LQD: Learning from the Swedish banking crisis | 30 comments (30 topical, editorial, 0 hidden)

Re: The trillion dollar bailout (4.00 / 7)

I don't know why a medium-sized institution whose

main businesses included capital markets (equities and fixed income), investment banking, wealth management, and prime brokerage clearing services.

is critical.

Retail banking and commercial banking are critical, Bear Stearns engaged in none of them.

It'd be nice if the battle were only against the right wingers, not half of the left on top of that — François in Paris

by Migeru (migeru at eurotrib dot com) on Tue Mar 18th, 2008 at 09:28:26 AM EST
[ Parent ]

Re: The trillion dollar bailout (none / 1)

That was my thought.

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Tue Mar 18th, 2008 at 09:34:35 AM EST
[ Parent ]

Re: The trillion dollar bailout (4.00 / 3)

Critical to whom?

The people who own it all, of course.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Tue Mar 18th, 2008 at 09:40:29 AM EST
[ Parent ]

Re: The trillion dollar bailout (none / 1)

Fool, watch the pendulum on teevee and repeat, Bear is too big to fail.

Be nice to America. Or we'll bring democracy to your country.

by Drew J Jones (pedobear@pennstatefootball.com) on Tue Mar 18th, 2008 at 09:50:48 AM EST
[ Parent ]

You are forgetting the real "third rail" (4.00 / 2)

in American politics and economic policy: rich people must not be taxed, and rich people must not lose money.

Why? Because the wealthy pay for elections in Amerika, every part of them which count.

The Hun is always either at your throat or at your feet. Winston Churchill

by r------ on Tue Mar 18th, 2008 at 10:42:31 AM EST
[ Parent ]

Re: The trillion dollar bailout (none / 0)

Well, now, that's JP Morgan.

The previous owners got kicked out and they are not happy.

by Francois in Paris on Tue Mar 18th, 2008 at 03:35:07 PM EST
[ Parent ]

Re: The trillion dollar bailout (4.00 / 2)

All the more frightening that Bernanke is wasting unbelievable amounts of rate & treasury ammo, defending doomed outposts, and he will be powerless when the real citadels will collapse (think Citigroup, largest bank of the free world ™ by balance sheet).

The guy may have done a lot of econometrics, but he has never read sun tzu.

Pierre

by Pierre on Tue Mar 18th, 2008 at 11:04:34 AM EST
[ Parent ]

Re: The trillion dollar bailout (none / 0)

I keep hearing hints that Citibank probably isn't worth defending, apart from a purely symbolic effort.

Any idiot can face a crisis - it's day to day living that wears you out.

by ceebs (ceebs (at) eurotrib (dot) com) on Tue Mar 18th, 2008 at 11:10:57 AM EST
[ Parent ]

Re: The trillion dollar bailout (none / 1)

It appears JP Morgan was interested in buying Bear Stearns primarily because of its prime brokerage business. Should (say) Lehman Brothers fail we'd be talking some serious investment banking (Lehman Brothers is the largest underwriter of mortgage-backed securities), but again still not retail or commercial banking which are the sectors that, if they fail, can send the economy into depression all by themselves.

It'd be nice if the battle were only against the right wingers, not half of the left on top of that — François in Paris

by Migeru (migeru at eurotrib dot com) on Tue Mar 18th, 2008 at 11:14:10 AM EST
[ Parent ]

LQD: Learning from the Swedish banking crisis | 30 comments (30 topical, 0 editorial, 0 hidden)

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