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wazu
09-14-2008, 10:35 PM
I recommend we all start growing potatoes in our backyards.

http://online.wsj.com/article/SB122142278543033525.html?mod=special_coverage

Bank of America Reaches Deal for Merrill
By MATTHEW KARNITSCHNIG, CARRICK MOLLENKAMP and DAN FITZPATRICK
September 15, 2008

In a rushed bid to ride out the storm sweeping American finance, 94-year-old Merrill Lynch & Co. agreed late Sunday to sell itself to Bank of America Corp. for roughly $50 billion, including restricted stock and vested stock options.

The deal, which was being worked out in 48 hours of frenetic negotiating, could instantly reshape the U.S. banking landscape, making the nation's prime behemoth even bigger. The boards of the two companies approved the deal Sunday evening, according to people familiar with the matter.

Driven by Chief Executive Kenneth Lewis, Bank of America has already made dozens of acquisitions large and small, including the purchase of ailing mortgage lender Countrywide Financial Corp. earlier this year. In adding Merrill Lynch, it would control the nation's largest force of stock brokers as well as a well-regarded investment bank.

A combination would create a bank of vast reach, involved in nearly every nook and cranny of the financial system, from credit cards and auto loans to bond and stock underwriting, merger advice and wealth management.

It would also show how the credit crisis has created opportunities for financially sound buyers. At $44 billion, or roughly $29 a share, Merrill would be sold at about two-thirds of its value of one year ago, and half its all-time peak value of early 2007. Merrill shares changed hands at $17.05 each on Friday, after falling sharply in the wake of Lehman's looming demise.

"Why would Bank of America do this?" said analyst Nancy Bush at NAB Research LLC in Annandale, N.J. "Ken Lewis always likes to buy the biggest thing he can. So why not this? You are master of the universe, basically."

Bank of America and Merrill Lynch wouldn't comment on any discussions.

Merrill would give Bank of America strength around the world, including emerging markets such as India. And Merrill is also strong in underwriting, an area Bank of America identified last week at an investors' conference where it would like to be more aggressive.

Dramatic Deal

A deal would be all the more dramatic because Merrill, upon the arrival of Chief Executive John Thain, did more than many U.S. financial giants to insulate itself from the financial crisis that began last year. It raised large amounts of capital, purged itself of toxic assets and sold big equity stakes, such as its holding in financial-information giant Bloomberg. That Merrill has opted to sell itself thus underscores the severity of crisis.

The integration of Merrill, known for its proud, and sometimes testy, brokerage force, could turn out to be the biggest test of Mr. Lewis's career. Typically, the bank has made one big deal and then taken time to carefully merge the two institutions. But in recent years, acquisitions have come at a furious pace. In 2004, the bank bought FleetBoston Financial Corp. A year later, the bank agreed to buy MBNA Corp., the credit-card firm. In 2007, Bank of America bought Chicago's LaSalle Bank as part of the break-up of Dutch bank ABN-Amro Holding NV. Then came this year's purchase of Countrywide.

As of Sunday evening, a deal had not yet been signed, said people briefed on the discussions. And other last-second bidders could emerge from the woodwork. Yet with news of the Bank of America talks breaking Sunday, it became all the more difficult for Merrill and Mr. Thain to rebuff a deal. Should the talks collapse, most on the Street were expecting Merrill's shares to fall even further amid widespread worries about independent broker-dealers.

Inside the Fed meetings in Lower Manhattan this weekend, there was a general worry that Merrill could be the next to fall after Lehman. Through the weekend, federal officials including Federal Reserve Bank of New York head Timothy Geithner made it clear that they strongly encouraged a deal to sell Merrill, said people familiar with the matter said.

If struck, a deal would come together at breakneck speed. On Friday, Bank of America's top executives were pushing for a deal with Lehman Brothers, scrambling to perform due diligence on Lehman's books. Just 48 hours later, they were locked in discussion with Merrill and its top executives.

During the flurry of historic dealmaking this weekend, Merrill approached Morgan Stanley about a possible deal, which would have united two of Wall Street's oldest brands, according to a person familiar with the talks. But the talks didn't go anywhere because there wasn't enough time for Morgan Stanley to review the idea and Merrill wanted to do the deal quickly, this person said. Merrill was also stepping up talks with commercial banks both in Europe and the U.S. While Mr. Thain had once orchestrated a trans-Atlantic deal for his old firm, NYSE Euronext, in this race, a U.S. deal proved the quickest, best option for Merrill.

'The Ultimate Realist'

"I think John Thain at Merrill is the ultimate realist," Ms. Bush said, the analyst, who expected federal regulators to bless the deal by relaxing deposit limits for bank-holding companies. "He knows if Lehman goes under he is not far behind. He wants to cut the best deal he can."

In the past 15 months, Merrill and Lehman have both had tens of billions of dollars worth of risky, illiquid assets carried on balance sheets that were leveraged at a debt-to-equity ratio of more than 20 to one. When the credit crunch hit in mid-2007, the assets kept deteriorating in value and couldn't easily be sold, eating into both firms' capital cushion. Recently, Lehman's balance sheet topped $600 billion and Merrill's $900 billion.

Merrill's one-time chief Stan O'Neal was ousted in October 2007, and his successor, Mr. Thain, tried to repair the firm's balance sheet by arranging an infusion of more than $6 billion in capital starting last December by investors led by Temasek Holdings, a Singapore government investment fund.

But as the losses kept coming this year, Mr. Thain was forced in July to sell a huge slug of more than $30 billion in collateralized debt obligations at a price of just 22 cents on the dollar. That step required the firm to raise still more capital, under painful terms that re-priced some of the December stock sales at about half the original price.

One top Merrill executive lamented the pending sale of the venerable company, saying "it's sad but inevitable." This executive said that he was pleased it was Merrill, rather than rival broker Morgan Stanley, that was hatching a deal with Bank of America.

The fate of both Morgan Stanley and Goldman Sachs will be front and center Monday morning, as the Street wakes up to a world where the independent broker-dealer are increasingly thin in number.

This tumultuous year has made it clear that investment banks like Lehman and Bear Stearns face vulnerabilities that commercial banks such as J.P. Morgan and Bank of America are less prone to. The investment banks must constantly depend on short- and medium-term money markets to fund their operations. Commercial banks, meanwhile, can count on more stable consumer deposit bases.

In a highly volatile market, some advantages accrue to banks that can rely on those more stable deposit bases.

At Merrill, "we became convinced that for investment banking to be possible, we need to be part of a much bigger capitalized commercial bank," the Merrill executive said.

Merrill acted to avoid the same fate as Bear Stearns and Lehman, some analysts said. "Bear didn't think it could happen to them and Lehman didn't think it could happen to them either," said analyst David Trone of Fox-Pitt, Kelton. "I think management looked at Bear and Lehman and said we're not going to go down that slope, we're going to try and get our shareholders something before we end up in the same camp."

Ultra Peanut
09-14-2008, 10:37 PM
AIG is also going through some stuff (http://dealbook.blogs.nytimes.com/2008/09/14/aig-seeks-fed-aid-to-survive/index.html?hp).

So, you know, there's that ray of sunshine.

'Hamas' Jenkins
09-14-2008, 10:41 PM
So, you're saying that the financial system is the Kansas City Chiefs?

Logical
09-14-2008, 10:51 PM
Who is withdrawing all their money and putting it under their bed.

No more joking the country is a mess, another reason not to continue the Bush years with McCain.

Garcia Bronco
09-15-2008, 08:29 AM
Dang, BOA is bailing out everyone it seems.

Garcia Bronco
09-15-2008, 08:37 AM
Who is withdrawing all their money and putting it under their bed.

No more joking the country is a mess, another reason not to continue the Bush years with McCain.


Ignorant statement.

jAZ
09-15-2008, 01:38 PM
Dang, BOA is bailing out everyone it seems.

And here we have another "too big to fail" institution who's financial gambles will eventually be covered if they lose.

tiptap
09-15-2008, 01:45 PM
I can't wait until the loser are wrung out of the economy, the turn around starts up and foreign companies buy the upswing assets and we become a debtor./non owner nation. That is when we get the thumb up the ass. I hope for some kind of world slow down so we have a chance to get our feet back under us. And that is a Green plan as we no longer will have access to 20% of the world's resources. period.

BIG_DADDY
09-15-2008, 01:46 PM
Who is withdrawing all their money and putting it under their bed.

No more joking the country is a mess, another reason not to continue the Bush years with McCain.

That's a pretty pathetic attempt at bashing dude. I guess if it's good enough for the media it's good enough for you.

On a real note these banker/brokerage combinations never work out well. Very, very different cultures

jAZ
09-15-2008, 01:48 PM
...another reason not to continue the Bush years with McCain.
Indeed.

Ignorant statement.

Ignorant statement.

Phil Gramm is McCain's brain on fiscal policy. He's also maybe the single most responslible person for creating the climate that lead to this crisis. To call Jim's statement ignorant is to be completely unaware of the facts of the matter. Set aside your partisan interests and realize that as far as economic policy, McCain = Phill Gramm = this economic meltdown. These two are far worse than Bush.

http://www.politico.com/news/stories/0308/9246.html

McCain guru linked to subprime crisis
By LISA LERER | 3/28/08 2:06 PM EST Text Size:

The general co-chairman of John McCain’s presidential campaign, former Sen. Phil Gramm (R-Texas), led the charge in 1999 to repeal a Depression-era banking regulation law that Democrat Barack Obama claimed on Thursday contributed significantly to today’s economic turmoil.

“A regulatory structure set up for banks in the 1930s needed to change because the nature of business had changed,” the Illinois senator running for president said in a New York economic speech. “But by the time [it] was repealed in 1999, the $300 million lobbying effort that drove deregulation was more about facilitating mergers than creating an efficient regulatory framework.”

Gramm’s role in the swift and dramatic recent restructuring of the nation’s investment houses and practices didn’t stop there.

A year after the Gramm-Leach-Bliley Act repealed the old regulations, Swiss Bank UBS gobbled up brokerage house Paine Weber. Two years later, Gramm settled in as a vice chairman of UBS’s new investment banking arm.

Later, he became a major player in its government affairs operation. According to federal lobbying disclosure records, [B]Gramm lobbied Congress, the Federal Reserve and the Treasury Department about banking and mortgage issues in 2005 and 2006.

During those years, the mortgage industry pressed Congress to roll back strong state rules that sought to stem the rise of predatory tactics used by lenders and brokers to place homeowners in high-cost mortgages.

For his work, Gramm and two other lobbyists collected $750,000 in fees from UBS’s American subsidiary. In the past year, UBS has written down more than $18 billion in exposure to subprime loans and other risky securities and is considering cutting as many as 8,000 jobs.

Gramm did not respond to an e-mail and was unavailable for comment, according to a UBS spokesman. The bank has no official position on the subprime crisis, the spokesman said, but is a member of the Financial Services Roundtable and other industry groups that are actively lobbying Congress on the issue.

Now, some housing experts and economists see Gramm’s thinking in the recent housing proposal from McCain, the Republican Party’s presumed presidential nominee. Gramm is often a surrogate for the Arizona senator, particularly in meetings focused on the economy. And McCain has hinted he’d consider the former Texas senator for Treasury secretary in a McCain administration.

McCain delivered an economic speech Tuesday that had Gramm's input, but it was written by domestic policy adviser Douglas Holtz-Eakin.

“Sen. Gramm was one of dozens of folks whom Sen. McCain has consulted on the housing issue, including Carly Fiorina and Meg Whitman from eBay," said McCain campaign spokesman Brian Rogers. "They've been friends for years, and he values Sen. Gramm's advice."

In the speech, McCain rejected the type of aggressive government intervention in the economic meltdown that has been embraced by his Democratic opponents — and even some Bush advisers.

“I have always been committed to the principle that it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers,” McCain said. “Government assistance to the banking system should be based solely on preventing systemic risk that would endanger the entire financial system and the economy.”

McCain’s campaign later clarified that he would support programs for “deserving” homeowners and reforms that would improve transparency and accountability in capital markets.

Andrew Jakabovics, a housing expert at the liberal Center for American Progress, said McCain’s interpretation of the crisis puts little blame on investment banks for their role in packaging the subprime loans into dangerously complex and ultimately hard-to-value financial instruments.

“I’d characterize this as the deux ex machina theory of financial products,” Jakabovics said. “He views this as a market problem that manifests at the local level as housing, meaning he’s more likely to argue in favor of these guys when they argue for deregulation.”

Wall Street firms are increasingly under scrutiny for contributing to the economic downturn by packaging and selling risky mortgage securities. When the home loans tied to the mortgages defaulted, investors and the banks lost billions, contributing to a widespread credit crunch.

“I think [McCain’s] attitude is the market can basically handle this and government doesn’t need to be heavily involved,” said David Wyss, chief economist at Standard and Poor’s.

McCain and Gramm have a long political history. The two became close when they worked together as senators to defeat Hillary Rodham Clinton’s 1993 health care plan, holding meetings at hospitals and clinics across the country.

In 1996, McCain was national chairman of Gramm's unsuccessful presidential bid.

In 2000, the duo had a rare parting when Gramm backed his home-state governor, George W. Bush, for president instead of McCain. But they’ve reunited in this presidential race.

Gramm stood by his former Senate colleague in his worst days last summer when his campaign went broke and his candidacy was all but written off by political observers.

Gramm, who had joined the campaign in March as a domestic policy adviser, was among those who helped cut staff and shrink the budgets. He traveled with McCain in Iowa, New Hampshire and South Carolina and stumped for him in Georgia.

Staff writer Victoria McGrane contributed to this story.

Garcia Bronco
09-15-2008, 01:56 PM
Indeed.



Ignorant statement.

Phil Gramm is McCain's brain on fiscal policy. He's also maybe the single most responslible person for creating the climate that lead to this crisis. To call Jim's statement ignorant is to be completely unaware of the facts of the matter. Set aside your partisan interests and realize that as far as economic policy, McCain = Phill Gramm = this economic meltdown. These two are far worse than Bush.

http://www.politico.com/news/stories/0308/9246.html
McCain guru linked to subprime crisis
By LISA LERER | 3/28/08 2:06 PM EST Text Size:

The general co-chairman of John McCain’s presidential campaign, former Sen. Phil Gramm (R-Texas), led the charge in 1999 to repeal a Depression-era banking regulation law that Democrat Barack Obama claimed on Thursday contributed significantly to today’s economic turmoil.

“A regulatory structure set up for banks in the 1930s needed to change because the nature of business had changed,” the Illinois senator running for president said in a New York economic speech. “But by the time [it] was repealed in 1999, the $300 million lobbying effort that drove deregulation was more about facilitating mergers than creating an efficient regulatory framework.”

Gramm’s role in the swift and dramatic recent restructuring of the nation’s investment houses and practices didn’t stop there.

A year after the Gramm-Leach-Bliley Act repealed the old regulations, Swiss Bank UBS gobbled up brokerage house Paine Weber. Two years later, Gramm settled in as a vice chairman of UBS’s new investment banking arm.

Later, he became a major player in its government affairs operation. According to federal lobbying disclosure records, Gramm lobbied Congress, the Federal Reserve and the Treasury Department about banking and mortgage issues in 2005 and 2006.

During those years, the mortgage industry pressed Congress to roll back strong state rules that sought to stem the rise of predatory tactics used by lenders and brokers to place homeowners in high-cost mortgages.

For his work, Gramm and two other lobbyists collected $750,000 in fees from UBS’s American subsidiary. In the past year, UBS has written down more than $18 billion in exposure to subprime loans and other risky securities and is considering cutting as many as 8,000 jobs.

Gramm did not respond to an e-mail and was unavailable for comment, according to a UBS spokesman. The bank has no official position on the subprime crisis, the spokesman said, but is a member of the Financial Services Roundtable and other industry groups that are actively lobbying Congress on the issue.

Now, some housing experts and economists see Gramm’s thinking in the recent housing proposal from McCain, the Republican Party’s presumed presidential nominee. Gramm is often a surrogate for the Arizona senator, particularly in meetings focused on the economy. And McCain has hinted he’d consider the former Texas senator for Treasury secretary in a McCain administration.

[B]McCain delivered an economic speech Tuesday that had Gramm's input, but it was written by domestic policy adviser Douglas Holtz-Eakin.

“Sen. Gramm was one of dozens of folks whom Sen. McCain has consulted on the housing issue, including Carly Fiorina and Meg Whitman from eBay," said McCain campaign spokesman Brian Rogers. "They've been friends for years, and he values Sen. Gramm's advice."

In the speech, McCain rejected the type of aggressive government intervention in the economic meltdown that has been embraced by his Democratic opponents — and even some Bush advisers.

“I have always been committed to the principle that it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers,” McCain said. “Government assistance to the banking system should be based solely on preventing systemic risk that would endanger the entire financial system and the economy.”

McCain’s campaign later clarified that he would support programs for “deserving” homeowners and reforms that would improve transparency and accountability in capital markets.

Andrew Jakabovics, a housing expert at the liberal Center for American Progress, said McCain’s interpretation of the crisis puts little blame on investment banks for their role in packaging the subprime loans into dangerously complex and ultimately hard-to-value financial instruments.

“I’d characterize this as the deux ex machina theory of financial products,” Jakabovics said. “He views this as a market problem that manifests at the local level as housing, meaning he’s more likely to argue in favor of these guys when they argue for deregulation.”

Wall Street firms are increasingly under scrutiny for contributing to the economic downturn by packaging and selling risky mortgage securities. When the home loans tied to the mortgages defaulted, investors and the banks lost billions, contributing to a widespread credit crunch.

“I think [McCain’s] attitude is the market can basically handle this and government doesn’t need to be heavily involved,” said David Wyss, chief economist at Standard and Poor’s.

McCain and Gramm have a long political history. The two became close when they worked together as senators to defeat Hillary Rodham Clinton’s 1993 health care plan, holding meetings at hospitals and clinics across the country.

In 1996, McCain was national chairman of Gramm's unsuccessful presidential bid.

In 2000, the duo had a rare parting when Gramm backed his home-state governor, George W. Bush, for president instead of McCain. But they’ve reunited in this presidential race.

Gramm stood by his former Senate colleague in his worst days last summer when his campaign went broke and his candidacy was all but written off by political observers.

Gramm, who had joined the campaign in March as a domestic policy adviser, was among those who helped cut staff and shrink the budgets. He traveled with McCain in Iowa, New Hampshire and South Carolina and stumped for him in Georgia.

Staff writer Victoria McGrane contributed to this story.



It is ignorant. John McCain isn't George Bush. They are two different people. Further more the piece of legislation sponsered by Gramm passed the Senate 54-44 and Bill Clinton then signed it into law. There are many people to blame this mess on. So"Set aside your partisan interests " take your own advice.

jAZ
09-15-2008, 02:03 PM
It is ignorant. John McCain isn't George Bush. They are two different people. Further more the piece of legislation sponsered by Gramm passed the Senate 90-8 and Bill Clinton then signed it into law. There are many people to blame this mess on. So"Set aside your partisan interests " take your own advice.

Bill Clinton isn't running for control of the White House. Neither is Bush. And the last thing this country needs is more Phil Gramm & John McCain.

mlyonsd
09-15-2008, 02:05 PM
The last thing this country needs is more Phil Gramm.

No, the last thing this country needs is raising taxes on anyone.

Garcia Bronco
09-15-2008, 02:09 PM
Bill Clinton isn't running for control of the White House. Neither is Bush. And the last thing this country needs is more Phil Gramm & John McCain.


Doesn't matter if they are running or not. If you want to hand out blame you have to aknowledge Bill Clinton and George Bush. The last thing this country needs is more taxes and more spending. And wehter you vote for McCain or Obama you are going to get more taxes and more spending.

BIG_DADDY
09-15-2008, 02:09 PM
jaz thinks Obama is going to take on the oligarchy of this country. LMAO

Stewie
09-15-2008, 02:29 PM
The BofA deal for Merrill is just a smokescreen. The Fed couldn't let two banks fail in the same weekend, so they did a backroom deal. I don't have proof of that, but why would BofA give a 70% premium to an investment bank holding $billions in toxic investments? BofA also overpaid for Countrywide, so there's something fishy going on that we aren't told about.

Garcia Bronco
09-15-2008, 02:38 PM
The BofA deal for Merrill is just a smokescreen. The Fed couldn't let two banks fail in the same weekend, so they did a backroom deal. I don't have proof of that, but why would BofA give a 70% premium to an investment bank holding $billions in toxic investments? BofA also overpaid for Countrywide, so there's something fishy going on that we aren't told about.


I agree.

BIG_DADDY
09-15-2008, 02:41 PM
The BofA deal for Merrill is just a smokescreen. The Fed couldn't let two banks fail in the same weekend, so they did a backroom deal. I don't have proof of that, but why would BofA give a 70% premium to an investment bank holding $billions in toxic investments? BofA also overpaid for Countrywide, so there's something fishy going on that we aren't told about.

Yep. You know what's funny is I read your thread on the banking system a few days back. For a guy that thinks I'm nuts you sure sound a lot like me. Years ago I was posting on the Federal Reserve and our banking system and everyone said I was nuts. That was the last time I posted on anything like that.

jAZ
09-15-2008, 03:05 PM
Doesn't matter if they are running or not. If you want to hand out blame you have to aknowledge Bill Clinton and George Bush. The last thing this country needs is more taxes and more spending. And wehter you vote for McCain or Obama you are going to get more taxes and more spending.
I don't care about handing out blame. I care about stopping stupid f-ing policy decisions. And that sure as hell isn't going to happen if McCain is elected. His plan is "more of the same" and that's not just a campaign slogan.

Trusting Phil Gramm with this economy is a reflection of how horrible McCain's judgement is on these things.

jAZ
09-15-2008, 03:07 PM
jaz thinks Obama is going to take on the oligarchy of this country. LMAO

jAZ thinks that Obama won't hire Phil Gramm or anyone like him to run the Treasury.

Garcia Bronco
09-15-2008, 03:16 PM
I don't care about handing out blame.

Yeah you do.

Silock
09-15-2008, 03:19 PM
The BofA deal for Merrill is just a smokescreen. The Fed couldn't let two banks fail in the same weekend, so they did a backroom deal. I don't have proof of that, but why would BofA give a 70% premium to an investment bank holding $billions in toxic investments? BofA also overpaid for Countrywide, so there's something fishy going on that we aren't told about.

I think they're just gathering up all the scraps and setting themselves up for MASSIVE profits in the future.

On the other hand, another board I post on, someone said this:

Kid I went to school with works at UBS and he said they overwrote their writedowns by 40% so that in future years things will look better and they'll make a killing. However, there was an big "unless" after he said that, and that was if there's still more losses to come that nobody knows about.

SBK
09-15-2008, 04:42 PM
The BofA deal for Merrill is just a smokescreen. The Fed couldn't let two banks fail in the same weekend, so they did a backroom deal. I don't have proof of that, but why would BofA give a 70% premium to an investment bank holding $billions in toxic investments? BofA also overpaid for Countrywide, so there's something fishy going on that we aren't told about.

Yeah. Be interesting when all this clears how big BOA gets because of all of this.

eazyb81
09-15-2008, 06:06 PM
The BofA deal for Merrill is just a smokescreen. The Fed couldn't let two banks fail in the same weekend, so they did a backroom deal. I don't have proof of that, but why would BofA give a 70% premium to an investment bank holding $billions in toxic investments? BofA also overpaid for Countrywide, so there's something fishy going on that we aren't told about.

There have already been reports that the Fed forced Merrill to sell this weekend, so I'm not sure what you're referring to. Are you suggesting that the Fed gave BofA some cash under the table to finance this?

One thought that came to me last night that won't get out of my head is that this deal was never meant to close, and was just announced to stem the waves of shorting and bring some stability to the market. I admit that it sounds like a ridiculous conspiracy theory on the surface, but ML's brokerage business isn't enough to warrant a 70% premium, and I don't see any other significant synergies other than the fact ML will benefit from BofA's retail deposits, and BofA will benefit from ML's strong IB and brokerage divisions.

eazyb81
09-15-2008, 06:12 PM
Also, reports are out that the Fed has asked Goldman and JPM to help make $75 billion in loans available to AIG. AIG has a trillion dollar balance sheet, massive counterparty risk, and tons of exposure to derivatives.

An AIG collapse is absolutely frightening.

banyon
09-15-2008, 07:10 PM
The BofA deal for Merrill is just a smokescreen. The Fed couldn't let two banks fail in the same weekend, so they did a backroom deal. I don't have proof of that, but why would BofA give a 70% premium to an investment bank holding $billions in toxic investments? BofA also overpaid for Countrywide, so there's something fishy going on that we aren't told about.

I'm getting even more cynical about these clowns than I was.

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banyon
09-15-2008, 07:12 PM
Also one positive from this coverage: I didn't realize how hot Erin Burnett was.

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eazyb81
09-16-2008, 09:09 AM
$50B pumped into the financial system today to add liquidity but AIG needs $75Bn\ by the end of the night or they are bankrupt tomorrow. Last night's downgrades prompted additional collateral calls and AIG is fcked. I think the Fed will cut today by 25 bps with aggressive language.

BigChiefFan
09-16-2008, 09:12 AM
More sound policies from the GOP, that McCain wants to keep in place.

tiptap
09-16-2008, 09:15 AM
It is ignorant. John McCain isn't George Bush. They are two different people. Further more the piece of legislation sponsered by Gramm passed the Senate 54-44 and Bill Clinton then signed it into law. There are many people to blame this mess on. So"Set aside your partisan interests " take your own advice.

Along party lines and one of the reasons you couldn't put Clinton on the ticket. Bill Clinton's term included lots of compromises that are not the choice of Obama with a Democratic Majority in the Congress.

eazyb81
09-16-2008, 09:23 AM
More sound policies from the GOP, that McCain wants to keep in place.

If you are going to keep posting this, then at least attempt to back it up with something substantial.

McCain wants to keep what in place? Do you comprehend what is actually occuring in the financial markets right now, or do you just think Bush did it?

AIG 'insured' CDOs held by banks through swaps, and with each ratings downgrade they are forced to post more collateral. It is out of their hands at this point. Please explain how that is on Bush, McCain, or any other politician.

tiptap
09-16-2008, 09:30 AM
The present administration funneled the growth of the economy through policies that encouraged home ownership. Then the present administration went to war for a trillion dollars on borrowed money and vacuumed up the money to finance debt. They didn't connect the dots that home owners rang up debt as well and that they were competing for financing debt. The result was the present disarray. I will say that if the Iraq war had not been dragged along or if better oversight of the bank selling of mortgages than the Republicans could have avoided this level of correction. It is the size of the correction that the Republicans are at fault for.