LOL - JP Morgan's shares jumped $3.77 (10.32%) today in response to purchasing Bear Stearns for $2 per share (total of $236.2 million). This means that today, JPM’s market cap increased by 12.8 BILLION DOLLARS... which makes JPM’s acquisition of Bear Stearns worth $110 per share :wtf: What a nice investment the FED made, ahem, JP Morgan too...
spinvinyl
quote:
Originally posted by gehzumteufel
ok im unsure i understand something..what is the difference between a "write down" and a "write off" or are they one and the same?
Also to the comment about how BSC dropped in value so fast. Basically they weren't honest about their value and they hold so much toxic paper that they can't even be properly valued. There is no market to unload what they have, if you don't have a market to sell your junk you can't properly price it.
It's nice to see a few people on here genuinely concerned/interested in our economy. I've held off for a long time commenting in this thread because usually it turns into some argument amongst morons. To ninetyninej keep up what you do and learn how to profit from these things. I've known this was gonna happen for a few years, I tried to tell several people not to buy a house, etc. Of course they listened to their realtor instead of me, now they're losing their houses. Personally I feel this country needs a massive correction, something painful enough to get people away from reality tv shows and see what's really going on. This country needs to start encouraging saving instead of spending if we want to continue to prosper. For me the devaluation in the dollar amongst other currencies has been great, I own a hedge fund and specialize in FOREX, however it's not good for the overall economy if it's sustained longterm. If you want to read some good blogs/sites that are way ahead of the curve and portray how things really are check out:
http://bigpicture.typepad.com/
http://calculatedrisk.blogspot.com/
the REAL govt statistics:
http://www.shadowstats.com/
-spinvinyl
gehzumteufel
spin: im 100% with you there. when i worked at wells fargo home mortgage, i started in jun 2005. by dec 2005 i was saying that the housing market is going to kill our economy because everyone is buying houses they cant afford, buying cars that stretch them even thinner, and running up their credit cards. i couldnt believe the state we were in. and this was almost 3 years ago. all my loan officer coworkers didnt believe me when i said the housing market will crash and take the economy with it. now here it is.
spinvinyl
gehz... yep spot on my friend, I didn't mean to talk down to anyone either, i realize a lot of people on here are kinda young/inexperienced. You are absolutely right on all the MEW (mortgage equity extraction) that went on via HELOCs. The motto was 'the value only goes up' so the house was viewed as an atm. Now people owe more than their house is worth and people are just walking away. California is a non recourse state so people can default and not lose anything but the house, just a little damaged credit for a few years. Now with the 1099 reprieve they don't even have to pay tax on the difference of a short sale. This is what killed the tech guys in 2000 when tech stocks crashed. People had options that were way under water but had to still pay tax on the difference since it's viewed as income. There wasn't a bailout then though! If I could go back 5 years I woulda bought a house, re-fi'd several times, bought some nice cars and mailed in the keys, but I tend to do things the right way. Did you happen to work for Countrywide? Was kinda nice seeing ol' tan man getting grilled by Congress, I hope he gets the jail time he deserves.
-spinvinyl
stefanoc
quote:
Originally posted by gehzumteufel
ok im unsure i understand something..what is the difference between a "write down" and a "write off" or are they one and the same?
they are used interchangeably meaning getting debt out from the financials. but i never really knew that they actually both have different definitions.
gehzumteufel
quote:
Originally posted by spinvinyl
gehz... yep spot on my friend, I didn't mean to talk down to anyone either, i realize a lot of people on here are kinda young/inexperienced. You are absolutely right on all the MEW (mortgage equity extraction) that went on via HELOCs. The motto was 'the value only goes up' so the house was viewed as an atm. Now people owe more than their house is worth and people are just walking away. California is a non recourse state so people can default and not lose anything but the house, just a little damaged credit for a few years. Now with the 1099 reprieve they don't even have to pay tax on the difference of a short sale. This is what killed the tech guys in 2000 when tech stocks crashed. People had options that were way under water but had to still pay tax on the difference since it's viewed as income. There wasn't a bailout then though! If I could go back 5 years I woulda bought a house, re-fi'd several times, bought some nice cars and mailed in the keys, but I tend to do things the right way. Did you happen to work for Countrywide? Was kinda nice seeing ol' tan man getting grilled by Congress, I hope he gets the jail time he deserves.
-spinvinyl
nah only worked for wells. got laid off when the market first slowed down and decided to get out of the mortgage industry.
but yeah your totally right about the house is their atm. sad but totally true. i saw so many people already at 80% LTV and they would take out a heloc that would push them to 95%LTV. then 1yr later the houses were selling for less than the total mortgages on the house. pretty bad.
but in the next 6 months to 1 year is a good time to buy!!!!!!!! LOL
stefanoc
quote:
Originally posted by diskodave
LOL - JP Morgan's shares jumped $3.77 (10.32%) today in response to purchasing Bear Stearns for $2 per share (total of $236.2 million). This means that today, JPM’s market cap increased by 12.8 BILLION DOLLARS... which makes JPM’s acquisition of Bear Stearns worth $110 per share :wtf: What a nice investment the FED made, ahem, JP Morgan too...
heres the funny thing: JP Morgan shares performed very well because morgan bought BSC without raising any capital and no expense. well the only expense is the fed rate. if this is allowed, then why dont they let microsoft buy yahoo just like that as well?
i dont care how fake the book value is, let them go broke and let the free market decide how much the share price should be. even if they go broke, how about FDIC insurance?
and finally and the worst of them all, why the offer so low? the share prices today trading higher than $2 (around 4 or $5) is a sign that this company is only worth that low because of all the pressures against them. the fed is just great for this kind of bs. also remember that the fed was originated by Mr. J. P. Morgan along with Rockefeller and others as well.
llavoe
quote:
Originally posted by stefanoc
then why dont they let microsoft buy yahoo just like that as well?
Yahoo felt that the offer was too small...
Also, it is a Recession, and it always has been a recession. Why has it not been announced publicly? If it is announced publicly, we will be 2x worse off than we are now. The dollar will be literally worthless, and all hell will break loose inside the US.
stefanoc
quote:
Originally posted by llavoe
Yahoo felt that the offer was too small...
Also, it is a Recession, and it always has been a recession. Why has it not been announced publicly? If it is announced publicly, we will be 2x worse off than we are now. The dollar will be literally worthless, and all hell will break loose inside the US.
i dont know whether you took my yahoo comment as a joke or not, but it was a joke.
people dont trust anyone saying 'were in recession' unless the president says so.
llavoe
quote:
Originally posted by stefanoc
people dont trust anyone saying 'were in recession' unless the president says so.
Bush is never going to say that.
spinvinyl
yeah really, I mean Bush didn't even know gas prices we're expected to go higher....
