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Bear Naked Lenders
WSJ ^
| 03/18/08
Posted on 03/17/2008 10:35:01 PM PDT by TigerLikesRooster
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To: TigerLikesRooster; Uncle Ike; RSmithOpt; jiggyboy; 2banana; Travis McGee; OwenKellogg; 31R1O; ...
2
posted on
03/17/2008 10:35:30 PM PDT
by
TigerLikesRooster
(kim jong-il, chia head, ppogri, In Grim Reaper we trust)
To: TigerLikesRooster
What is the old saying? You won’t see who is naked until the tide goes out? Well, I say its heading toward old tide soon.
To: TigerLikesRooster
If I knew the Fed would give me $250 million to buy Bear, I’d have applied for the deal!
4
posted on
03/17/2008 10:44:02 PM PDT
by
2ndDivisionVet
(http://www.fourfriedchickensandacoke.blogspot.com)
To: 2ndDivisionVet
Then skim $5 million and run. Don't be greedy and run off with the entire $250 million.:-)
5
posted on
03/17/2008 10:48:35 PM PDT
by
TigerLikesRooster
(kim jong-il, chia head, ppogri, In Grim Reaper we trust)
To: TigerLikesRooster
Anyone in need of some office space in mid-town Manhattan? 1,200,000 sq feet of it just came on the market.
6
posted on
03/17/2008 10:50:34 PM PDT
by
Proud_USA_Republican
(We're going to take things away from you on behalf of the common good. - Hillary Clinton)
To: Proud_USA_Republican
It looks as though it would be too cold to sleep there at night. I pass.:-)
7
posted on
03/17/2008 10:52:56 PM PDT
by
TigerLikesRooster
(kim jong-il, chia head, ppogri, In Grim Reaper we trust)
To: Proud_USA_Republican
It seems ridiculous that JPMorgan will get their hands on his building for a fraction of what it’s worth.
Corporate Welfare.
8
posted on
03/17/2008 11:00:56 PM PDT
by
RegT
To: 2ndDivisionVet
Yeah well, the estimated legal fees alone to handle the whole mess, clock it at $6 billion.
Still Morgan got a deal. Their stock is up almost $10 billion on the news - the market's best guess as to what Bear will really be worth, shorn of its financial distress.
9
posted on
03/17/2008 11:48:34 PM PDT
by
JasonC
To: RegT
The building? Give me a break. They are assuming $385 billion in debts. Bear had $395 billion in assets as of the end of last year. The risk involved is at least $30 billion on the asset side off that gigantic see-saw might be only worth $20 billion.
10
posted on
03/17/2008 11:51:01 PM PDT
by
JasonC
To: TigerLikesRooster
Bear shareholders will essentially be wiped out in this close-out sale, Yeah, but the executive suite doesn't have to give back the billions in "performance bonuses" that they pocketed. They would have had to if bankruptcy were declared.
11
posted on
03/18/2008 12:31:51 AM PDT
by
glorgau
To: glorgau
"the billions in "performance bonuses""Usually paid in company stock not immediately vested.
yitbos
12
posted on
03/18/2008 12:59:54 AM PDT
by
bruinbirdman
("Those who control language control minds." - Ayn Rand)
To: JasonC
The risk involved is at least $30 billion on the asset side off that gigantic see-saw might be only worth $20 billion. So do the math:$20 billion downside $30 billion Fed backstop guarantee = $10 billion uptick yesterday for JPM.
I believe with aggressive work they'll be able to do better with the chaff than Bear did so their gain might be even larger.
If not and it's larger than the $30 billion then the Bear will eat them in about a month. (Or Bailout Ben will show up with another bag of our money)
To: TigerLikesRooster
Its still too early to say what Cayne and the other insiders lost yet. I’ll bet there was some payment of some kind in the agreement. Even if they lost everything Cayne and company had been milking the company for years. Cayne if I remember correctly sold some stock last year while it was up.
14
posted on
03/18/2008 2:35:23 AM PDT
by
Racer1
To: TigerLikesRooster
Give it a year or two and JP Morgan Chase will realize a huge gain on the orderly liquidation of thos mortgage backed securities. The average life of a residential mortgage is still under ten years with home sales and refinances paying out most of this paper.
15
posted on
03/18/2008 3:41:11 AM PDT
by
Jimmy Valentine
(DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
To: ninonitti
My guess is that JPM/Chase will come home a very big winner on this. After all, they bought a temporarily illiquid securities portfolio that is backed by performing loans (for the most part). I thinkthat over the next thre to five years they will have some big paydays.
Old J. Pierpont Morgan is smiling somewhere.
16
posted on
03/18/2008 3:45:01 AM PDT
by
Jimmy Valentine
(DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
To: ninonitti
(Or Bailout Ben will show up with another bag of our money) The Fed doesn't receive appropriations from Congress. It's the Fed itself that is on the hook.
17
posted on
03/18/2008 3:53:04 AM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: Jimmy Valentine
My guess is that JPM/Chase will come home a very big winner on this. After all, they bought a temporarily illiquid securities portfolio that is backed by performing loans (for the most part). I thinkthat over the next thre to five years they will have some big paydays. I think you're right and that means the Fed mad a good move too.
18
posted on
03/18/2008 3:56:26 AM PDT
by
Moonman62
(The issue of whether cheap labor makes America great should have been settled by the Civil War.)
To: TigerLikesRooster; All
Inflation Blues sung by B.B. King
Hey Mr. President
All your congressmen, too
You got me frustrated
And I don’t know what to do
I’m trying to make a living
I can’t save a cent
It takes all of my money
Just to eat and pay my rent
I got the blues
Got those inflation blues
You know, I’m not one
Of those high brows
I’m average Joe to you
I came up eating cornbread
Candied yams and chicken stew
Now you take that paper dollar
It’s only that in name
The way that buck has shrunk
It’s a lowdown dirty shame
That’s why I got the blues
Got those inflation blues
Mr. President
Please cut the price of sugar
I wanna make my coffee sweet
I wanna smear some butter on my bread
And I just got to have my meat
When you start rationing
You really played the game
And things are going up
And up and up and up
And my check remains the same
That’s why I got the blues
Got those inflation blues
19
posted on
03/18/2008 4:41:27 AM PDT
by
2ndDivisionVet
(http://www.fourfriedchickensandacoke.blogspot.com)
To: TigerLikesRooster
Meantime, he gets the Fed to backstop Bear's riskiest paper. We don't know the quality of that paper -- and we hope the Fed has done its due diligence -- but taxpayers are now on the hook for future losses. Straw man. Incredibly, or maybe not incredibly, they use this token amount as an excuse to lower rates more. They will be the last people on the planet to admit that lower rates are the problem, not the solution. If the Fed has to pour in 100 billion or a trillion to keep the financial system from unraveling, then they should do so. But they must stop lowering rates, that will only result in risky securities, speculation and bigger problems later.
Mises was right, either we pay for this mess now with taxpayer cash and recession, or we destroy the currency. There are no other choices.
20
posted on
03/18/2008 4:47:36 AM PDT
by
palmer
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