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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: bearjones who wrote (5993)	8/16/2007 10:33:41 AM
From: RonMerks	Respond to of 50288

Rate cuts? I kind of agree with Slider on this (I think?) if I'm following him here. 1. The Fed can't come to bail out the subprimes and the hedge funds that used all this ridiculous leverage. 2. They need to let those that deserve to fail- fail. 3. Steve Leesman on CNBC has repeated that the Fed will only draw a ring around the US Money Center banks. Makes sense to me. The hell with Countrywide, or Thornburg. Wells Fargo, or Citi, or Merrill, or Goldman will snap up what's left and the good old boy banker network makes a fortune. You think those East Coast bankers have ANY sympathy for Mr. California-cool, Angelo Mozillo with his George Hamilton suntan and his 1/2 Billion personal fortune? HELL NO. But, let precious Wall Street insiders like LTCM, or Lehman, or even Bear get in trouble- and the bailout comes running. I think we're seeing great drama and a little 'inside baseball' here about old money vs. new money and how old money nearly always wins. As Slider pointed out- it's 1998 subprime deja vu again. The big banks will snap up Thornburgs, or Countrywide's most pristine paper for pennies on the dollar, or buy them out at a deep discount. The key is to not chase the slime, but average into the prime. Hey, Slider- you made a rhyme! Sell the slime- buy the prime. Has a nice ring to it <vbg> You know what else I think. Maybe Countrywide will become the posterchild for this entire mess. It's a household name. California based. The nations largest prime/subprime lender and its failure would leave a permanent impression on CEO's for the future. Maybe the failure of Countrywide will be the turning point. A "name" must fail and CFC is a household name. CFC and one of the large Homebuilders. Maybe that will mark this page in financial and market history. Ron