Re: DOW Up 416.66 : Financial Groups' Correction?

On Mar 11, 6:16 pm, stuff_st...@[EMAIL PROTECTED]
 wrote:
> On Tue, 11 Mar 2008 15:51:07 -0700 (PDT), Vide...@[EMAIL PROTECTED]
 wrote:
> > mostly correct, except you missed the part where trusts over
> >leveraged themselves back then, just like hedge funds did today. there
> >is where the real problems lies today.
> > i bet most hedge funds are panicking as the margin calls come rolling
> >in. its trillions of debt called liquidity by the free market
> >hucksters.
>
> http://bigpicture.typepad.com/
>
> Bove: Fed Rescue for Bear Stearns
> Tuesday, March 11, 2008 | 05:36 PM
> in Credit | Derivatives | Federal Reserve | Markets | Short Selling
>
>      >
>     "The Federal Reserve's actions today may have been strongly
> influenced by Bear Stearns' problem."
>     -Dick Bove, Punk Ziegel & Co.
>
> Go figure: This morning's announcement by the Fed seemed to be
> designed to help the brokers and their fixed-income hedge fund clients
> who were struggling -- so said Brad Hintz, Bernstein Research covering
> the Financials. (we noted similar sentiment here)
>
> He's not the only one. Influential Bank/Broker analyst Dick Bove of
> Punk Ziegel (quoted above) specifically mentioned Beat Stearns (BSC)
> as the beneficiary of the Fed's largesse.
>
> According to Marketwatch: "Bear's stock dropped 11% on Monday on
> concern that its borrowing costs are rising. For a brokerage firm,
> which relies on steady access to financing, such disruptions can
> restrain its businesses and leave it at a disadvantage to financially
> stronger rivals."
>
> Pretty wild stuff -- $200 Billion in Fed lending against junk paper,
> to bail out one mid-size investment bank.
>
> And the market's reaction: Dow up 3.55% (417 points), Nasdaq +4% or
> more than 86 points, S&P500 up 3.7% or 47 points
>
> Ain't Socialism grand?'

 if only they would treat us the same. but what we have is a supply
side socialism. thanks freidman/greenspan.