kimo
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- Jan 25, 2008
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"Bernankerupted”:Bear Stearns Fire-sale sends Global Markets Plunging; Dollar Routed
"Bernankerupted”:
Bear Stearns Fire-sale sends Global Markets Plunging; Dollar Routed By Mike Whitney
...Economics professor Nouriel Roubini says that, “Lehman's exposure to toxic ABS/MBS securities is as bad as that of Bear: according to Fitch at the beginning of the turmoil Bear Stearns had the highest toxic waste ("residual balance") exposure as percent of adjusted equity on balance sheet; the exposure of Bear was 54.5% while that of Lehman was only marginally smaller at 53.3%; that of Goldman Sachs was only 21%. And guess what? Today Lehman received a $2 billion unsecured credit line from 40 lenders. Here is another massively leveraged broker dealer that mismanaged its liquidity risk, had massive amount of toxic waste on its books and is now in trouble. Again here we have not only a situation of illiquidity but serious credit problems and losses given the reckless exposure of this second broker dealer to toxic investments.” (Nouriel Roubini's Global EconoMonitor)...
...This afternoon, at 2PM, President Bush will meet with the Working Group on Financial Markets (aka; the Plunge Protection Team) at private White House meeting. The group includes the Secretary of the Treasury, the Chairman of the Federal Reserve, the Chairman of the SEC, and the Chairman of the Commodity and Futures Trading Commission. The group of financial heavyweights will update the President on developments in the equities markets and explain in greater detail what Henry Paulson calls “the systemic risk posed by hedge funds and derivatives.” Of course, by then, the blood could be running knee-deep down Wall Street...
http://www.informationclearinghouse.info/article19552.htm
"Bernankerupted”:
Bear Stearns Fire-sale sends Global Markets Plunging; Dollar Routed By Mike Whitney
...Economics professor Nouriel Roubini says that, “Lehman's exposure to toxic ABS/MBS securities is as bad as that of Bear: according to Fitch at the beginning of the turmoil Bear Stearns had the highest toxic waste ("residual balance") exposure as percent of adjusted equity on balance sheet; the exposure of Bear was 54.5% while that of Lehman was only marginally smaller at 53.3%; that of Goldman Sachs was only 21%. And guess what? Today Lehman received a $2 billion unsecured credit line from 40 lenders. Here is another massively leveraged broker dealer that mismanaged its liquidity risk, had massive amount of toxic waste on its books and is now in trouble. Again here we have not only a situation of illiquidity but serious credit problems and losses given the reckless exposure of this second broker dealer to toxic investments.” (Nouriel Roubini's Global EconoMonitor)...
...This afternoon, at 2PM, President Bush will meet with the Working Group on Financial Markets (aka; the Plunge Protection Team) at private White House meeting. The group includes the Secretary of the Treasury, the Chairman of the Federal Reserve, the Chairman of the SEC, and the Chairman of the Commodity and Futures Trading Commission. The group of financial heavyweights will update the President on developments in the equities markets and explain in greater detail what Henry Paulson calls “the systemic risk posed by hedge funds and derivatives.” Of course, by then, the blood could be running knee-deep down Wall Street...
http://www.informationclearinghouse.info/article19552.htm
