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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (168905)	12/4/2008 11:42:30 AM
From: RockyBalboa	Respond to of 306849

While I would agree that Bear could have been an easy slaugher, it was not possible or opportunistic for two reasons: -it was too early. Back then when Bear failed, the fed and treasury was still asleep at the switch; or more precisely, hardly anyone could imagine how bad things will get in a few months... <<< you remember, on this thread...people posted: a quick patch here, a quick fix there, by the treasury and the inevitable day of reckoning will be even harder and farther reaching. How true....>>> -Bear was a US bank without international assets. So a looting of bear was not ín the interests of the treasury. Lehman had assets in London whcih they swept out, had a 5B+ (Euros) guarantee by the German FDIC, etc. it was opportunistic to let it fail and seize assets from abroad. The treasury had publicly stated that they expect participation from the EU and UK. Lehman was a way to enforce such a thing. Lehman was, like bear infested with financial cancer, but this cancer tampered everyone even governments (like ours) and had a global reach. It had to be stopped at one point.