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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Paul Kern who wrote (84217)	7/26/2007 5:51:30 PM
From: benwood	Respond to of 110194

I think we are just one or two big startles away from a stampede for the exits.

To: Paul Kern who wrote (84217)	7/26/2007 5:52:55 PM
From: orkrious	Read Replies (1) \| Respond to of 110194

i bid 300 Dow points -- trotsky, 15:56:42 07/26/07 Thu for a Paulson containment suit. they said i can have one for free. it seems to be leaking a bit though. everything's fine..... -- trotsky, 15:48:07 07/26/07 Thu unanimous judgment of analysts on TV...this is just another dip you should buy. it's merely the 'restoration of sanity in the debt markets' project in action. so when debt markets go 'no bid' they are considered sane. this might scare the shorts a bit, due to well-learned Pavlovian reflexes. there have been some extremes in market oscillator type data today that would normally - normally, stressed - lead to a bounce at a minimum. if they don't, then you know there's real trouble. well... -- trotsky, 15:36:16 07/26/07 Thu thank god the sub prime troubles are well contained! imagine what might happen if they weren't contained so well. @markets -- trotsky, 14:19:34 07/26/07 Thu too bad the gold stocks are caught up in a market-wide mini-crash - just as it seemed our party was finally getting going. anyway, this is the kind of mass-correlated hyper-volatility event where nothing escapes. i'm looking at BSC - are they in more trouble than they have let on? the stock is in free-fall today. flight to garbage in the stock market -- trotsky, 10:30:57 07/26/07 Thu the by far most expensive stocks, AAPL, GOOG, BIDU, RIMM - all get bought. this is an exact replika of the 1998 crisis, when stocks like DELL, AOL, etc. rose for two weeks longer than the rest of the market, while bank stocks began to go into free-fall. in the end, the tech darlings suffered 50% hair-cuts though. gravity can only be temporarily defied.

To: Paul Kern who wrote (84217)	7/26/2007 6:28:31 PM
From: Paul Kern	Respond to of 110194

Bear Stearns Takes Control of Assets From Hedge Fund (Update1) By Yalman Onaran July 26 (Bloomberg) -- Bear Stearns Cos. said it took control of debt securities held by one of its failed hedge funds to better manage their sale and guard against further erosion in their prices. Bear Stearns, which had offered to assume $1.6 billion of debt from the High-Grade Structured Credit Strategies Fund last month, will continue to pursue an ``orderly liquidation'' of the assets, spokesman Russell Sherman said today in an interview. Taking control of the securities will allow Bear Stearns to establish hedges to ``protect against future price declines,'' he said. The New York-based firm told investors in the High Grade fund and a second fund last week that they will get little if any money back after ``unprecedented declines'' in the value of securities used to bet on subprime mortgages. Bear Stearns has said it expects to lose no money from a loan it made to the structured-credit fund. ``We don't anticipate any material change in financial exposure to Bear Stearns as a result of this action,'' Sherman said. The two Bear Stearns funds invested in collateralized debt obligations, or CDOs, which repackage bonds, loans, derivatives and other CDOs into new securities. CDO prices have tumbled as surging defaults on U.S. home mortgages to subprime borrowers decreased investor appetite for risk. Shares of Bear Stearns have lost 24 percent this year on concern the troubles in the mortgage market will hurt earnings. The firm was the largest underwriter of mortgage-backed bonds in the U.S. in the last two years. It has dropped to No. 2 this year, ceding the top spot to rival Lehman Brothers Holdings Inc. Shares of Lehman have dropped 17 percent. Bear Stearns shares lost $5.03, or 3.9 percent, in New York Stock Exchange composite trading today to $124.25. To contact the reporter on this story: Yalman Onaran in New York at yonaran@bloomberg.net . Last Updated: July 26, 2007 17:09 EDT