IMO buffet rummors are greatly exagerated, don't think he would touch this. Did he ever come to the rescue of any other financial company who imploded? Is the $80 book value correct, nobody except those who can see the real numbers know. Billions have been pulled out of Bear so for sure they will have difficulty generating earnings like before, this is on top of an already difficult environment. http://www.bloomberg.com/apps/news?pid=20601087&sid=aYZCGOSAg8jQ&refer=home What ever happens a million eyes will be on BSC come Monday. On a side note: Yesterday was the first day I actually saw fear in the eyes of some talking heads in a long while.
Buffet...LOL. I've been trading WM a lot lately. I have my trade ticket set up on buy and sell side as usual. Watching the ticker alone, there is something unusual going on. I jump in. She goes parabolic in 5 minutes to $12.60. Then I see a news brief on Buffet/GS infusion of capital. Hmmm, smells like Bullshit. I gave it about 10 more minutes before I sold. My strategy of buy the rumor, sell the rumor or buy the pump sell the pump is paying off. Too bad Charlie G. didn't do a special at 3:30 and announce that publicaly or she could have kept running a la ABK style. Man BSC is going to be bitched slapped and thrown around in the coming days. One way or another they are gonna halt it. Depending on where most of the dumb money is bet on long or short end at the current time, the trade will backdoor them.
From watching these situations where stocks that get cut in half in one day, they almost never bounce back right away. Many of them just keep going down and eventually fade away. If they do come back, it is a painful crawl back to former levels that takes several months. They are so tempting to buy for the novice trading thinking that its a 50% discount but that's fools gold. In the case of Bear, this thing is kaput. Their balance sheet is just not strong enough to handle a fire sale in the credit markets. JP Morgan only decided to step in because the Fed is essentially giving them a put and backstopping any losses. The short side is the better bet in these situations, almost always.
This is a lie, buffet was never intrested at $120. there is a huge diffrence between facts and rumors. He has never expressed intrest in bear
Who in their right mind is going to do business with BSC over the next week or two. Its game over for BSC. There is going to be a run on the bank on Monday. I wouldn't be surprised if BSC issued a statement Monday saying they are suspending all withdrawals and going into a lockdown. Everyone is now looking out for the next casualty. LEH??
http://www.tradingmarkets.com/.site/news/BREAKING NEWS/647839/ Hows that for facts for you beyatch? Teach you to call me a liar.
That was an obvious pump and dump. No one serious believed it, and Buffett later denied he was ever interested in a stake.
get your facts correct and learn to read. my quote said "This is a lie, buffet was never intrested at $120. there is a huge diffrence between facts and rumors. He has never expressed intrest in bear" At no point did i call you a liar. and your story is not facts, its " may be considering buying and "Citing people briefed". this is a the definition of a rumor. But during an interview on Fox Business Network Thursday, Mr. Buffett denied the report, which said that he might buy as much as 20 percent of the Wall Street bank. âThat was an incorrect story,â he said. âWe were not taking a stake. That one had no basis.â http://dealbook.blogs.nytimes.com/2007/10/19/buffett-and-citic-deny-bear-stearns-talks/
"I thought i would throw that in there to remind some of you that buffet was interested at 120 last year." honestly. Regardless if he cared there or not, the world is a much different place then it was a 6months ago. The only thing people can say about companies in these type situations is "Buffet's coming in because it's a value play" This is what the insurance longs said, this is what the CFC longs said, and now it's what the BSC guys are saying. Spare me. BSC IS DONE. It'll take years..YEARS for Bear to repair this debacle if they are lucky enough to survive. And I don't believe they can or will. As Manni so correctly asked ... who's next?? LEH?? I agree. Spreads/CDS blew out on CFC back with CFC in the mid 20's and now they're done with only a BAC rescue propping them up. (does BAC still come to the rescue?? - will be interesting to see with Justice/FBI/ and every other government body probing around)..then early last week spreads/CDS on BSC blew out and within days you see BSC facing solvency issues. Then on Friday, interestingly enough LEH blows out across the board - hmmm?? The point is once you enter a situation of spreads/cds blowing out, the death spiral you are in becomes self-fulfilling. I work on a desk and when CFC was going down you can damn well be sure our traders were saying "hey - if you can find a bond from somewhere other than CFC find it, bc if we can avoid doing a trade with them we should bc there's a risk they won't be able to deliver and there's no reason for us to take that risk". That's what happened with CFC, that is what happened with Bear, and that is what could very well happen with LEH. Interesting enough LEH secured a deal on a $2bln line of credit on Friday -hmmmmm??? very interesting. I have no ill will on any of these guys, bc is my mind what's bad for one could snowball into bad for all. Furthermore I don't think people have a true respect for amount of shit the street's in. As Icahn said a couple months ago "We're on a precipice." The bond market has been screaming about this for over a year. This thing is getting very serious very quickly and the fact that Bear is done and another is possible all within 4 or so days should be concern for all. Cross your fingers