Bear Stearns got a better deal

[makeshift]

$10 a share this morning...i fucking hate myself...i should have just bought at $4-5 seems so fucking rigged...it was no coincidence that the offers happened during weekends....shady business...

[ryph]

or another derivatives blowup could have happened and that $2 went to 50cents. i wouldnt play around with these dead cat bounces in the financials hoping for some sort of bailout each time a bank goes under.

[makeshift]

yeah exactly why i didn't gamble...they didn't look like they were going to get a better deal...no one else would get the feds support etc etc...it really seems like insiders knew something though and nothing got leaked..or that the whole thing was manipulated

[makeshift]

i really wish i had friends in high places...insider trading is serious business i swear...especially regarding merges

[ryph]

insider trading isnt needed, just a fundamental knowledge of what the powers that be need accomplished, how they will act and when, then all that's left is to trade based on that. besides, its more fun that way. imagine how boring trading would become if you knew exactly what everything was going to do every day.

[makeshift]

yeah i'm just joking around..it probably would be boring after like a couple weeks..but i'm sure if you got a good tip and went all in and made a killing that would be exciting...probably not as exciting as having the foresight though

[timex]

that was sad they got bailed out. warren buffet needs to do more to help our damn economy.

[Omnis]

WB? Why?

If banks fuck up, let them die. It's that simple.

[ryph]

WB? Why?

If banks fuck up, let them die. It's that simple.

its a little more complex than that. there are 450trillion+, yes with a T trillion, highly leveraged outstanding over the counter derivatives contracts tied to crazy shit, many of which are mortgage bonds, insurance on those mortgage bonds, credit swaps etc...
the performance and value of these contracts are usually dependent on one other counter party. what theoretically could happen, is bear sterns defaults on a big mortgage bond contract and goes under. this BK now ripples through like dominoes exponentially, since if BSC is under, they cant perform on any other contracts, which makes tons of other banks also insolvent. think of it as a series of dominoes lined up starting with BSC. Bear topples over, then hits 2 other dominoes. those 2 dominoes then topple over into 4 and so on and so forth. what most likely happened, is this bear sterns bailout was in fact a bailout for JPMorgan judging by JPM's derivatives exposure.

this is a chart from a few months ago of the top credit derivatives holders (things like cc bonds, mortgages, car loans etc...)
http://ryphs.com/bank_derivatives.jpg

this is basically why the fed HAS TO keep lowering rates and dropping money billions at a time. if they dont the entire system implodes on itself.

[makeshift]

yeah the fed was trying to prevent the domino effect of a bank run. where people start pulling all their money out of banks and selling their bank stocks. then banks go bankrupt and have to retract their loans...and people start jumping out of windows. i'm not an expert but i think thats how it goes

[makeshift]

something just changed though and i think the fed will offer the same sort of bail out to other banks

[jet]

FUCK THE BOZOS

[timex]

well i don't follow the market too much. i just read whatever is on the business part of the paper, but warren buffet can afford to do more...and he should. he's the fucking richest man in the world.