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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (345742)	8/4/2007 9:17:39 PM
From: combjelly	Read Replies (1) \| Respond to of 1578127

"We are in a very precarious position. " How is this possible? We've had all our economic experts prove to us how robust the economy is.

To: Road Walker who wrote (345742)	8/7/2007 12:12:40 AM
From: tejek	Read Replies (1) \| Respond to of 1578127

re: with that piece of info, I now join the camp of housing bears......have any room. ;-) Sell you some "room" cheap. Seriously, it's not so much housing itself, but how the market reacts to so much bad debt. The big bond guys are unique; if they stop the flow then there is a cascading effect. We are in a very precarious position. Well, I learned something interesting this afternoon. Like I said previously, I was in on the Bear Stearns CC last Friday and heard the fear in their voices. According to what I read today, it turns out that BSC is feeling so much pain because the other major brokers like MER and GS and LEH refuse to help it. Back in the late 90s when Long Term Capital got into financial trouble, prompting a crisis in the markets, the major brokers like GS, MER and BSC got together to try and workout a financial plan to solve the Long Term capital 'problem'. It was decided that the 4 or 5 major brokers including BSC had to come up with $250 million apiece. All complied at first but then BSC waffled, necessitating that the other brokers each come up with more than the original $250 million to make up for BSC's pullout. The author compared these brokers to a financial mafia. When BSC pulled out, the other brokers were infuriated. Flash forward to 2007........some of the brokers have been on the other side of BSC trades and have done whatever they can to frustrate those trades. And when BSC called out for financial help, the other brokers ignored the call. The author claims we are now seeing the beginning of the BSC death spiral.