Posts filed under “Bailouts”

Layman’s Explanation of AIG vs Bear vs Lehmann

Daily_show
I got called yesterday from the producers of The Daily Show, who asked for an explanation of this understandable to the "lay person."

Here is what I said to them:

• Lehman Brothers was like the little kid pulling the tail of a dog. You know the kid is going to get hurt eventually, and so no one is surprised when the dog turns around and bites the kid. But the kid only hurts himself, so no one really cares that much.

• Bear Stearns is the little pyro — the kid who was always playing with matches. He could harm not only himself, but burns his own house down, and indeed, he could have burnt down the entire neighborhood. The Fed stepped in not to protect him, but the rest of the block.

• AIG is the kid who accidentally stumbled into a bio-tech warfare lab . . . finds all these unlabeled vials, and heads out to the playground with a handful of them jammed into his pockets.

 

Alas, my second shot at The Daily Show, thwarted.

Previously:
Ritholtz on The Daily Show? (January 2006)   
http://bigpicture.typepad.com/comments/2006/01/ritholtz_on_the.html

Category: Bailouts, Derivatives, Media, Psychology, Taxes and Policy

Layman’s Explanation of AIG vs Bear vs Lehmann

Category: Bailouts, Derivatives, Media, Psychology, Taxes and Policy

Video: The Lessons of Bear Stearns

Category: Bailouts, Media

Bailout Nation, Soviet Style: Russian Trading Halt

Category: Bailouts, Taxes and Policy, Trading, War/Defense

AIG Bailout: $85B in Loans, 80% AIG Taxpayer Owned

Category: Bailouts, Federal Reserve, Taxes and Policy

Fed News Flow & Wrap Up

Category: Bailouts, Federal Reserve, Psychology

US Considering AIG “Conservatorship”

Bloomberg: Excerpt: The U.S. Treasury is considering taking over American International Group Inc. under a conservatorship as one option to address the insurer’s crisis, according to two people briefed on the discussions. Executives from AIG, bankers and Treasury and Federal Reserve officials are meeting today on the company’s situation at the New York Fed. A…Read More

Category: Bailouts, Federal Reserve, Taxes and Policy

50% Retracement of 2002-2007 Rally

It has long been my perspective that following the great crash of 2000, we would be stuck in a secular bear market, with cyclical rallies and sell offs. The lows set in October 2002/March 2003, up until the October 2007 highs, was an example of a cyclical rally. The selloff from October 2007 has been…Read More

Category: Bailouts, Contrary Indicators, Markets, Psychology, Technical Analysis, Trading

My Mea Culpa on Thain

Category: Bailouts, Corporate Management, Credit, M&A, Valuation

A Disasterous Rate Cut ?

Category: Bailouts, Federal Reserve, Fixed Income/Interest Rates, Inflation