meazza

You ever read this book? http://www.amazon.com/Demon-Our-Own-Design...n/dp/0471227277

http://www.amazon.com/Demon-Our-Own-Design...n/dp/0471227277 Demon of our own design by Richard Bookstaber

Yeah baby!!!!!

With a goalscorer that has 56 goals and 100 points yet not good enough to be the MVP because his team isn't in the playoffs.

Actually you're right since I work in a back office that handles corporate actions, Bloomberg shows that the effective date is not for a while. Basically Bear Sterns is still up and running but i could just imagine how much of the stock loan positions are being unwound as we speak.

Have the obligations already made their way on the balance sheet as the merger hasn't been deemed effective as of yet?

So I'm guessing you saw that Zeitgeist documentary?

It's all about Hitler.

That was the whole deal...

A real philosopher you are

Why? I'm hard headed?

The former I may not be new but it never ceases to shock me how minds can never be changed.

Does everything have to be extreme. Sure a free market capitalist system is preferred over a communist system but can anything really function without just a little bit of help at the right time? Those responsible and those not responsible for this credit crunch have felt the burn of this crisis in the last 9 months anyway.

I didn`t address any of his post except for how I feel it is over dramatic. The financial system is not perfect, and each crisis has shown us that. Obviously I`m experiencing my first real financial crisis being fresh out of school and am trying to learn as much as possible from this. When there`s another liquidity/credit crunch, I`ll let you know how i feel

For sure... but that's if you're able to spot the bargain. I mean the example I was giving was of someone who just simply trusted their banker.

A tad dramatic aren't we? But maybe a beer or 10 will help calm you down

And the fed makes another move. http://online.wsj.com/article/SB1205862243...us_inside_today

Why? Do a good job for a while and then take 100 Million severance package when you get fired as per the ex-ceo of Merril Lynch (can't remember his name).

to we're looking for a better offer and the price jumped 67% on Tuesday due to speculation

Maybe. I enjoy analyzing this though. It's what I'd eventually like to do for a living.

The average person picks up a newspaper and has the numbers flashed in their face over and over. They don't necessarily understand what most of it means, but they see the big numbers with negatives next to them and they start panicking. A close friend of mine just told me that he bought mutual funds. My advice was to stay away unless you knew 100% what you were getting into. He told me the salesman told him that the funds he was buying were affected by the US market. How in God's name can you find a fund that doesn't have some sort of link to the US market mess that is going on at the moment?

Probably very few, but the reaction to the market actually creates more of a recession than anything. But regardless, most people just look at the main headline and don't understand anything. It only takes a + next to the dow to make them thing all is good again.

When the subprime fallout was announced back in August, every part of the world was hit. For example, 5 out of 6 of Canada's major chartered banks were hit due to holding asset backed commercial paper tied to loans linked to the US. This on its own caused the ABCP market to be frozen at a value of about 30 B. Now this did affect other people outside of the main management of each bank including the bank i work for (brokerage arm) as i know a lot of people who lost their that don't even know what commercial paper or subprime loans are. Now considering the bank I work for employs close to 20 000 people, and it has affected us in a big way without even being a company that deals directly with subprime loans, imagine another major crash as GG mentioned before. In the end though, these loans will not be recoverable, Bear Sterns will still be sold for scraps but at least it is done gradually to keep investors from totally going into a panic. There is almost so much the central bank can do.

JPM states that one big reason they decided to make the move is to take over Bear Sterns prime brokerage services but wouldn't these clients just leave and go on to a more secure investment bank?

It's nothing new. A similar thing happened to one of Carlyle groups funds. Not enough cash to cover short term obligations as counterparties demanded more collateral.