stoshuaj Posted March 18, 2008 Share Posted March 18, 2008 can somebody explain, (without just yelling "but we're in a recsession and it's Bush's fault"), in laymen's terms why I should care? They made risky business decisions which have now come to bear and they are suffering the consequence. ok, why should I want or more importantly, need the gov't to bail them out? what am I missing? Link to comment Share on other sites More sharing options...
rincewind Posted March 18, 2008 Share Posted March 18, 2008 I don't know - but Jon Stewart ripped Jim Cramer a new ******* last night because Cramer told people not to worry and to leave their money with Bear-Stearns. :doh: Link to comment Share on other sites More sharing options...
daveakl Posted March 18, 2008 Share Posted March 18, 2008 kind of a tough question. Very very very very very basic answer: Lots of people lost tons of money and it makes others a little more on edge about investing in the stock market. Link to comment Share on other sites More sharing options...
SkinInsite Posted March 18, 2008 Share Posted March 18, 2008 That's what you get for getting in to subprime lending, too bad I have friends who works for B&S. Although they'll get a golden parachute because b&s won't declare bankruptcy on the tax payer's penny. JPMorgan's getting a great deal so maybe it's more about strengthing JPMorgan instead of helping out b&S. Link to comment Share on other sites More sharing options...
DeanCollins Posted March 18, 2008 Share Posted March 18, 2008 Gotta love that corporate welfare baby. Let's get some repubs in here complaining about it. Link to comment Share on other sites More sharing options...
paige3girl Posted March 18, 2008 Share Posted March 18, 2008 A lot of regional financial institutions are in serious trouble and fear that now that JP Morgan bought up BS there are fewer big institutions out there to rescue them and you could see a collaspe of some regional banks. There are also big insitutions in trouble as well my husband works for the only profitable arm of Citi and they are constantly hearing rumors that they are going to be spun off and Citi could go looking for a bailout. I don't have a very good understanding (so don't go screaming at me) but that is a little of what I understand. I also read that the Fed could again lower the interest rate today to 2% to help curb a potential ripple effect in the industry. Link to comment Share on other sites More sharing options...
Forehead Posted March 18, 2008 Share Posted March 18, 2008 I don't have a very good understanding (so don't go screaming at me) but that is a little of what I understand. I also read that the Fed could again lower the interest rate today to 2% to help curb a potential ripple effect in the industry. I heard this as well; the Fed may lower rates another full percent today. Also, I heard something about Bear Stearns being worth 3.5 billions dollars last weekend and bought by JP Morgan for 250 million? That's a hell of a deal. Link to comment Share on other sites More sharing options...
paige3girl Posted March 18, 2008 Share Posted March 18, 2008 I heard this as well; the Fed may lower rates another full percent today. Also, I heard something about Bear Stearns being worth 3.5 billions dollars last weekend and bought by JP Morgan for 250 million? That's a hell of a deal. yeah $2 a share. When BS workers showed up to their offices yesterday there was a $2 bill taped to the front door and all of these low rent realtors waiting for them. That I think is sad. Link to comment Share on other sites More sharing options...
frommd Posted March 18, 2008 Share Posted March 18, 2008 I'm no finance expert either, but in laymens terms, their money is so tied into everyone elses that if they go under, it will cause a big ripple effect that will have a much larger impact. Link to comment Share on other sites More sharing options...
daveakl Posted March 18, 2008 Share Posted March 18, 2008 fed will prob have rates at 0 sooner then you think Link to comment Share on other sites More sharing options...
buenosdiaz Posted March 18, 2008 Share Posted March 18, 2008 the multiplier effect? Link to comment Share on other sites More sharing options...
frommd Posted March 18, 2008 Share Posted March 18, 2008 yeah $2 a share. When BS workers showed up to their offices yesterday there was a $2 bill taped to the front door and all of these low rent realtors waiting for them. That I think is sad. I also heard that the employees had 30% ownership, so they will lose the most. Link to comment Share on other sites More sharing options...
paige3girl Posted March 18, 2008 Share Posted March 18, 2008 I'm no finance expert either, but in laymens terms, their money is so tied into everyone elses that if they go under, it will cause a big ripple effect that will have a much larger impact. exactly, other investment banks could have clients that had mulitple BS shares in their portfolio. Link to comment Share on other sites More sharing options...
Mark The Homer Posted March 18, 2008 Share Posted March 18, 2008 can somebody explain, (without just yelling "but we're in a recsession and it's Bush's fault"), in laymen's terms why I should care?They made risky business decisions which have now come to bear and they are suffering the consequence. ok, why should I want or more importantly, need the gov't to bail them out? what am I missing? The following* is a pretty good explanation of what happened, in layman's terms - not to Bear Stearns specifically, but of what happened to the banking, mortgage, and investment industries in general: *credit Laura Stanton - The Washington Post - Business - 3/14/08 Link to comment Share on other sites More sharing options...
portisizzle Posted March 18, 2008 Share Posted March 18, 2008 "How do you convince people in the market that this is a one-time deal, you're never going to do it again, you're swearing off demon rum and you're going to stay on the wagon in future?" asked Daniel J. Mitchell, a senior fellow at the Cato Institute. "Capitalism without losses is like religion without hell." http://www.washingtonpost.com/wp-dyn/content/article/2008/03/17/AR2008031702969.html?hpid=topnews Link to comment Share on other sites More sharing options...
GibbsFactor Posted March 18, 2008 Share Posted March 18, 2008 can somebody explain, (without just yelling "but we're in a recsession and it's Bush's fault"), in laymen's terms why I should care?They made risky business decisions which have now come to bear and they are suffering the consequence. ok, why should I want or more importantly, need the gov't to bail them out? what am I missing? +Why should you care? You bought Bear Stearns. Bet you didn't know that. But guess what, you won't see any returns for it. EDIT: Also, this latest issue goes to show how OVER INFLATED EVERYTHING IS. Link to comment Share on other sites More sharing options...
Mark The Homer Posted March 18, 2008 Share Posted March 18, 2008 "How do you convince people in the market that this is a one-time deal, you're never going to do it again, you're swearing off demon rum and you're going to stay on the wagon in future?" asked Daniel J. Mitchell, a senior fellow at the Cato Institute. "Capitalism without losses is like religion without hell."http://www.washingtonpost.com/wp-dyn/content/article/2008/03/17/AR2008031702969.html?hpid=topnews "Bears Stearns demise should probably be viewed as the first of many." Richard Bernstein, Chief Investment Strategist, Merrill Lynch. (see link above) Link to comment Share on other sites More sharing options...
GibbsFactor Posted March 18, 2008 Share Posted March 18, 2008 "Bears Stearns demise should probably be viewed as the first of many." Richard Bernstein, Chief Investment Strategist, Merrill Lynch.(see link above) :laugh: There's an understatement. It's amazing how people didn't see this coming and still contend that this is a regular cyclical development. Link to comment Share on other sites More sharing options...
portisizzle Posted March 18, 2008 Share Posted March 18, 2008 +Why should you care? You bought Bear Stearns. Bet you didn't know that. But guess what, you won't see any returns for it. Actually this is not true. The government backed a small part of the portfolio of mortgage backed securities. When they go to sale in the next thirty days their may be a gain or loss. But "we" did not buy Bear Sterns. What "we" did was avert a pending catastrophe by allowing a suitor to agree to a firesale while accepting much risk. Link to comment Share on other sites More sharing options...
Stophovr6 Posted March 18, 2008 Share Posted March 18, 2008 :laugh:There's an understatement. It's amazing how people didn't see this coming and still contend that this is a regular cyclical development. Why is it funny? I've seen you post this same thing alot. I don't think people didn't see this coming at all. I'm sure a lot did. But most didn't want to believe it. Denial isn't just a river in Egypt. Link to comment Share on other sites More sharing options...
portisizzle Posted March 18, 2008 Share Posted March 18, 2008 :laugh:There's an understatement. It's amazing how people didn't see this coming and still contend that this is a regular cyclical development. It could be said that past action by the Fed and policy makers have helped our country avoid this cyclical development in the past. Only to make the pending situation that much more dramatic. I am not sure where you are going with this line of conversation. If you are looking for blame, rest assured there is plenty to go round. Including those that thought they could afford $3,000 per month for a mortgage on a $50,000 per year paycheck. :2cents: Link to comment Share on other sites More sharing options...
GibbsFactor Posted March 18, 2008 Share Posted March 18, 2008 Actually this is not true.The government backed a small part of the portfolio of mortgage backed securities. When they go to sale in the next thirty days their may be a gain or loss. But "we" did not buy Bear Sterns. What "we" did was avert a pending catastrophe by allowing a suitor to agree to a firesale while accepting much risk. It's absolutely true. The fed bought them. Where's the disconnect here? Link to comment Share on other sites More sharing options...
Mark The Homer Posted March 18, 2008 Share Posted March 18, 2008 "It's just the beginning. These are terrible times; everybody is anxious. I see locusts, black skies. It's very bad." - Steven Rosenberg, 37, a vice president of a financial institution -- he declined to say which one "...the markets really can't begin to recover on a more systematic basis...until there is blood in the streets. This Bear Stearns situation may be that catharsis." -Randy Bateman, chief investment officer for Huntington Asset Advisors. http://www.washingtonpost.com/wp-dyn/content/article/2008/03/16/AR2008031602523_2.html?sid=ST2008031602369 Link to comment Share on other sites More sharing options...
GibbsFactor Posted March 18, 2008 Share Posted March 18, 2008 Why is it funny?I've seen you post this same thing alot. I don't think people didn't see this coming at all. I'm sure a lot did. But most didn't want to believe it. Denial isn't just a river in Egypt. Just laughing at his statement, as if it even needed to be said. Fact is, it isn't the first. I see a lot of people going about things as business as usual even though people have been trying to wake others up for a year. We are going to go bankrupt as a nation. I kid you not. Link to comment Share on other sites More sharing options...
GibbsFactor Posted March 18, 2008 Share Posted March 18, 2008 It could be said that past action by the Fed and policy makers have helped our country avoid this cyclical development in the past. Only to make the pending situation that much more dramatic.I am not sure where you are going with this line of conversation. If you are looking for blame, rest assured there is plenty to go round. Including those that thought they could afford $3,000 per month for a mortgage on a $50,000 per year paycheck. :2cents: Those aren't who is to blame. Those people were simply playing the game. The game is what is to be blamed. Link to comment Share on other sites More sharing options...
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