ATCJeff
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I don't think so, plus it would kill the dollar.
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I don't think so, plus it would kill the dollar.
Corepuncher
Well-known member
Not only do we have a credit crisis with massive deleveraging taking place, it is coming at a time when the economy is slowing for extra "oomph."
ATCJeff
Well-known member
Equities as collateral. In this market? I sure hope it's a very high ratio in favor of the Fed's. There goes more of our tax dollars if/when this market finally crashes! Crash we will. As 12 would say, bookmark this post. I'm calling a crash, soon!
350zCommTech
Well-known member
ATCJeff,
If I understand this correctly (and I might have this all wrong), BAC buys MER for $29. MER was at $17. BAC takes MER equity to Fed discount window. BAC's net cost for acquiring MER = 29-17 = $12/share?
350zCommTech
Well-known member
"Soon" might be sooner than you think.
Yen carry trade is currently falling of a cliff. I've never seen anything like this since I've been watching the markets(3 years).
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phillyfed
Member
This is with fed backings.....BAC is paying a premium to save the financial industry as a whole IMO . Things are really awful. If MER goes , so does BAC and others.
with no deal for Lehman, Merrill and the other investment firms would have been hit with a "run on the bank," as hedge funds and other clients withdraw funds and banks become reluctant to lend to them. Many of the investment banks rely on short-term loans to finance their day-to-day operations.
The cost of insuring financial firms' debt from default has been soaring. A rise in the cost of the insurance, known as credit default swaps, indicates debt holders believe there is a greater chance of default by the financial companies. Especially over the past week, those insurance costs have been increasing rapidly as more debt holders fear companies like Lehman Brothers and Washington Mutual Inc. could collapse and not be able to repay their debt.
BAC has more accounts then any other bank. It is in their best inyerest to save MER. They have the backing of all the best financial minds in the business.......BOTTOM LINE, THIS HAS TO BE DONE.
Now its time to put my money to work. Good time to be 99% in cash. :suspicious:
ATCJeff
Well-known member
I'm checking/reading. May not have a answer until tomorrow. Something just seems wrong. MER books can't be that good. They would not have sold.
Corepuncher
Well-known member
Make it crash after October 1st! :nuts:
Corepuncher
Well-known member
I was reading a NY times article and somewhere in there it said something to the effect that with the purchase of MER, BAC does not meet capital requirements?? Then, when I went back later to cite it, IT WAS NOT THERE??? I swear it was that article...but I could be wrong. It's almost as if it were removed...
There will be all kinds of ripple effects.
350zCommTech
Well-known member
Exactly, BAC will now have to deal with MER's garbage. Also, BAC already has a hand in CFC. We all know CFC is a POS.
ATCJeff
Well-known member
There's not very much info out right now. Everybody is citing private negotiations.
felixthecat
Member
Your not wrong...I saw the article too describing that if BAC bought Merrill...then they didn't have enough capital to buy Lehman. Something smells very bad in Denmark. This has all the making of strike three+ (Lehman, Merrill, AIG, Yen Carrytrade Unwind) stock market "Monday" crash. Dangerous thin ice the market is on. Whatever the Fed does this time, the train has already been set in motion. Major sell off this week.
I was thinking S&P 1160 for short term rally point...then...down to 1120 for longer term recovery rally. My friend say he is thinking Dow 10500. I'm inclined to think that is to low...but in the last few months, I've been more inclined to consider a much lower point.
I was thinking S&P 1160 for short term rally point...then...down to 1120 for longer term recovery rally. My friend say he is thinking Dow 10500. I'm inclined to think that is to low...but in the last few months, I've been more inclined to consider a much lower point.
Steadygain
TSP Elite
Fexlixthecat,
I'm glad to hear your view on this.
It seems like only yesterday your view was the FED had done everything right (that we hit the bottom and it can only go up). But then at THAT MOMENT both of us thought it was simply a "correction wave" and had every reason to expect better things to follow.
10,500 may appear too low - and the government/FED will do everything possible to settle things by the standard 'smoke and mirrors' tactics of the past: But the bottom line is a TRUE BEAR will not easily be defeated once he emerges and he is just emerging.
weatherweenie
Well-known member
Briefing.com: Fed funds futures rally in the wake of the financial market turmoil, now suggesting there is a strong possibility of a rate cut on Wednesday. Futures suggest a 74% of a 25 basis point cut to 1.75%, and a 26% chance of no change.
Steadygain
TSP Elite
The MEDIA is even more powerful than the MARKETS.
Censorship and CONTROL or is there the possibility of FREE SPEECH - that is the question??? Or what is actually allowed to dominate as the news that carries the public and helps us form our views of various individuals, corporations, policies.
This will likely be one of the hardest times in history because the facts are so easy to retrieve and although the myth is easy to buy into and believe - the FACTS CAN NOT BE IGNORED.
Braveheart
Member
Holding 100% C Fund
Show-me
Well-known member
Yea, I'm hanging in there for now.
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