A flood of Margin call says J P Morgan!

[Mega]

Oh Dear!
http://news.yahoo.com/s/nm/20080308/...osses_jpm_dc_1
Mega

[GRG55]

Re: A flood of Margin call says J P Morgan!

Oh Dear!
http://news.yahoo.com/s/nm/20080308/...osses_jpm_dc_1
Mega

Mega: This is the same article that was already posted here:
http://www.itulip.com/forums/showthr...29807#poststop

[Mega]

Re: A flood of Margin call says J P Morgan!

Sorry, early Sunday start my mistake.
Mike

[GRG55]

Re: A flood of Margin call says J P Morgan!

Sorry, early Sunday start my mistake.
Mike

No such thing as a mistake Mike. Just thought you'd be interested in the other related stuff on that other thread sinc the same article caught your attention.

[Jim Nickerson]

Re: A flood of Margin call says J P Morgan!

NEW YORK (Reuters) - Wall Street banks are facing a "systemic margin call" that may deplete banks of $325 billion of capital due to deteriorating subprime U.S. mortgages, JPMorgan Chase & Co (JPM.N), said in a report late on Friday.

http://www.investmentpostcards.com/2...2008/#more-628

Bill King (The King Report): What do those not panicking see?
“James Stack of InvestTech Research writes, ‘To find the last time the Fed made two discount rate cuts within 10 days, you have to step all the way back to the financial panic of 1914. One thing is certain; the government entities are running scared. What do they see that has them so panicked?’

“Jim, the question is: What do those not panicking see? … The NYSE closed for 4.5 months in 1914.”
Source: Bill King, The King Report, March 6, 2008.

I think Stack's observation and question is pertinent. To me King's question suggests that things are not as bad as the Fed seems to think or perhaps more correctly as the Fed may know.

Possibly those who are not panicking are igonorant because the aren't seeing anything that might represent reality.

I don't know how bad things may become. I am not an optomist in general, but my inclination is that things are going to get much worse for Americans.

[Jim Nickerson]

Re: A flood of Margin call says J P Morgan!

http://www.investmentpostcards.com/2...2008/#more-628

“The Chairman’s suggestion is essentially to reduce the negative spill over effects of the housing market crisis and contain the adverse effects on the larger macroeconomy. He also added that ‘this arrangement might include a feature that allows the original investor to share in any future appreciation.’

“The implementation of this strategy will be complex but could be worthwhile considering because there are benefits for both the lender and the borrower – the lender is minimizing loss instead of facing a spate of defaults and foreclosures, and the borrower and community are saved from imminent economic disaster. … it is becoming abundantly clear that the housing market crisis and credit crunch has a larger role in the near term path of the economy than the Fed is willing to admit in its forecast about the economy.”
Source: Asha Bangalore, Northern Trust - Daily Global Commentary, March 4, 2008.

[jk]

Re: A flood of Margin call says J P Morgan!

http://www.investmentpostcards.com/2...2008/#more-628


I think Stack's observation and question is pertinent. To me King's question suggests that things are not as bad as the Fed seems to think or perhaps more correctly as the Fed may know.

Possibly those who are not panicking are igonorant because the aren't seeing anything that might represent reality.

I don't know how bad things may become. I am not an optomist in general, but my inclination is that things are going to get much worse for Americans.

i am much less sanguine than mr. king. what they didn't have in 1914 was a large coterie of professional money managers who were more concerned with career risk than conservation of capital. note mr. prince's remark that as long as there was 'music,' citi would keep on 'dancing.' to refrain from 'dancing' invites RELATIVE underperformance as long as the 'music' continues, and thus career risk for money managers. when the music stops they will retire to their hamptons or greenwich estates, and leave investors in tatters.