Lehman

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Bullitt

Bullitt

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Start playing 'Taps' right now. You are now witnessing a run on Lehman Brothers and there aren't nearly enough lifeboats for everyone.
 
Lehman or Washington Mutual. The Feds will let one of these two companies fail. The question is which one? Could they let both fail?

Glad I'm in the Geee.
 
Dont forget about the Big Three Automakers standing in line waiting for their handout...and the airlines will be next. BSC was precedent-setting.
 
luv2read said:
dont forget about the big three automakers standing in line waiting for their handout...and the airlines will be next. Bsc was precedent-setting.
Click to expand...
hhhummp!! Cough cough ==== loans!!:d
 
You're both right. There's not enough government cheese for everyone. The big 3 just kept pumping out those SUV's while Toyota produced the more fuel efficient vehicles.

Which would be worse to let fail, WaMu or LEH? Now that LEH dropped a real estate bomb on us, who knows how much deleveraging they've got on their hands. After the hits BAC took under the CFC deal, and the hits JPM is taking with BSC, buying out LEH and WM would be like buying up land near Chernobyl at this point.
 
Analysts: I Quit! I Have No Idea What's Happening!
CNBC
Posted By:Bob Pisani
Topics:Investment Strategy | Stock Market

Analysts, shell-shocked by the events in financials this week, are simply giving up today:

1) Merrill Lynch analyst Guy Moszkowski has changed his rating on Lehman from "neutral" to "no opinion."


2) Morgan Stanley said that while they were maintaining their research coverage on Lehman, they are removing their ratings and price targets "due to heightened market uncertainty."

3) Landeburg Thalman's Dick Bove is suspending his price target and Neutral rating on Washington Mutual "until there is some clarification as to what was in the MOU [Memorandum of Understanding]."
http://www.cnbc.com/id/26661632
:confused::worried:
 
ATCJeff said:
Lehman or Washington Mutual. The Feds will let one of these two companies fail. The question is which one? Could they let both fail?

Glad I'm in the Geee.
Click to expand...


Looks like Lehman will be the first. Tomorrow has the potential to be a huge meltdown!
 
When you look at Who owns Who, you get the picture of how bad this one is going to get.

So far, we've had Fannie and Freddie go down. Then Lehman Brothers. Now AIG, a major holder of all of those stocks, is now down 65% today.

So who is next? Let's take a look at who is holding a major portion of AIG shares.

Here is a prediction: Watch AXA.

Market cap is showing 60 billion. Widely diversified. that's good.

But it looks like it's lost more than 10% of it's holdings in the last few days.

AXA is only down a bit today, but has been loosing steadily as all the others tumble.

AXA holdings so far in the last three months-- down nearly 7 billion:

AXA Losses By Firm (incomplete list of holdings)

________________Date_shareprice
_______#Shares__6/30/2008__9/12/2008_LOSS/-Profit
AIG__132593871___26.46___12.14__$1,898,744,232.72
FNM__134292348___19.51___0.74___$2,520,667,371.96
LEH__65706019____19.81___3.65___$1,061,809,267.04
FRE__41088126____16.40___0.46___$654,944,728.44
MER__48345162____31.71___17.05__$708,740,074.92
MS___66771586____36.07___37.23__-$77,455,039.76
GS___10168295__ 174.90__154.21__$210,382,023.55

___________________Total_______$6,977,832,658.87

That was as of last friday.

Now we take AIG, from last friday $12.14, to today's price: $5.80

FNH from last friday's 0.75 to today's 0.62

LEH from 3.65 to today's 0.21

FRE from .46 to today's 0.39

MER is the only bright spot- going from $17 to $20 today,

MS from $37.23 to today's $33.76

GS from friday's $154 to today's $142.

Things not looking good for AXA.

Dominos could unwind for companies like AXA, if too many holdings go down.
 
clester said:
Fed rate cut or some other action today or tomorrow? They've done it in the past.
Click to expand...

Maybe they'll pass legislature to "FORCE" banks to loan money....Maybe the BANK OF AMERICA has a few more dollars stashed away to bailout other companies. Hell if they have another 50 billion, they could own Detroit, or at least part of it!:cool:
 
What do y'all think? Better than a 50% chance of a rate cut on Wednesday?

bernanke-helicopter.jpg
 
Bank of America

What the heck are they thinking buying Merrill? Talk about being late to the party, They are supposed to be the smart money! They buy CFC way before the housing bottom and have destroyed shareholders already with that one. Leverage is lost and gone forever on wall street yet BAC smashes shareholders further by buying MER today. Their tier one capital is going to take a major hit and get ready for a huge divy cut. At least the fed backed JPM with the BSC buyout so there was some kind of backstop.

BAC bought Merrill for 30 some bucks at the open when they probably could have bought it for about $3 at today's close! Smart Money?!
 
Yea, two big stupid move in the same year. Everyone on the media wailed on them for being too early on CFC and now the same game with MER.
 
Bullitt said:
Bank of America

What the heck are they thinking buying Merrill? Talk about being late to the party, They are supposed to be the smart money! They buy CFC way before the housing bottom and have destroyed shareholders already with that one. Leverage is lost and gone forever on wall street yet BAC smashes shareholders further by buying MER today. Their tier one capital is going to take a major hit and get ready for a huge divy cut. At least the fed backed JPM with the BSC buyout so there was some kind of backstop.

BAC bought Merrill for 30 some bucks at the open when they probably could have bought it for about $3 at today's close! Smart Money?!
Click to expand...


My guess is BAC saw the writing on the wall and tried to save the financials with the buy. WRONG move! Price/money was not a factor. It was all about the save. Psychological move pure and simple!:nuts:
 
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