All Posts Tagged With: "LEH"
The Trouble with Trillions
For about 10 years Simon Jenkins and I were both writing columns for the London Times. Simon is still writing a column for The Sunday Times, but has shifted his weekly column to The Guardian. However, he has written something in The Sunday Times that has provoked a very interesting reply from a reader, a copy of which has been sent to me.
Why Fed Regulation of Former I-Banks Is No Bad Thing
The death the the US investment bank is greatly exaggerated, says Lynn Carpenter in Investor’s Daily Edge. Raymond James (NYSE:RFJ), Piper Jaffray (NYSE:PJC), Canaccord Adams are still in business. Some of the others didn’t really disappear. They’re either now paired with a commercial bank, like Merrill Lynch (NYSE:MER) or have turned themselves over the the Fed for regulation, like Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS). This, says Lynn is no bad thing…
The US Will Never Be Able to Pay Off its Debts
We were all misled by the assurances of ‘experts’ over this crisis, says Gary North in The Daily Reckoning. The $700 billion Paulson plan will not be the last bailout. And the ever-growing national debt will never be paid off with the US dollar at its present value. Gary says it is time to name and shame those who tried to deceive us…
Bailout Plan Means Paying Above Market Price for Junk Debt
Are the American people really gullible enough to buy into Hank Paulson’s $700 billion bailout plan? Unfortunately, it seems so. After all, most bought into the Patriot Act in 2001 and the Federal Reserve Act in 1913. The consequences of Paulson’s bill, however, will be dire, says Dan Denning. For a start, it will involve the government buying bad debt from banksat “hold-to-maturity” prices - that is, a ways above their market price.
Guillotine Over Wall Street
Let’s start at $500 billion. Why? That was the figure Paulson’s emergency elixir was thought to cost…as recently as Friday. In a characteristically misguided effort to restore calm to the markets, the federal government proposed a plan that involved purchasing a half trillion dollars of carcinogenic mortgage-backed assets.
Japan’s Nomura Snaps Up Lehman
Nomura Holdings Inc. (ADR: NMR) yesterday (Monday) snapped up bankrupt Lehman Brothers Holdings Inc.’s (OTC: LEHMQ) Asia assets, and is close to inking a deal for its European units as well. Tokyo-based Nomura will pay $225 million for Lehman’s Asia-Pacific operations. As part of deal, Nomura will take on 3,000 former Lehman employees in the region.
How Greed and Self-Delusion Destroyed Wall Street
Wall Street has changed beyond recognition over the last couple of weeks. As of today not one of the “big five” independent investment banks is left standing. According to Bill Bonner in The Daily Reckoning, the big banks have only themselves to blame. They began to believe they were invincible… but of course they were nothing of the sort.
4 Real Assets Set to Profit from the Death of the Dollar
The headlines are dramatic. Short selling banned for 799 financial institutions. $50bn injected into money markets. Plans for a massive bailout fund to clear the system of bad debt and stabilize the housing market.
The Unholy trinity - the Federal Reserve, SEC and Treasury - has pulled out all the stops this time. But while US stocks soar, Justice Litle says the government’s bailouts are a death blow for the dollar.
This makes real, tangible assets highly attractive. Justice says the most profitable investments going forward will be energy, infrastructure, hard assets and non-US growth plays.
Government Bailout May Only Be a Short-Term Fix
Yesterday, central banks launched a coordinated effort to flood global money markets with U.S. dollars in hopes of easing strained financial systems in danger of freezing up entirely. However, many analysts see this as only a short-term solution that will lower overnight lending rates but fail to assist financial institutions with longer-term cash needs, says Jason Simpkins in Money Morning.
Government Intervention?
Having savaged the U.S. financial sector since it surfaced in the summer of 2007, the credit crisis evolved into a crisis of confidence - which has manifested itself as a liquidity crisis. And that liquidity crisis is no longer confined to the financial sector. It’s spilled over into the energy sector, as well.
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