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Bear bet that netted £141m throws fresh suspicion on collapse
It seems that Wall St. are trying to blame the straw for breaking the camel’s back. As The Independent report today:
Suspicion over the collapse of Bear Stearns is centring on a massive options trade, less than two weeks before the historic investment bank went under in March, by which a single investor made a profit of more than $270m (£141m) on a bet against the company’s share price.
In a “whodunnit†that has gripped Wall Street for months, many traders and senior executives at Bear Stearns have become convinced the firm was brought down by a conspiracy of rivals and hedge…
13Aug2008 | The Gold Blog | Comments Off | ContinuedFinancial Correction Center
“Fed keeps short-term interest rate at 2%”, says today’s big financial headline. Stock market investors loved it. They bid up the Dow 331 points. “The correction is over,” they seemed to say.
The Bernanke team knew it would be damned for sending the U.S. into recession if it raised rates. It knew too that it would be damned for allowing inflation out of its cage if it cut them. So it decided to do nothing.
“Although downside risks to growth remain,” said a Fed spokesman, “the upside risks to inflation are also of significant concern to the committee.”
Here at The Daily Reckoning…
7Aug2008 | Daily Reckoning | Comments Off | ContinuedThe Fraud of the Great Moderation
The beat goes on – one sector gets pumped up…and then it gets whacked.
Jim Cramer says he’s never seen anything like it…
Not the crash of Drexel Burnham Lambert in the ’80s…not the Asian currency crisis…not the LongTerm Capital Management blowup…not the dotcom bust…
Now, he says, the mood of gloom on Wall Street just gets worse and worse…with no sign of let up. Thousands of layoffs. Stocks in steady decline.
That makes us a little sad, here at The Daily Reckoning headquarters. We don’t like to kick an industry when it is down…and we like kicking Wall Street.
But you can see why the former Masters…
25Jun2008 | Daily Reckoning | Comments Off | Continued
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