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Loren Schweizer · 03-17-2008, 10:22 AM

Well, Bush-bashing aside, yes, we have a little problem, partly due to the deficit. And, hey, I like cheap underwear from WalMart, too.
It got a little out of hand, though, with high energy prices...then add the sub-prime debacle (hey, I like cheap financing, too), the securitizing of all those bad loans...
What we are now seeing, as a result of the unwinding of all the bad bets + the seized-up credit markets + Benny & The Feds having little-to-no results from lowering the overnight rate is the beginning of a major effect on the high-octane derivatives markets.
Bear was leveraged out over 32X. Morgan Stanley will post results on Wednesday, and they were leveraged out only a tick less.

It (hopefully) will not become a 'depression', but it most certainly will reach into every corner in every place on the planet. Think I saw a pundit remarking on World GDP heading down to 2.5%.
Not terrible, just gut-churning for a while.

My $.02
$.03 (inflation)

03-17-2008, 10:22 AM	#82
Loren Schweizer YF Associate Writer Join Date: Apr 2004 Location: Coral Gables/Ft. Laud., FL Posts: 832	Well, Bush-bashing aside, yes, we have a little problem, partly due to the deficit. And, hey, I like cheap underwear from WalMart, too. It got a little out of hand, though, with high energy prices...then add the sub-prime debacle (hey, I like cheap financing, too), the securitizing of all those bad loans... What we are now seeing, as a result of the unwinding of all the bad bets + the seized-up credit markets + Benny & The Feds having little-to-no results from lowering the overnight rate is the beginning of a major effect on the high-octane derivatives markets. Bear was leveraged out over 32X. Morgan Stanley will post results on Wednesday, and they were leveraged out only a tick less. It (hopefully) will not become a 'depression', but it most certainly will reach into every corner in every place on the planet. Think I saw a pundit remarking on World GDP heading down to 2.5%. Not terrible, just gut-churning for a while. My $.02 $.03 (inflation) Last edited by Loren Schweizer : 03-17-2008 at 11:16 AM.