If BSC takeover was @ $33 would mkt be down?

[turkeyneck]

Quote from xflat2186:

And just think of how great the market would be doing if they did the deal at 100 bucks?

This thread is a total moot point since the price is 2 bucks.

Yes, Naz 5000, could have, should have...

 

[brettman9]

Quote from silk:

The point is, if the reason why market players have conviction to short the markets into oblivian is because a bankrupt firm was taken over at $2 instead of the $33 they feared...then the selling is emotional and thus likely not sustainable.

That said, this is looking more and more like black monday.

This is driven by the following:

The BSC deal worked out..but poorly for those holding it...real poorly...But that's not the blade

The blade is the fact that the news was accompanied by the fed making two moves that blatantly tipped their hand: someone else is in trouble. They essentially moved the broker/dealer lending facility to 'effective immediately'...and then cut the discount. The combination means they are preparing for investors to run someone...probably a broker, so they are opening the window, and setting the banks up as an entorage.

You might say, yeah but, that may just be because they sense a possible crash,..but they know better than that...the announcement of such a strategy will only serve to spark more panic. So it would be used only if absolutely needed.