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TraderJoe
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A large bank is about to go bust...we're not going to tell you which one

September 15th, 2008, 10:19 pm

QuoteCrisis on Wall Street: Roubini Predicts Another 20 Percent Stock Drop, Sale of Goldman, MorganAfter failing to find a buyer this weekend, Lehman Brothers filed for the largest bankruptcy in U.S. history while Merrill Lynch agreed to be acquired by Bank of America for $50 billion. Such extraordinary events set the stage for a wild Monday on Wall Street, and most likely beyond.These incredible, once unthinkable developments have caught a lot of people off guard, but not Nouriel Roubini, of NYU's Stern School and RGE Monitor, whose alarming predictions about the housing market and finanical system have been coming to pass with alarming frequqency. This morning, Roubini forecast another 20% drop in stock prices, and reiterated a prior view that there will be no major independent broker/dealers standing before this crisis ends. In other words, Goldman Sachs and Morgan Stanley should be seeking suitors today, or face a similar fate as Lehman later.Roubini and NY Post Wall Street reporter Mark DeCambre joined Henry and me this morning to discuss this weekend's dramatic events. The accompanying video focuses on the big question of "What's Next?" Stay tuned for subsequent segments where we will drill down on related issues, including:What is the economic impact of Wall Street's unwinding? The response of policy makers: Good, Bad, Insufficient?What happens when the Fed meets Tuesday? Why Bank of America may regret buying Merrill Lynch.What's the fate of AIG, Washington Mutual, Citigroup, Goldman, Morgan, and other financial firms? I love the smell of profits in the morning.
 
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psholtz
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A large bank is about to go bust...we're not going to tell you which one

September 15th, 2008, 10:36 pm

QuoteOriginally posted by: daveangelWho cares what the ass Greenspan thinks ? If he calss it a 100 year storm then he can excuse himself. the problem was created in 2003 when he could face the prospect of inflation dropping to 1% and created a massive liquidity bubble. IdiotIdiot?You think he (or those he works for and represents) didn't (deliberately) plan it this way?There are a great many people who reap great fortunes when bubbles pop. This has been understood for a long time..
 
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GeneralDude
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Joined: August 26th, 2006, 11:44 pm

A large bank is about to go bust...we're not going to tell you which one

September 15th, 2008, 10:39 pm

What is the consequence of handing out this cheap debt and cutting the discount rate when inflation is reaching a historic high? Do they think this influx of liquidity will do nothing but raise capital for the retards at the big banks that don't understand risk management? Tragically, I am wondering if it may actually be more beneficial for the American taxpayer to bail out these companies than for the govt to print more money... Neither should be done of course...
 
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penguina
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A large bank is about to go bust...we're not going to tell you which one

September 15th, 2008, 11:07 pm

whoever is to blame - and I personally blame the central banks, especially the Fed - we're now facing the probability of a depression.
 
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TraderJoe
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Joined: February 1st, 2005, 11:21 pm

A large bank is about to go bust...we're not going to tell you which one

September 15th, 2008, 11:11 pm

QuoteOriginally posted by: penguinawhoever is to blame - and I personally blame the central banks, especially the Fed - we're now facing the probability of a depression.yep.
 
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GeneralDude
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A large bank is about to go bust...we're not going to tell you which one

September 15th, 2008, 11:14 pm

QuoteOriginally posted by: penguinawhoever is to blame - and I personally blame the central banks, especially the Fed - we're now facing the probability of stagflation.Fixed
 
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psholtz
Posts: 101
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A large bank is about to go bust...we're not going to tell you which one

September 15th, 2008, 11:27 pm

QuoteOriginally posted by: penguinawhoever is to blame - and I personally blame the central banks, especially the Fed - we're now facing the probability of a depression.Yes, I think we've been in a depression for a whle.Classically, a depression is defined as a contraction in the money supply (or, in our brave new world, the credit supply). This began in about August 2007.
Last edited by psholtz on September 15th, 2008, 10:00 pm, edited 1 time in total.
 
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penguina
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A large bank is about to go bust...we're not going to tell you which one

September 15th, 2008, 11:48 pm

QuoteOriginally posted by: psholtzQuoteOriginally posted by: penguinawhoever is to blame - and I personally blame the central banks, especially the Fed - we're now facing the probability of a depression.Yes, I think we've been in a depression for a whle.Classically, a depression is defined as a contraction in the money supply (or, in our brave new world, the credit supply). This began in about August 2007.I agree with the deflationary scenario but where are you getting your money supply figures from?
 
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KackToodles
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A large bank is about to go bust...we're not going to tell you which one

September 16th, 2008, 5:30 am

QuoteOriginally posted by: psholtzThere are a great many people who reap great fortunes when bubbles pop. This has been understood for a long time.. that's right. we should all celebrate when the black swan event happens because at that instant we will be rich!
 
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TraderJoe
Posts: 11048
Joined: February 1st, 2005, 11:21 pm

A large bank is about to go bust...we're not going to tell you which one

September 16th, 2008, 6:55 am

QuoteOriginally posted by: KackToodlesQuoteOriginally posted by: psholtzThere are a great many people who reap great fortunes when bubbles pop. This has been understood for a long time.. that's right. we should all celebrate when the black swan event happens because at that instant we will be rich! Just hope Taleb's got his money where his mouth is .
 
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daveangel
Posts: 17031
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A large bank is about to go bust...we're not going to tell you which one

September 16th, 2008, 10:04 am

QuoteOriginally posted by: TraderJoeQuoteOriginally posted by: KackToodlesQuoteOriginally posted by: psholtzThere are a great many people who reap great fortunes when bubbles pop. This has been understood for a long time.. that's right. we should all celebrate when the black swan event happens because at that instant we will be rich! Just hope Taleb's got his money where his mouth is .I wish you would put something where your mouth is !
knowledge comes, wisdom lingers
 
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CrashedMint
Posts: 2591
Joined: January 25th, 2008, 9:12 pm

A large bank is about to go bust...we're not going to tell you which one

September 16th, 2008, 10:22 am

QuoteOriginally posted by: TraderJoeQuoteOriginally posted by: KackToodlesQuoteOriginally posted by: psholtzThere are a great many people who reap great fortunes when bubbles pop. This has been understood for a long time.. that's right. we should all celebrate when the black swan event happens because at that instant we will be rich! Just hope Taleb's got his money where his mouth is .Yup, he is long many many unknown unknown calls. o_O
 
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ppauper
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Joined: November 15th, 2001, 1:29 pm

A large bank is about to go bust...we're not going to tell you which one

September 16th, 2008, 12:31 pm

QuoteOriginally posted by: daveangelWho cares what the ass Greenspan thinks ? If he calss it a 100 year storm then he can excuse himself. the problem was created in 2003 when he could face the prospect of inflation dropping to 1% and created a massive liquidity bubble. Idiotindeed.He needs to step up to the plate and admit his responsibility for the current situation
 
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psholtz
Posts: 101
Joined: May 5th, 2007, 4:07 am

A large bank is about to go bust...we're not going to tell you which one

September 16th, 2008, 2:36 pm

QuoteOriginally posted by: KackToodlesQuoteOriginally posted by: psholtzThere are a great many people who reap great fortunes when bubbles pop. This has been understood for a long time.. that's right. we should all celebrate when the black swan event happens because at that instant we will be rich! You may become rich as a consequence of such events, but only if you've forseen the event coming and have properly positioned yourself to take advantage of it..
 
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psholtz
Posts: 101
Joined: May 5th, 2007, 4:07 am

A large bank is about to go bust...we're not going to tell you which one

September 16th, 2008, 2:42 pm

QuoteOriginally posted by: penguinaQuoteOriginally posted by: psholtzQuoteOriginally posted by: penguinawhoever is to blame - and I personally blame the central banks, especially the Fed - we're now facing the probability of a depression.Yes, I think we've been in a depression for a whle.Classically, a depression is defined as a contraction in the money supply (or, in our brave new world, the credit supply). This began in about August 2007.I agree with the deflationary scenario but where are you getting your money supply figures from?If you're asking where I get August 2007 as the date on which the credit crunch began, there are various and sundry sources. Here is one:QuoteIt was, however, the day the world changed. As far as the financial markets are concerned, August 9 2007 has all the resonance of August 4 1914. It marks the cut-off point between "an Edwardian summer" of prosperity and tranquillity and the trench warfare of the credit crunch - the failed banks, the petrified markets, the property markets blown to pieces by a shortage of credit.http://www.guardian.co.uk/business/2008 ... ankingMost people seem to be pegging August 9, 2007 as the day the liquidity crisis began in earnest.
Last edited by psholtz on September 15th, 2008, 10:00 pm, edited 1 time in total.
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