Discussion in 'Stocks' started by ASusilovic, Sep 14, 2007.
I like PANIC DAYS ! YOu too ? Buying at 484,50 and more if price fells further
Credit Suisse says Northern Rock buyout a possibility
Credit Suisse, which lowered Northern Rock's price target to 500 pence from 745 pence, said the distressed U.K. lender may get a buyout. "We have argued against an acquisition of the group recently given we didn't feel the company was trading as a distressed asset. However, if the share price falls a lot further, we think bid interest becomes increasingly likely. The loan from the Bank of England is temporary. Fundamentally Northern Rock depends on debt investor confidence in its model, and without that, there is no model," the broker said
same as countrywide.
sell the stock while you can.
cant raise funds for its business.
the infection continues much to the annoyance of a lot a posters who seem to think this subprime issue is a minor hurdle before the advance of the dow.
day by day week by week companies and funds using an access to cheap money model will get hit hard.
the irony is the central banks are under pressure to cut rates and some banks in london are offering increased savings rates to attract money.
northern rock was offering 6.71% on savings accounts to attract money last week.
now we know why.
they can offer 10% or 20%
you wont get your money back.
For years I was reading www.prudentbear.com to nourish my bear analysis. The contributors spoke of subprime, SIV, CDO, ABS, carry trade, overleveraged speculation in the credit markets, long before these subjects were even mentioned in the economic media.
They were right ! All these hot air credit bubble schemes are slowly collapsing in front of us. It's really like watching a train wreck in slow motion.
i suggest to sell everything you have - the world is going to collapse and we are going back to sheds. Put proceeds into short term treasury paper - possibly USD denominated. You get sweet sub 4%.
i read this website too.
he nailed it just took a while to get there.
doug noland is a very smart guy and was knocked for years by mainstream economists who dismisssed him as a pessimist.
one thing thats great about him when asked recently
' you guys must be loving this at the moment'
he replied ' not really - if im right and i think i am with whats going on at the moment then things will get a lot worse than this - i actually kind of hope im wrong'.
A question for ASusilovic;
What would make would you reconsider your longs?
If you're right then great, but otherwise at what price will you throw in the towel?
Being right like a broken clock doesn't pay my bills. Question is: Did they make any money? Probably not.
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