Comments on: Bear Conspiracy Theories and Carry Trade Unwind http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry.html Mon, 23 Nov 2009 00:29:23 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry.html#comment-6204 Anonymous Wed, 02 Apr 2008 01:33:00 +0000 http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry-trade-unwind/#comment-6204 BANANA REPUBLIC STYLE FOR SURE. THE RUN ON BSC WAS ORCHESTRATED BY SOMEONE ...BUT WHO? NOT MUCH TO ADD TO AN EXCELLENT POST. ONLY ONE THING TO ADD. WHY DID THE FEDS NOT ACT A WEEK EARLIER? EASY. EXACTLY A WEEK EARLIER THE FEDS WERE OUTING ELLIOT SPITZER FOR FREQUENTING PROSTITUTES. ANY CONNECTING WAS PURELY COINCIDENTAL. BANANA REPUBLIC STYLE FOR SURE. THE RUN ON BSC WAS ORCHESTRATED BY SOMEONE …BUT WHO? NOT MUCH TO ADD TO AN EXCELLENT POST. ONLY ONE THING TO ADD. WHY DID THE FEDS NOT ACT A WEEK EARLIER? EASY. EXACTLY A WEEK EARLIER THE FEDS WERE OUTING ELLIOT SPITZER FOR FREQUENTING PROSTITUTES. ANY CONNECTING WAS PURELY COINCIDENTAL.

]]> By: VennData http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry.html#comment-6203 VennData Wed, 02 Apr 2008 01:12:00 +0000 http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry-trade-unwind/#comment-6203 One thing that lends plausibility to the dealer bailout scenario is the fact that it was Bear Stern's bondholders were the ones who were bailed out, and bailed out completely. This focus on the shareholders misses the thrust of the MSM reports. One thing that lends plausibility to the dealer bailout scenario is the fact that it was Bear Stern’s bondholders were the ones who were bailed out, and bailed out completely. This focus on the shareholders misses the thrust of the MSM reports.

]]> By: Zeke http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry.html#comment-6199 Zeke Tue, 01 Apr 2008 19:14:00 +0000 http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry-trade-unwind/#comment-6199 This is just showing that all the talk about "free markets" is just that: talk. At the highest levels, the one with interhcangable jobs like Fed Governor, Treasury Secretary, chairmain and CEO of Goldman Sachs those ideas are just "quaint". In "too big to fail" country power picks the winners and loosers. <br/><br/>How can ordinary Americans not be extremely cynical about this. Is anyone going to insist that the former CEO of Bear Stearns return any of the $50 million he paid himself only six months ago? No. <br/><br/>Instead the insiders will come hat in hand to the taxpayers shove this mess down our throats, insisting the whole time it is for our own good. We get the junk bonds, they get t-bills. We get 29% credit card rates, they get 2% free money. We get a dollar that constantly declines in value, and fixed wages. They get hyper-liquidity thanks to the Fed. This is just showing that all the talk about “free markets” is just that: talk. At the highest levels, the one with interhcangable jobs like Fed Governor, Treasury Secretary, chairmain and CEO of Goldman Sachs those ideas are just “quaint”. In “too big to fail” country power picks the winners and loosers.

How can ordinary Americans not be extremely cynical about this. Is anyone going to insist that the former CEO of Bear Stearns return any of the $50 million he paid himself only six months ago? No.

Instead the insiders will come hat in hand to the taxpayers shove this mess down our throats, insisting the whole time it is for our own good. We get the junk bonds, they get t-bills. We get 29% credit card rates, they get 2% free money. We get a dollar that constantly declines in value, and fixed wages. They get hyper-liquidity thanks to the Fed.

]]> By: lerwin1 http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry.html#comment-6190 lerwin1 Tue, 01 Apr 2008 15:58:00 +0000 http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry-trade-unwind/#comment-6190 Very nice post. I don't believe for a second however that the Fed officials will answer your questions.<br/><br/>My question would be: Do you have any concerns about the existence of a real or apparent conflict of interest in having the current CEO of JPM sitting on the board of the Federal Reserve Bank of New York? <br/><br/>That question won't get answered either. Very nice post. I don’t believe for a second however that the Fed officials will answer your questions.

My question would be: Do you have any concerns about the existence of a real or apparent conflict of interest in having the current CEO of JPM sitting on the board of the Federal Reserve Bank of New York?

That question won’t get answered either.

]]> By: Dave Raithel http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry.html#comment-6182 Dave Raithel Tue, 01 Apr 2008 13:58:00 +0000 http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry-trade-unwind/#comment-6182 "Many people inside and outside the Federal Reserve System don't seem to appreciate that the US Treasury is dependent upon the primary dealers. Dealers like BSC, LEH and GS are the main outlet for funding all of the great ideas that emanate from Washington."<br/><br/>I suppose that "great ideas" is used ironically? I also prefer to start with "simple explanations" and get more complicated as details require: We still wage a stupid pointless war in Iraq, and no taxes pay for it. We don't even pay taxes to wage a more marginally justifiable war in Afghanistan. “Many people inside and outside the Federal Reserve System don’t seem to appreciate that the US Treasury is dependent upon the primary dealers. Dealers like BSC, LEH and GS are the main outlet for funding all of the great ideas that emanate from Washington.”

I suppose that “great ideas” is used ironically? I also prefer to start with “simple explanations” and get more complicated as details require: We still wage a stupid pointless war in Iraq, and no taxes pay for it. We don’t even pay taxes to wage a more marginally justifiable war in Afghanistan.

]]> By: Richard Kline http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry.html#comment-6179 Richard Kline Tue, 01 Apr 2008 13:41:00 +0000 http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry-trade-unwind/#comment-6179 " . . . Strip the Fed of its regulatory role." Hear, hear! One reason for the bungled auction back-up to the ibanks, not that I'm happy about it, is that the Fed is used to rigging the game in various and sundry ways, and so has been preoccupied with hush-hush fixes leading it to move late to take major, direct actions in what is now a _nine month long_ financial destabilization. We would be, and will be, much better off with a powerful, autonomous Federal Regulatory Auditor which acts by known, set policy in bank runs and collapses. <br/><br/>Not that I have any real info on the issue, but I've been of the view that there was a concerted assault on BSC rather than that the simply slipped under the waves. Not that I have any sympathy for them, but you don't lose $17B in days unless an awful lot of chits are called all at once. Yes, yes, losing the interbank dealing was the fatal poinard, but the whole event smells to me of a deliberate removal of the weakest player so that what capital is out there can be shared out among the survivors. This wasn't about payback per se, it's about survival going forward. If so, one can only infer negatively regarding the capitalization of the remaining big Ibanks. . . . It's a jungle out there, yessir. ” . . . Strip the Fed of its regulatory role.” Hear, hear! One reason for the bungled auction back-up to the ibanks, not that I’m happy about it, is that the Fed is used to rigging the game in various and sundry ways, and so has been preoccupied with hush-hush fixes leading it to move late to take major, direct actions in what is now a _nine month long_ financial destabilization. We would be, and will be, much better off with a powerful, autonomous Federal Regulatory Auditor which acts by known, set policy in bank runs and collapses.

Not that I have any real info on the issue, but I’ve been of the view that there was a concerted assault on BSC rather than that the simply slipped under the waves. Not that I have any sympathy for them, but you don’t lose $17B in days unless an awful lot of chits are called all at once. Yes, yes, losing the interbank dealing was the fatal poinard, but the whole event smells to me of a deliberate removal of the weakest player so that what capital is out there can be shared out among the survivors. This wasn’t about payback per se, it’s about survival going forward. If so, one can only infer negatively regarding the capitalization of the remaining big Ibanks. . . . It’s a jungle out there, yessir.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry.html#comment-6177 Anonymous Tue, 01 Apr 2008 13:15:00 +0000 http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry-trade-unwind/#comment-6177 Excellent post. Why is this FED action not corruption to the highest levels of government? How can investor now invest in the US when they know this goes on? Why is the dollar not collapsing even more? And finally where is the mainstream media on all this? Excellent post. Why is this FED action not corruption to the highest levels of government? How can investor now invest in the US when they know this goes on? Why is the dollar not collapsing even more? And finally where is the mainstream media on all this?

]]> By: Anonymous http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry.html#comment-6176 Anonymous Tue, 01 Apr 2008 13:11:00 +0000 http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry-trade-unwind/#comment-6176 ** What logic drove the Fed to pick LEH et al to survive and BSC to die? As and when any other of the major dealers become insolvent, will the Fed allow a market resolution? Is there an objective standard used by the Fed in picking winners and losers? If so, what is that standard?<br/><br/>the conspiracy theory is that it's revenge for 98 (they didn't help bail out LTCM). and there was me thinking a long memory process had something to do with xGARCH... ** What logic drove the Fed to pick LEH et al to survive and BSC to die? As and when any other of the major dealers become insolvent, will the Fed allow a market resolution? Is there an objective standard used by the Fed in picking winners and losers? If so, what is that standard?

the conspiracy theory is that it’s revenge for 98 (they didn’t help bail out LTCM). and there was me thinking a long memory process had something to do with xGARCH…

]]> By: Molly http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry.html#comment-6175 Molly Tue, 01 Apr 2008 12:29:00 +0000 http://www.nakedcapitalism.com/2008/04/bear-conspiracy-theories-and-carry-trade-unwind/#comment-6175 Yves - hats off for outstanding posts today - no joke :-) Yves – hats off for outstanding posts today – no joke :-)

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