I do not know, Dick Bove just said BSC is too big to fail (not sure about that one) but it is not too big to go the way of Compaq Computer (getting absorbed into a bigger company).
Big market events like this often include enormous failures. BSC is certainly big but I am not sure if it is enormous. This being important news would be constructive as part of the ending process and while I hope it turns out to be important it might be a little early. Stay tuned!
Update Update
Actually more of a new thought. What of the put buyers who made so much news buying March expirations of $40 and even $30? The stock is printing $31 (assuming what I am looking at can keep up) as I publish the update
8 comments:
Sounds like the Fed is becoming a US sovereign wealth fund.
i bought JPM in my long term account today... my first foray into financials in several years -- other than my short term trades in NLY --
WSJ opinion page earlier this week specifically stated that this facility was not a bailout.
Now why'd they go to so much trouble pointing that out?
On Nightly Business News, the guest (was that Bove?) was quoted as saying that something will happen this week, as there was a not so secret rumor that all the traders at BSC were told to get flat by the end of the day.
Probably a sale to ... JPM?
As an aside, isn't this whole TSLF and "28 days at a time" a thinly veiled rescue plan to all those banks (Lehman, Goldman?, others) that would have to mtm for their Qtrly's the printed prices of the subprime slop that came out of the forced liquidations (Carlyle, Thornburg)?
What's a short to do, if the govt is always reaching into its bag of tricks?
But then again, maybe this is the best news a short can have.
R in NY
Correction: "will happen this WEEKEND"
R in NY
Roger,
I made some moves this week going into some fixed income (Pimco intermediate stuff), some tips, natural resource fund. Also bought msft, csco, ge, and chk. Large Global Cap Stocks and a Natural Gas Play. We are getting close to capitulation.
Any comments or observations are welcomed.
BWJR
It'll (eventually) be oil money from the Middle East being used to bail out these crooks and incompetents. They will receive their pound of flesh for a job badly done and taxpayers will foot the bill.
SPX down 17% in five months doesn't seem that capitulatory (i don't think that is a word) to me. it actually seems very ordinary in terms of measuring bear markets.
i hope you're right though.
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