Mish's Global Economic Trend Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: CageRattler	3/14/2008 2:51:33 PM
	Read Replies (2) of 116555

`Excellent point from Sanford Bernstein analyst. `It strikes me that the issue that Bear has right now is one of gaining confidence in the fixed-income markets. The Fed has provided the funding that's going to keep them alive. In other words, we don't have a funding run right now, but the problem is how do you re-start a trading operation? We really don't have any examples of that being successful in the marketplace. Will you do that foreign exchange trade with Bear? Will you do that bond trade with Bear? And the answer is no because you don't know whether Bear's going to be there and let's recognize that there's counterparty clearing risk that occurs. ``So the issue with Bear is not one of catastrophic failure today, the issue is really one of how the censored do you make any money if nobody will do any deals with you? This is one that has to be the subject of the entire weekend. They can't issue bonds in the marketplace, trading volumes are going to drop like a stone and the hedge funds are all going to go elsewhere quickly in terms of doing their prime brokerage business.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next