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Re: OptionMonster post# 34256

Friday, 09/12/2008 1:01:22 PM

Friday, September 12, 2008 1:01:22 PM

Post# of 72979
Financial Meltdown
First came the near-collapse of Bear Stearns. Then, Fannie Mae and Freddie Mac caved in.

In both cases, the government came to the rescue.

Now, another venerable Wall Street investment banking firm, Lehman Brothers, is on the edge, and the nation's biggest savings and loan, Washington Mutual, is under pressure.

http://www.chicagotribune.com/business/yourmoney/chi-fri-gail-0912-sep12,0,6906786.column

With the Freddie and Fannie situations, the government simply moved in and "showed they would bankrupt preferred and common shareholders," Bianco said. "Would you buy common or preferred shares if you knew this?"

That's why Bianco thinks a wide array of financial companies won't be able to raise capital on their own, and why conditions of many companies will "sink further" in the weeks ahead.


Short on Fire #msg-30822769






My posting is for my own entertainment, do your own DD before pushing your buy/call button

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