I knew about the CE w/downs last week, and I figured more problems from the other firms. But this smells disaster. What trader doesn't know to walk away from a losing position. Instead, to protect their own dogs, they have to chip in to the other idiots. That's like me getting a margin call because I'm long AIG and won't quit it, and I have to meet mine, and yours, and another guys. This is insanity. They need to go back and retrieve some of those bonuses. Spit in the bucket now, but jeeze!!!! This is armeggedon stuff.
You have been registered on ET since 2002 After 6 years of learning and experience, this is what you come up with
http://finance.yahoo.com/q?s=LHBI.PK Yahoo is all set up for Monday trading. I really don't laugh at anyone's problems. I 've had my own,a nd they aren't that funny. But, I did smirk a bit here.
I just hope the some good new comes out other wise -? Forgot Leh It will take the whole financial market down with it in the drain
Kosinc, your poor command of the English language is seriously starting to give me headaches. Whatever thirld-world (sorry "emerging") dump you hail from, you would be better off directing your efforts towards improving your home country's education system rather than waste time polluting this forum with nonsensical drivel. On the other hand, if for some unexplained reason you have been allowed to immigrate to the US and are now one of the minorities Obama/McCain are trying to suck up to in order to get elected, well it just goes to show why the country is going down the toilet by opening its doors to more and more of the ignorant huddled masses.
you gave yourself away. "I am 200% long on full margin." i would suppose u have less than $25000 in your account or you would have said 400% as a patterned day trader
I don't trade equities, but isn't margin 200% on overnight trades? I read Cutten's post as referring to a swing trade, but he can speak for himself.
u are correct except for 1 thing. by the end of the day you must be down to 200%. then at the beginning of the next trading day you raise your position to the 400% level and repeat the process.
i would not be surprised if LEH goes away for below $1. there is no reason to pay more. on top of that the buyer should get $5b for neuberger - these monies should be in turn used for replenishing the buyer's capital. buyer should also commit to provide more additional capital via issuance of their own stock/prefs. for that the buyer may take only the first (large) loss on carefully selected LEH portfolio of toxic securities. consorcium of banks could insure the senior part... let's see tomorrow....
the problem is that the buyer will now be taking on Lehman's enormous amount of debt. thats why i do not think its a bargain. i think it will go for less than 5 bucks,maybe under 3.