more bad news for Bear Stearns

There is increasing speculation among some market pundits that Bear Stearns may go completely under; imploding in an unprecedented chain of credit derivative failures. If this type of failure occurs, what does it imply for other leading firms involved in the mortgage credit derivative market such as Lehman? Or firms such as JPM with huge general derivative exposures?

Is the derivative market a poorly designed house of cards?

Credit Crunch – Increasing Risk
http://hingefire.blogspot.com/2007/08/credit-crunch-increasing-risk.html


Is there an underlying reason that Cramer is going nuts on CNBC over recent credit liquidity problems on the street? "You don't know how bad it is out there .... the Fed is asleep".

Or are all the fears overblown?
 
Quote from Drock409:

i agree with the poster on LEH...i trade with a couple guys and have noticed teh ENTIRE bank index did not participate in the 2 month rally

and once they started DROPPING last week..we said...somethins ups cause they BANKS are the ONLY ONES that knows everyones positions...including their own ;)

...

Until someone announces IMMEDIATE BUY BACK (not buy back over 5 years) . they keep wackin em

you can have headlines all day long..but at the end of the day...
TAPE NEVER LIES

d
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Drock409, excellent, to the point. Thanks.
 
Quote from osorico:

With or without scapegoats and writedowns, actual or perceived, the market IS getting on with things.
Let me guess... you're buyside only.

Osorico
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I am not buyside only. I simply prefer to see some evidence of an orderly market. A 10% pullback is fine, just not in one day based on a BS rumor. The same is true for the upside. Obviously we all have to deal with whatever the market deals...but essentially the market is just one big crowd - and as we know sometimes crowds riot when they've had too much to drink or feel otherwise inclined. The next morning sometimes provides reflection and a more realistic assessment, and the markets reverse course.

My comment about Bear Stearns was simply to say get the facts out in the open and then let the market decide where to go from there. The stock is being taken down on what people believe to be true. Things could be far worse than the market knows. And we will all know soon enough if that's true.
 
BSC is a long term buy somewhere around here. I'm wondering what the bottom is. Only way they go to $80 is the other shoe has to fall. What that may be, only the BSC insiders knows.

If there are no more skeletons, it's a definite buy. 1-2 years, it will be double what it is now.
 
Quote from atticus:

Perversely, this will be viewed as a positive. BSC opens higher tomorrow.
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I agree with your "perversion" point of view. Back to fundamentals is the name of the game :p :p :p
 
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