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Post Tagged with: "Bear Stearns"

Bear Stearns

The US Fed’s Debt Recycling Program

The US Fed’s Debt Recycling Program

The US Fed decided to fight fire with fire. To solve the debt problem, they added debt! The genius of this plan was, we admit, not immediately obvious..

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Caution: Central Bankers at Work!

Caution: Central Bankers at Work!

What’s driving this market? A real recovery? Or central banks‘ fast and easy money? We’ll take a wild guess.

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The Sovereign Bond Crisis: When Collateral Kills

The sovereign bond crisis is going to play out in a way you don’t expect. It’s going to get you by the back door, just like the sub-prime loan mess did. In fact, the very same back door. ‘It’s all got to do with collateral, you see.’

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The SKI Principle

A trip home to the Sunny Coast revealed several things. One of them was the SKI principle. This sophisticated philosophy allows people to retire in comfort…

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Trade of the Decade: Sell Stocks and Buy Gold

Trade of the Decade: Sell Stocks and Buy Gold

So about 10 years ago, when I first started working with Bill, he came up with this idea for a Trade of the Decade. It was really just a literary device. But it ended up being a brilliant investment call.

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USA Has Fives Times As Much Sovereign Debt As All the PIIGS Put Together

The PIIGS owe $2 trillion, which might need to be restructured. Yes, dear reader, the sovereign debt problem is a big one – much bigger than Bear Stearns, Lehman Bros. and AIG.

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The Biggest Financial Deception of the Decade

Enron? Bear Stearns? Bernie Madoff? They’re all big stories about big losses and have hurt a lot of employees and investors. But none come close to getting my vote for the decade’s most dastardly deception…

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Copenhagen Climate Talks Possibly Sent the Market Higher

The S&P 500 hit a 14-month high overnight. The conventional wisdom is that two news events are responsible. This is probably wrong. But let’s look at both events anyway and see what happened.

The first is that Abu Dhabi extended a $10 billion in financing to debt-distressed Dubai. Hossanah! Remember, Dubai is not Lehman. It’s Bear Stearns.

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Dubai Debt Story More Like Bear Stearns Less Like Lehman Brothers

But first things first. Dubai World is not nearly large, leveraged, or systemically important as either Bear Stearns or Lehman Brothers when both those firms failed. For those reasons, it’s unlikely that the failure of Dubai World (and we’re not saying it will fail) would, by itself, cause a global deleveraging.

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Bullish On Silver

Well, maybe not all buying is drying up, as silver market analyst, Ted Butler, reports that in the last 10 months, “some 150 million ounces of silver can easily be documented to have been bought by investors.

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Suspicion the Service Sector Consumer Spending Series is Overstated

Suspicion the Service Sector Consumer Spending Series is Overstated

If we compare consumer spending on services with hours worked in the service sector employment report, we find a huge surge in implied service sector productivity.

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Bank Stress Test Not Stressful Enough

Forecasting loan losses at banks is inherently speculative. Forecasting future cash flow from existing loans is also speculative. Both estimates lie at the core of this week’s leaked (and eventually announced) stress test.

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Bankers Going Galt

Bankers Going Galt

Why aren’t the banks lending locally and what are they doing instead? Well, they’re probably terrified that commodity prices won’t recover any time soon, rendering the collateral posted by mining companies worth a lot less. Or, worried about future losses in commercial property, the banks are saving up for a rainy day.

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Angry Mortgagees Protesting Bear Stearns Favouritism

Last Wednesday, a bunch of peeved mortgagees protesting government favoritism in the Bear Stearns case entered the lobby of the company’s (soon-to-be-former) headquarters building in midtown Manhattan. While it might not seem like much, I view the symbolic “penetration” of this corporate stronghold as the very first sign of a much broader citizen revolt against the extraordinary protections being shown to crapped-out investment banker boyz…

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The Kindness of Strangers in the East is Waning

The background for this latest crisis is what we’ve been reckoning within these Daily Reckonings for so many months. The geniuses at Bear Stearns had their calculators…their Black Sholes Option Pricing Model…their mathematicians…their risk figures… They had some of the finest minds in the country – or at least, some of the finest minds money could buy on Wall Street.

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