I'll be amazed if we don't have a financial collapse within 50
months. I feel pretty confident in saying...it's coming!
I've never seen dumber, greedier and more incompetent people involved
in industries driving markets in my life. Who knows, maybe we need
our assholes reamed 10 - 20 sizes over to kick start the dormant gray
matter atrophied between our ears. After all the dust settles and we
try and salvage (not much) whatever is left, hopefully the question
will pop in our minds----------------what is a ****ing MBA from Yale,
Harvard, Wharton, etc... REALLY worth? Couldn't someone go to state
university and receive just as dangerous education; or perhaps, being
a little more optimistic and pragmatic, a superior one that would have
instilled enough critical thinking skills in the skulls of these
idiots who were brain dead at the wheel and allowed this **** to
happen and dodge the bull**** in the first place? Not only that, but
get it at the fraction of the price!!!?!?!
--ItT
Banks face "systemic margin call," $325 billion hit: JPMupdated 9:24
a.m. ET, Sat., March. 8, 2008: By Walden Siew
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 re****t late on Friday.
JPMorgan, which sent a default notice to Thornburg Mortgage Inc.
<TMA.N> after the lender missed a $28 million margin call, said more
default notices and margin calls were likely. The Carlyle Group's
mortgage fund also failed to meet $37 million in margin calls this
week.
"A systemic credit crunch is underway, driven primarily by bank
writedowns for subprime mortgages," according to the re****t co-
authored by analyst Christopher Flanagan. "We would characterize this
situation as a systemic margin call."
The credit crisis that began about a year ago will likely intensify
after Friday's weak February U.S. employment re****t "that most
definitely signals recession," JPMorgan said.
Indeed, cor****ate bond spreads widened to a new record on Friday,
surpassing levels seen in October 2002 during a boom in bankruptcies
following the dot-com crash. U.S. employers cut payrolls in February
for a second consecutive month, sla****ng 63,000 jobs, the biggest
monthly job decline in nearly five years, the U.S. Labor Department
re****ted on Friday.
"The weak February employment re****t points to an economy in
recession," JPMorgan said.
The JPMorgan re****t included a revised bleaker forecast for subprime-
related home prices. The bank now sees prices falling 30 percent, from
its prior 25 percent forecast. Those prices have declined 14 percent
since mid-2006, JPMorgan said.
The U.S. jobs results also came after the Federal Reserve expanded the
amount of its short-term auctions to $100 billion in total in the
central bank's latest effort to ease credit concerns. Ongoing concerns
about bond insurers, known as monolines, and their effort to save
their top ratings also are weighing on market sentiment.
|
