Mar
15
The Panic of ‘07, from Duncan Coker
March 15, 2008 |
I am sure JP would be proud to see his legacy coming in to restore confidence — though I doubt the all-night meeting was as dramatic as lining up the Trusts in his library and passing around the subscription pad until it was full, back in '07. I am checking the wire for any gold shipments from London, maybe Tuesday. And the Curb rates still below triple digits last time I looked, so that's a help. Commodity corner still holding up fine, and I've seen no lines at the Knickerbocker. All in all an unchanged week.
James Sogi adds:
The mob should be satisfied with the sacrifice of the Governor and a major brokerage. Just as after Charles Barney went down, they had to stop the carnage somewhere. The Panic of 1907 by Robert F. Bruner and Sean D. Carr is a good recount. See especially page 133 on what happened Monday morning after the brokerage credit crisis was relieved.
Stefan Jovanovich replies:
"The mob"? The Governor was such a pathetic amateur as a criminal that he managed to trigger the most basic surveillance mechanism in the Federal banking system by repeatedly splitting cash transactions to keep them under the $10,000 limit so that they do not require reporting. If he'd had had the gumption to walk into the bank and ask for $50,000 all at once and filled out the form and put the cash in a safe deposit box, no one would have been the wiser.
Comments
11 Comments so far
Archives
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- Older Archives
Resources & Links
- The Letters Prize
- Pre-2007 Victor Niederhoffer Posts
- Vic’s NYC Junto
- Reading List
- Programming in 60 Seconds
- The Objectivist Center
- Foundation for Economic Education
- Tigerchess
- Dick Sears' G.T. Index
- Pre-2007 Daily Speculations
- Laurel & Vics' Worldly Investor Articles
A thought on ‘Panics,’
My take has been that what we’re currently experiencing more mirrors the John Law situation embraced by the French than those more recent and immediate to U.S. history.
Any one interested in taking a bite at this?
(And please, let’s stick to point and leave any further talk of Asperger’s for another site.)
lon
No failure to note that BSC sells for $2 a share, down from $30.00 Friday and from over $170 in 2007! Yes, J.P.Morgan still knows how to bargain!
Also of note that UBS is trying to sell its best asset Paine Webber, that Lehman is panicly raising liquidity, and that Goldman discloses $3b hit…
Do remember to bid, when futures re-open after first limit-down: a symmetrical reversal rally would leave most everyone behind!
Note taken, Anatoly.
Is it too early to elect Mr. Bush as this century’s Herbert Hoover? It just might be the only contest he honestly wins.
lon
Sorry,
But this is just too damn exciting to ignore. Had a great-uncle, Southern gentleman, and on occasion he opine: “This is when the chickens come home to roost.”
And I’d thought the fox had done et’em all!
lon
p.s. Any bulls left standing?
Anatoly Veltman adds:
MF Global stock plunges 70%, diverging from broader market bounce. Biggest commodity broker as of Fri; there may be implications for individual commodity markets!
Anatoly Veltman adds:
I forgot to mention: Yankies paid more for A.Rod, than J.P.Morgan for Bear Stearns & Co!
Anatoly,
As to A.Rod’s salary,
Your in error (how many times have I opined that?).
Include the 30 billion that Bernake insisted as incentive and, well, the A.Rod deal looks like a steal.
Hell, I’d have loved the opportunity to buy into Bear at two bucks a share, but apparently most pigs are less privileged than the craven few.
The last few have been sorry days for capitalism.
lon
Lon, you got all the answers….WWUD? let Bear go into bankruptcy and risk a market meltdown? What other options were there?
Ace Trader,Yes, not only risk a meltdown, but demand it. Apparently, you enjoy being taken for a ride. I don't? And, unlike you, I won't pay for the privilege.lon
Oh,
By the way Ace, yes, for the last few months I have had all the answers!
lon
ok, how does the Bear takeout affect me? Not being a smartass, just would like to know…