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Old 10-18-2008, 03:32 PM   #41
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Go tell that to the Lehman or Wamu preferred holders.
"Higher" is a relative term when you're standing on a pile of crap!
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Old 10-18-2008, 03:38 PM   #42
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Go tell that to the Lehman or Wamu preferred holders.

There are plenty of preferred shares out there that Are yielding upwards of 10%
except that Goldman and GE are the cream of the crop and are very unlikely to go under.

back in the 1800's JP Morgan was king of Wall Street. Goldman Sachs has had that role for something like 20 years now if not longer
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Old 10-18-2008, 04:55 PM   #43
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I'm pretty sure the same favorable terms are available to anyone with a few billion to invest.

Preferred shares have a higher priority during bankruptcy proceedings and in some cases are convertible into common stock shares.
The British government is getting 12% on the preferred shares it issued to British banks. Uncle Sam is getting ~12% from AIG for a loan which are ahead of preferred shareholders.
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Old 10-19-2008, 06:39 AM   #44
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except that Goldman and GE are the cream of the crop and are very unlikely to go under.

back in the 1800's JP Morgan was king of Wall Street. Goldman Sachs has had that role for something like 20 years now if not longer
Uh no. "cream of the crop" is when you don't have to accept payday loan terms in order to raise emergency equity. Actually, you could argue that "cream of the crop" if when you never have to raise emergency capital at all.

As for being a premier company, yada yada yada... There are several of the largest banks in the UK that have been around for hundreds of years and without their injection of capital last week they wouldn't be here this week.
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Old 10-19-2008, 08:26 AM   #45
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so why didn't lehman get any emergency funding? goldman had a lot of CP outstanding and that created a problem for them
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Old 10-19-2008, 08:58 AM   #46
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so why didn't lehman get any emergency funding? goldman had a lot of CP outstanding and that created a problem for them
Lehman was an experiment to determine the extent of actual "systemic" risk. Plenty of people (several of them on this board, too) were advocating a "let them all go bankrupt and the market will sort it out" philosophy. The free market disciples in power were largely sympathetic to this view and were groping for a place to draw the line. Lehman was it.

Many now believe that letting Lehman go was a huge mistake as all manner of unintended consequences emerged (not least of which the potential collapse of the CP and money market). Now the world's governments understand that the entire financial system is at stake, not just individual companies. And thus we've moved to a global systematic bailout.
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Old 10-19-2008, 03:15 PM   #47
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so why didn't lehman get any emergency funding? goldman had a lot of CP outstanding and that created a problem for them
Apparently Lehman had insufficient assets to allow a gov't bailout per the rules in place at the time. Private funding didn't materialize because they saw the problem as a dominoe effect. They'd bail out Lehman and next weekend there would be another imminent failure asking for them to intervene again.

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Old 10-19-2008, 05:44 PM   #48
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so why didn't lehman get any emergency funding? goldman had a lot of CP outstanding and that created a problem for them
Sec. Paulson didn't work for Lehman, he did work for GS.
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Old 10-19-2008, 06:49 PM   #49
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paulson didn't work for aig, fannie or freddie or an auto company either. when robert rubin was sec treasury they had a plan to do the same thing to the banks we are doing now and he worked for GS as well
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Old 10-20-2008, 09:11 AM   #50
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so why didn't lehman get any emergency funding? goldman had a lot of CP outstanding and that created a problem for them
Not enough collateral
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Old 10-20-2008, 10:07 AM   #51
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thank you for listing all the reasons why Goldman Sachs is still around and not Lehman or Bear or ML
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Old 10-20-2008, 08:05 PM   #52
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thank you for listing all the reasons why Goldman Sachs is still around and not Lehman or Bear or ML
List?

1. Better Management

end of list
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Old 10-20-2008, 08:58 PM   #53
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"Some pretty intelligent people are now buying stocks... Unless we are to have a panic -- which no one seriously believes, stocks have hit bottom."
- R. W. McNeal, financial analyst in October 1929
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Old 10-21-2008, 03:49 PM   #54
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Paulson bailing out AIG didn't hurt GS.
Although it was not widely known, Goldman, a Wall Street stalwart that had seemed immune to its rivals’ woes, was A.I.G.’s largest trading partner, according to six people close to the insurer who requested anonymity because of confidentiality agreements. A collapse of the insurer threatened to leave a hole of as much as $20 billion in Goldman’s side.
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Old 10-22-2008, 07:25 AM   #55
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Goldman was both long and short on mortgages. it went long with clients' money in their hedge funds that invested in these and short with the firm's money.
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Old 10-22-2008, 09:15 AM   #56
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WaaHoo! market down 350 points this morning - got your seatbelts securely fastened? We may experience a bit of turbulence today....

Dollar Bill On Floor Sends Wall Street Into Frenzy | The Onion - America's Finest News Source
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Old 10-22-2008, 09:19 AM   #57
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WaaHoo! market down 350 points this morning - got your seatbelts securely fastened? We may experience a bit of turbulence today....
Okay, that was funny
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"My friend's friend Tim Formato? He's on the board at Westminster Securities and he says he touched it. He said it was warm and soft and wonderful. He said he knows where it is now, and I can put in an option on seeing it tomorrow for only $85."
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Old 10-22-2008, 11:18 AM   #58
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I think SNL did a little jab at this on their 'news' skit.

They talk about Warren Buffet telling people not to panic, and the news person comments something like:

"There you have it Folks, no need to panic about this drop in the market. As long as you are one of the richest men on the face of the planet, you have nothing to fear."

That cracked me up. Then I cried. <j/k>

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