meazza

For sure. The economic rent is just too high.

Of course if it were a bailout for the rich, the CEO's of these companies would still have their jobs, the bonuses would be huge in December and investment banking wouldn't basically cease to exist as a single entity. What people don't realize is that this is simply a lending hand for firms to sustain their cash flows so they don't go belly up.

Maybe just for Goldman... They're at a bargain and probably have a huge upside value...

Because they're not levered 47 to 1?

How did these institutions do the wrong thing?

Maybe he was holding the sep 7.50 puts

I agree. We land on palm island, enjoy the scenery... and then end up living there.

I know, just the other day one of our prime brokers called us and asked us to short about 100 Million of Goldman Sachs. Obviously we asked for no capital or margin. Very simplistic...

I believe DC Tom and bills_fan already said this in a few other threads.

So i won't get that 100 million golden parachute i was promised

Realistically... probably what happened last week times 5. You see how quickly the market reacts ot bad or good news?

To reflect the true value of the firm... As a shareholder, would you like to know what someone paid for an asset 20 years ago or what it's worth today?

In a stable market, it helps manage pricing? Remember these are traders who keep these securities on their books. They all function with bonuses based on their P&L. Brokers spend a lot of money to have analysts monitoring the P&L of their traders so their results & bonuses reflect their returns.

http://www.ft.com/cms/s/0/d9d096c4-88ce-11...00779fd18c.html No big deal

It's a big deal to everyone. It's a big deal to the shareholders of Lehman, Bear, and the Mac's who bought shares because of the security of a bank and a GSE and some positive long term returns only to find out their shares are now worth zero. It's a big deal to the counterparties on all the bonds and swaps. In all honesty I think the economy is already at a terrible point. A big chunk of the job losses is from middle management who are in the higher income bracket. Imagine all the lost tax revenues simply due to the loss of jobs on WS... This will, like GG already said prevent it from spiraling into a global recession.

She wants Richard Fuld's head on a plate...

How are they showering money? They're loaning the money to who needs it and putting heavy restrictions on those that participate.

Question, will the Bills inevitable perfect season cause the economy to crash and will this be the Democrats fault??

Damn you and your jinxing.

Hence never..

He'd only approve of it if Obama said it.

Do you have any better solution? Do you see how the market reacts everytime something is said? It's not an easy time to be making these decisions but the impact of letting these institutions fail is not pretty for anybody...

The thing is, August 2007, this debt was considered liquid. At the end of the day, most of it still would be in a normal world... That's finance for you.

At this point, it could easily become a game to some of these massive hedge funds who could make a bet against Goldman or Morgan Stanley which would absolutely kill them. I think it is necessary for the short term. For the long term, someone will write a book explaining how they knew that the markets were this unstable.

There was a point where the GSE's were given the right to make riskier investments (which caused the crisis now). If the Fed starts doing that and 50 years down the line, they get into a liquidity crisis, who will bail them out?