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Discussion Starter #1
Plop, plop plop...

That the S Hitting TF...seriously.

I have worked in the Finance industry for approx 8 years now and this news makes me very, very nervous. The scope of what is underway is not being fully appreciated imo. AIG is turning down Private Equity, instead requesting a bridge loan from the Federal Reserve for 40 Billion!


Bank of America to Buy Merrill

http://online.wsj.com/article/SB122142278543033525.html?mod=special_coverage

Barclays walks away from deal to rescue Lehman Brothers
http://www.telegraph.co.uk/money/main.jhtml?view=DETAILS&grid=&xml=/money/2008/09/15/bcnbarc115.xml

Derivatives market trades on Sunday to cut Lehman risk
http://www.reuters.com/article/newsOne/idUSN1444498020080914?virtualBrandChannel=10272

China may cut its dollar holdings - CICC
http://www.chinadaily.com.cn/china/2008-09/12/content_7020656.htm

This is most likely the collapse folks, it's here, it may not fully materialize by tomorrow or next week, but the grip is loosened considerably and things are slipping quickly...remember this the derivatives market is the real danger here. That equates to a 450 TRILLON dollar danger. I've been on the phone with my colleagues all night and one thing we can all agree on is This is very serious.
 

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Discussion Starter #3 (Edited)
You mean depression or SHTF?
Razor,

I'm not too sure honestly, all I know is that I probably am going to be out of work along with tens of thousands of my co-workers/colleagues with the coming weeks to months.

From what I am seeing and hearing it could get Argentina 99' style around here sooner than later as this thing unravels.

A good friend and coworker put it succinctly when he said that the derivatives is truly what The Fed and other banks are concerned about. The leverage just in Lehman's holdings could impair the entire system if not handled correctly.

It's now 12:55am EST and the Dow fut's are already bleeding off over 3%

What makes this so bad is that it's so pervasive...the stink is everywhere.

The word of the day for hedge funds, mutual funds, MM funds, pension etc etc etc. will be MARGIN CALL
 

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Discussion Starter #4
UPDATE:

Remember that article from above
"Derivatives market trades on Sunday to cut Lehman risk"?

Well Lehman filed bankruptcy AFTER 11:59 and Screwed the broker/dealers

No risk amelioration for the derivatives involved. wow, just wow...
 

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UPDATE:

Remember that article from above
"Derivatives market trades on Sunday to cut Lehman risk"?

Well Lehman filed bankruptcy AFTER 11:59 and Screwed the broker/dealers

No risk amelioration for the derivatives involved. wow, just wow...
so what does that mean i can be slow sometimes and this seems to be one of thoughs slow times :confused:
 

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I don't know what that exactly means in English but in Russian it is something along the lines of "Всё очень хуёво дорогие товарищи."
 

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Hate to be a p.i.t.a. but it's "you're" sorry homes, down side of minoring in English for 2 quarters.
 

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I can see how this can be very bad news in the short term. However, how much of a long term impact will this have on the economy? I view this as having the same kind of financial impact as 9-11 did. Short term was painful, but then there were several good years of growth in the housing and stock markets.
 

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WV I think it could be much worse, they have been debating on CNBC about the FDIC being able to cover the banks, analysts flat out said this morning that if you have under 100k in the bank you are ok but if you have over 100k like small businesses have for payroll then they may want to start making some money shifts. If AIG goes down it is going to be chaos but I don't think the Fed will let that happen since it could be catastrophic.

President Bush will speak at 11:10am about the financial situation.
 

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I personally feel NOT ONE SINGLE BIT OF PITY for any of these bastards. Banks have been screwing and swindling Average Joe for a while now and Karma is a bitch ain't it. Sadly, they are taking the economy (and us) down with them in the lost jobs.

Yes, i am sure people are screaming...this is bad for me...I can't get a loan now. So what, do what they did in the old days and save some money first before you run out to get that new BMW.
 

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I had a person tell me just this morning( They work fairly high up in the mortgage world) that the Govt had to take over Fan and Fred cause both companys in order to raise capital where about to start calling in loans.That is scary!!!! If all of us that have a mortgage need take out the paperwork and read .......You can even be paid ahead on your loan or have never been behind and they can still call for full payment!!!!! They needed cash! even if they only got 40 cents on the dollar, that is a lot more than they have now....Just think how that would have hit the" joe six pack" confidence.
 

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Razor, A good friend and coworker put it succinctly when he said that the derivatives is truly what The Fed and other banks are concerned about. The leverage just in Lehman's holdings could impair the entire system if not handled correctly.

MARGIN CALL
There is no doubt that the derivatives are causing lots of grief for lots of people and companies!! To put it in terms that we can all understand value wise, consider this:

The credit default swaps, etc, that make up the unregulated Derivatives market are valued at more than ALL the real estate on planet earth and then some!! Scary times ahead as these things come to light!!
 
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