Mar

15

 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.


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11 Comments so far

  1. Lon Evans on March 16, 2008 2:48 pm

    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

  2. Anatoly Veltman on March 16, 2008 9:51 pm

    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!

  3. Lon Evans on March 16, 2008 11:51 pm

    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

  4. Lon Evans on March 17, 2008 12:05 am

    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?

  5. Anatoly Veltman on March 17, 2008 11:21 am

    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!

  6. Anatoly Veltman on March 17, 2008 1:18 pm

    Anatoly Veltman adds:

    I forgot to mention: Yankies paid more for A.Rod, than J.P.Morgan for Bear Stearns & Co!

  7. Lon Evans on March 18, 2008 2:45 am

    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

  8. acetrader on March 18, 2008 10:15 am

    Lon, you got all the answers….WWUD? let Bear go into bankruptcy and risk a market meltdown? What other options were there?

  9. Lon Evans on March 19, 2008 2:24 am

    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

  10. Lon Evans on March 19, 2008 2:26 am

    Oh,

    By the way Ace, yes, for the last few months I have had all the answers!

    lon

  11. acetrader on March 19, 2008 11:18 am

    ok, how does the Bear takeout affect me? Not being a smartass, just would like to know…

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