Rolling US Economy Into The Shitbin Thread

<img src="http://upload.wikimedia.org/wikipedia/en/f/f8/Young_Jeezy_-_The_Recession.jpg";>

tom, what grade level are you again?

http://upload.wikimedia.org/wikipedia/en/f/f8/Young_Jeezy_-_The_Recession.jpg

Goldman down 24%
Gold up 10%

http://finance.google.com/finance?q=gs+gld

no, that article is completely right, unless you have more than 100k in there

― akm, Wednesday, September 17, 2008 12:36 PM (1 hour ago) Bookmark Suggest Ban Permalink

What is my incentive for them to not fail vs. getting my money out and them failing? Also doesn't the FDIC not have enough cash to cover a WaMu failure and would have to wait for the gov to give them more? Fucking christ, you believe in FDIC?

when the needle hits wax you go down like goldman sachs
I hold gold while you fold, your cash crashed, credit maxed

o god plz stop me

whoa am i not supposed to believe in fdic? i thought only old people didnt trust the fdic

it's been fairly common knowledge that the FDIC is underfunded and couldn't cover a major banking crisis, no?

FDIC is cold like ice is, a glacier that will cover any crisis

guys the country is only ten trillion in the hole, we're okay.

Hey so which banks are good? Should I go foreign owned (is HSBC actually foreign?)?

hsbc is strong
yes they are foreign

http://www.verlo.com/secure/822.images

I just joined HSBC from HBOS last week ha

Morgan Stanley down 1/3rd of its previous worth

this is the last supper, you better get your holy grail out
I'll tax your ass harder than an investment bank bailout

srsly stop it

thanks, I needed that

suggestions for tomorrow's headlines

WHERE O WHERE IS THE BOTTOM

FALL FASHIONS: FLOOR IS THE NEW CEILING

What is Jeb Bush's role in the Lehman Brothers meltdown?

Lehman Brothers was founded in 1850. The firm managed to get through the Civil War, WWI, and WWII, the Great Depression, and the attacks of September 11, 2001. Yet after hiring Jeb Bush in late August of 2007, the firm suddenly goes belly up in a year. It also should be noted that in 2006, George H. Walker IV was also hired by Lehman Brothers.

Er.. okay

So now the Treasury Dept is bailing out the Fed itself? Can someone tell me this is business as usual or insignificant?

http://www.washingtonpost.com/wp-dyn/content/article/2008/09/17/AR2008091701403.html

Fed Asks Treasury Dept. for Funds to Backstop Intervention Efforts
By David Cho
Washington Post Staff Writer
Wednesday, September 17, 2008; 12:55 PM
The Federal Reserve has requested that the Treasury Department deposit $40 billion with the central bank in an effort to help the Fed continue to stabilize the financial markets and address concerns about whether it is overstretched.

The Fed's extraordinary series of efforts to pump extra funds into the financial system and bail out such firms as American International Group and Bear Stearns with mammoth loans has depleted its store of Treasury bonds. The central bank will use the funds to offset the amount of money it has injected into the markets in its rescue efforts.

Really this should be for the UK thread but anyway:

Andrew Lloyd Webber, the British composer, hopes to rush to the rescue of all those London bankers who recently lost their jobs in the turbulent financial markets. To brighten their days, Mr. Lloyd Webber decided to offer them free tickets to his shows.

“I thought that free tickets might offer some respite, albeit for a couple of hours, for some of those people who have sadly lost their jobs in the current economic upheaval,” Mr. Lloyd Webber said in a statement on Wednesday. “Both ‘The Sound of Music’ and ‘Joseph’ are feel-good shows.”

People will receive two free tickets for one of the shows between Monday and Thursday when they present their P45, a form handed out by companies to people they fire, at the box office. The offer is open until Oct. 15 and applies only to former employees of financial institutions in London who lost their jobs after Sept. 1.

let them eat showtunes

Washington Mutual up for auction.

They should try ebay.

Read my mind.

this country needs a maverick who will put banks up on ebay

raggett / nicole '08

I have the glasses.

ned has the experience

let's waste lots of money

this country needs a maverick who will put banks up on ebay

http://fourfour.typepad.com/photos/uncategorized/tyra_kmfa.gif

It is true that I would be only the figurehead for the true energizer of the base.

I can see Canada from my house!

Librarygate. Your kid's name is Miffle, yes?

wau, -440 points today

(and I don't understand stocks)

when Goldman crashes and Morgan Stanley starts getting lip action from suitors, you know the shit is hitting the fan

i love morbius on this thread

if we end the year with zero independent investment banks extant does that signify the end of an era?

Oh, to wonder where this sad little fucker ended up

remember the halcyon days when we just had threads that said "Real Estate bubble bust may be worse than Dot Com bubble bust;

WaMu up for sale
here

a fond look back:

The year-end bonus is a Wall Street tradition, and for a second consecutive year, the amounts are significant. Three major Wall Street firms - Goldman Sachs, Lehman Brothers and Bear Stearns - have reported record profits for the year and all are said to have given out handsome bonuses.

...One senior trader is building a sports complex for triathlon training at his house in upstate New York. It will include a swim-in-place lap pool, a climbing wall and a fitness center. Another bought an Aston Martin. For some, upgrading real estate is the first order of business.

... Another senior banker at a different firm, who is set to receive a $2.8 million bonus, said he had bought his wife a mink coat and was planning a weeklong skiing vacation out West. But he also said he intended to save most of the money. "We're not buying homes or boats, we're not spending on the big things," he said. "We are more relaxed and generous on the small things."

Of course, small is in the eye of the beholder. While the Maybach, an exclusive line of luxury cars made by Mercedes-Benz that starts at $315,000, appears on the wish lists of many bankers, relatively less expensive models from Aston Martin, Bentley and Maserati have also been popular. Michael Parchment, general manager for Miller Motorcars, a luxury dealership in Greenwich, said demand had been soaring.

"It's probably up 20 to 30 percent from the same time period last year," he said. "Unfortunately, production isn't up." The result, he said, are some unhappy bankers.

Next up.......Wachovia! Woo

Morgan Stanley Considers Merger With Wachovia
By BEN WHITE and ANDREW ROSS SORKIN
Published: September 17, 2008

Morgan Stanley, one of the two last major American investment banks, is considering a merger with the Wachovia Corporation or another bank, according to people briefed on the discussions.

The Morgan Stanley chief executive, John J. Mack, received a telephone call on Wednesday from Wachovia expressing interest in the Wall Street bank. Morgan Stanley is considering other options as well. Other banks have also expressed interest in Morgan Stanley.

The talks are preliminary and no deal may emerge.

Wachovia declined to comment.

Shares of Wachovia fell 20.76 percent, or 2.39 percent, to $9.12; Morgan Stanley declined 24.22 percent, or $6.95, to $21.75.

Wow, it's like everything some blogger said might go wrong is going wrong!

So is the end result of this debacle like 2-3 megabanks who run everything under the sun?

Well, at least until the revolution.

http://static.rateyourmusic.com/album_images/87278.jpg

http://online.wsj.com/article/SB122168156315148901.html?mod=testMod

After Morgan Stanley's precipitous decline in the last few days, its market value is only slightly above Wachovia's, so the likeliest combination would be a merger of equals. Wachovia also has been pounded by the mortgage mess, including its ill-fated acquisition of Golden West Financial Corp. in 2006. Wachovia's $25 billion purchase of Golden West at the height of the housing boom exposed it to large mortgage losses. The Charlotte, N.C., bank has said it believes losses for Golden West's "payment option" loan portfolio could eventually reach 12%.

But many analysts believe the losses from that portfolio may exceed 12 %.

"Is it going to be 20 percent? Is it going to be 30 percent?" said Nancy Bush of NAB Research LLC in Annandale, N.J. "Nobody knows." New CEO Robert Steel is "to some degree hostage. A hostage of the numbers that have been handed to him." Wachovia has created a distressed asset resolution team to work through the problem loans and refinance mortgages where possible. "I don't think they have many options," Ms. Bush said. "There is nobody they can sell this stuff to."

Morgan Stanley said Wednesday it was doing everything it could to shore up a rapidly sinking stock price.

So Charlotte is the new New York then, with BoA buying Merril, and Wach buying MS

So is the end result of this debacle like 2-3 megabanks who run everything under the sun?

And a US cabinet appointee who sits on the board of all the other banks.