"THE MARKET... consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Alexander Elder

Sunday, March 16, 2008


JPMorgan to acquire Bear Stearns

see: New Zealand Herald (includes Reuters video)
see: Investor takes $1 Billion hit
see: Repricing Risk (video)
see: $2 a share?

Citigroup: $18bn
Merrill Lynch: $14.1bn
UBS: $13.5bn
Morgan Stanley $9.4bn
HSBC: $3.4bn
Bear Stearns: $3.2bn
Deutsche Bank: $3.2bn
Bank of America: $3bn
Barclays: $2.6bn
Royal Bank of Scotland: $2.6bn
Freddie Mac: $2bn
JP Morgan Chase: $3.2bn
Credit Suisse: $1bn
Wachovia: $1.1bn
IKB: $2.6bn
Paribas: $197m
Source: Company reports
via BBC News


Phil Davis said...

Terrific post and this is but the tip of the iceberg. With practically every major player in the financial markets writing off these losses, is it any wonder why no bank in the world is anxious to extend credit (loan money) to any of its competitors?

Just how big is that US housing crisis - that which drives the country's entire economy? US banks, forced to loan money using their own deposits, are only writing loans for AAA borrowers on properties that are priced substantially below market. Why? No one, not even the US federal government is going to invest in real estate that still will likely lose another 20-25% and that won't be changing any time soon.

The US economy and the USD are going to be in the tank for years. Safe to say that the long term play is anything but the USD.

Charles Longfellow said...

Well said, and yet, what currency would I buy? Perhaps the flight to anything else, although justified, is still a gamble. Maybe I'm getting too nervous, but even gold looks..., no, I take that back. Gold looks pretty darn good right now!

Charles Longfellow said...

...which means, if I had to choose a currency to live with, trade with, and/or stuff under my mattress, perhaps I should be thinking Swiss Franc?

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