would like a loan - GM will be receiving a $25B government loan this year. But people prefer to describe bankers as greedy, not union bosses.
What did I miss?
Clearly every session of Finance 101.
AIG might get a bailout or part bail-out so it still goes back to did Lehman not get bailed out due to its European business or what did not the EEC bail out Lehman.
They were just looking for a bridge loan.
Forget about forgiveness. Jesus was into torturing greedy scum, apparently.
I’ve said this on other threads and I will say it again here. I believe part of this can be laid right at Dick Fuld’s feet. He was an arrogant, ham fisted jerk and all of Wall Street knew it. Nobody felt so inclined to step up and help Dick down from the ledge he put himself on. I think most of Wall Street knew he had several chances to make a deal and his arrogance prevented him from doing that. As I understand it, as the largest shareholder, he has lost $500MM in assets this past year. You gotta love that. Payback? Oh yeah, she’s a real b*tch.
Eventually there will be write-ups on a number of the mortgage securities. Problem really was in the derivatives built off of the underlying mortgage securities, that banks owned in huge size under the asinine assumption that homeowner defaults would not be correlated and that interest rates would remain at all time lows.
Question is whether you can afford to sit with them or not. There are pressures on people who manage money to make moderate profits right now, not colossal profits 3 years from now.
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