Now vs 1907 Bank Panic?

Discussion in 'Economics' started by turkeyneck, Mar 14, 2008.

  1. gaj


    i believe in the 07 panic there also was different stock prices depending on delivery dates...i know there was in the 19th century ones.
  2. You mean stock futures? Equities don't have delivery dates, you are buying a portion of a company
  3. gaj


    no, these weren't stock futures.

    it was based on delivery date - ie. you sell the stock today, and get the money today, you get one price per share. get the money tomorrow, you get a different price; get the money on delivery date, you get another price.
  4. 1907 was a "simpler" time. Today, there's too much complexity of instruments and ownership for any one individual to unite people. We'll see.
  5. More complex ? today?

    Shit, its the same game, diffrent time.

    The 1907 rush will happen. That is one reason why BS went under, investors pulled out, customers pulled out. PERIOD.

    This is the first of Many.

    To believe that BS is the only "BROKER/BANK" in trouble.....your the same fools we believe that NO RECESSION is possible.
  6. 1) You said "your" when you should have said "you're".
    2) Today's "game" is mostly similar to 1907, agreed.
    3) Complexity of instruments has to do with derivatives that not even the "experts" understand and whose liquidity has disappeared.
    4) Complexity of ownership has to do with institutional investors and funds who represent other people, institutions & funds and on and on. It's not as simple as Joe Blow who keeps his shares at his broker.
  7. Yes, I used your instead of you're. Good eye.

    ALL your points from there on are valid.


    "During the call, Schwartz said the firm's liquidity crunch hit Thursday, when many customers demanded cash after hearing rumors of trouble at Bear Stearns all week"

    Thus, first the "rush" to take out their money. This will continue and spread to other banks and brokers. I'm sure it's happening as we speak.

    Second, the Leverage used in the banking system under the radar with options has yet to surfice.

    CDOs, and now the "SHeoople' are rushing in to take their money. Wait to the "OPTIONS" issue hit the main press and people panic.

    IT's over. There will be huge liquidations this month and through out the summer.

    Capitulation is around the corner.

    Don't fool you're self........

    America is FUBARED and we all will pay the heavy price.
  8. Where will people put all this money they take out? Under their mattress?
  9. in gold of course, where have you been?
    #10     Mar 14, 2008