BREAKING NEWS- Siv Patel who owns a convenience store down the road from me has put a bid in to buy LEH for .03/share plus it’s corporate building ONLY if the Fed agrees to backstop any losses and agrees to finance the building purchase. He tells me the Bernanke will be holding a conference call on this matter shortly.

0.03/share for preferred also? LEH, i think you should take the deal.

Fuckers – I still have about 5 hours to pull out the bazooka.

Wait a minute, I used up the bazooka-power last weekend. Oh Shit!!!

wondering why the skf was laying dormant last few weeks, now it appears like Vesuvius, it was accumulating hot magma

The banks blinked.

http://biz.yahoo.com/ap/080914/lehman_brothers.html

Banks seen offering plan to restore confidence
Sunday September 14, 6:32 pm ET
By Joe Bel Bruno and Marty Crutsinger, AP Business Writer
Lehman’s future in doubt, banks seen unveiling plan to restore confidence in financial system

NEW YORK (AP) — As the outlook for Lehman Brothers’ future appeared to dim Sunday, U.S. and foreign banks joined forces to create a plan aimed at inoculating the global financial system against the investment bank’s possible failure, a top investment banking official said.

Banks are in tense talks to create a pool of money worth up to $50 billion to lend troubled financial companies, the official said on condition of anonymity because the discussions were ongoing. And officials at the U.S. Treasury and the Federal Reserve are expected to say they are prepared to be more generous in the Fed’s emergency lending program for commercial and investment banks .

The plan comes as top government officials and Wall Street executives hold marathon meetings to save Lehman Brothers. The meetings have failed to find a buyer for the troubled 158-year-old investment bank, raising worries that its likely collapse would disrupt global financial markets.

The official also said the U.S. Treasury Department and the Federal Reserve are pushing Bank of America Corp. to buy Merrill Lynch & Co., though talks are still preliminary.

Expectations that Lehman would survive as a company dimmed Sunday afternoon after Barclays PLC withdrew its bid to buy the investment bank.

Barclays’ and Bank of America Corp. were considered front-runners to buy Lehman.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

WMT and TGT, ah I like that.

There’s no reason the futures should have bounced there, these 300 point stop losses are a bit obvious.

Cursing should start tomorrow. Cant wait. Best part of the site.

Fly,

All those positions will be forcibly liquidated ASAP? Or do they have some time to “work them?”

What’s your best bet for what happens tomorrow?

-DT

So you mean they’ll be unwinding on the open market? That could be lots of fun.

The dollar is tanking a bit. That should help the commodity names, no? As far as cursing goes, does the Dow have to close below 11k? or just trade below it intraday?

Finally, Where will the Dow close tomorrow?

-DT

My vote is if the Dow hits 11,000 or less intraday, Fly should be free to begin cursing.

Adding, anybody smell an emergency rate cut in the air this week?

Now we are hearing about a $50 billion dollar bailout fund set up by the world bank tonight to help ease credit issues by the Lehman failure that is expected shortly…..hence why we see a bounce in the futures and a fall in the Yen futures…..who is bluffing and who will actually break from the game to save their own ass….now that will be key to the market tommorow…..and will determine if we crash or hold up….IMO

Where are you guys watching the overseas market?

BAC is about to make its second profoundly stupid purchase. Buying MER at $23 has to be even dumber than buying Countrywide in the first place. MER equity would have been virtually free by Friday. What kind of grotesque, twisted illegal payback scheme is BAC management receiving to do this transaction which so insane on the surface?

Fly,

What’s the play here? Yes, I am just an Internet leach but I need money too.

Please throw us all a bone!!!!

they are on the front page of cme.com as well

F-ing Loser- The play is (was) short the futures at the close this past Friday and then cover about 6:15 PM today.

He has already violated the rules about 5 posts ago …

He used the word “Fargin’”, which in my books and in the books of many an Irishman would be a swear word.

Even an Irishman would admit Fargin’ is swearing.

TraderCaddy,

Since I am a F-ing loser and have balls the size of Tic Tacs, I missed that one.

I need a new play that I can’t F-up.

Thanks in advance….

good news…..asia closed for holidays tonight and tommorow….so the real fireworks will be at 2am….Europe….

The play would be to ease into GS or MS on any gap down at the open. They can’t remain as independents if MER goes with BAC. If they don’t gap down (it’s possible) step aside, turn off the computer, and enjoy the day.
Raymond James and some of the regionals may be good plays on the long side.
Gotta wait to make sure they get trashed real good at the open.

Bill Gross is a cunt.

F-ing loser,

IMHO, if you’re not already positioned, you will have a hard time making any right moves, at least before 10:30 a.m.

The best advice is probably to wait until Monday afternoon to see how things shake out.

Are asian mrkts closed? I found this list of market holidays, not sure of accuracy:

SATURDAY, SEPT 13

SOUTH KOREA – Chuseok, Full Moon Festival – Market Holiday

SUNDAY, SEPT 14

SOUTH KOREA – Chuseok, Full Moon Festival – Market Holiday

TAIWAN – Mid-Autumn Moon Festival – Market Holiday (No addition day off for it’s falling on weekend)

MONDAY, SEPT 15

CHINA – Mid-Autumn Festival – Market Holiday

HONG KONG – The day following Chinese Mid-Autumn Festival – Market Holiday

JAPAN – Respect for the Aged Day – Market Holiday

SOUTH KOREA – Chuseok, Full Moon Festival – Market Holiday

Fucking loser, if you don’t know what to do, and aren’t already positioned, do nothing.

Why pay commission to guess and probaby lose money?

I can tell you with some certainty that if do something without having an idea or an edge you’re gonna lose money.

Guys, it’s cool. Jim Cramer says that Lehman doesn’t matter. He said that as long as AIG gets the $40 billion in needs (LOL) that he’s a “buyer not a seller.”

Whew! Confidence restored!

-DT

And for my most important comment – think Buffet.

Day-to-day is noise, the fundamentals are what matter in reality, over time.

Even if we end the day higher (not calling for that) it doesn’t change the reality of the situation. A BoA for MER is a bad thing, LEH failing is a bad thing, and neither one alleviates the problems the financial system faces.

Same goes for a special 50b package from God-knows-who.

BofA must be expecting major share price erosion in their own equity for them to be bidding $29 for MER based on of BofA’s Friday close. It makes no sense anyway, let alone at $29/share.

F-ing Loser….you have to be at least 18 years old to play with a Scott Trade account.

The Fed is going to cut a full basis point in the morning.

Youre welcome.

That was last week Ari. Fucking-A, lay off the blow.

wow, and there’s the BOA deal

John Thain, I think you meant

ZING!

Meatballs is saying it’s an all stock deal.

BAC = Jesuits, they want it, just like they did Countrywide. Receivership.

Feudal system restored.

The Fly is God.
SKF may open over 135 or something insane like that.

Great fucking server, Fly. Seriously, how difficult is it to get a fucking server than can host traffic?

Actually Siv, I Jewbag McPhee have decided to offer EU .03/share. So lick my jewballs.

Would it be that fucking difficult to get a server that could handle your traffic? Quit dicking around with your little PPT program. Call a fucking hosting company, pay $100 a month, and tell your gravy slinging “IT guy” to jump in a bag of dicks.

Shut up you little turd. We own our own server. The IT guy is away and now back. We’ll be up in no time.

Relax. I am not Lehman or some guy you can bully around. I’ll have your arms punch off for you.

Lehman for sale on EBAY…

http://cgi.ebay.com/Lehman-Brothers_W0QQitemZ110289318047QQcmdZViewItem?hash=item110289318047&_trkparms=72:116339:166:265:12240:1318&_trksid=p3286.c0.m14

SQL injection attack, or what? Fuckers.

Give ‘em hell you meatball loving IT guy.

JUST KIDDING

Thanks guys, I will just sit on the side lines tomorrow.

One last question. What do you think the BAC/MER deal will do to BAC Stock? I backed up the truck about a year ago and have been averaging down ever since.

If BAC pops on the news should I unload?

Thanks again and good luck to everyone!!

Expect BAC to open down 5. They WAY overpaid for MER. The arbs will be all over BAC. And, since it’s an all stock deal, the sellers will lean on MER too.

CNBC reporting JPM buying WM?

Fly,

Thanks for the quick reply. I guess BAC is now a core holding for me. Oh well, at least my MBI holdings have been doing pretty good lately.

Thanks again!!

F- loser:

In order to hedge your BAC long, might I suggest selling short MER at the open or going long SKF?

wow. crazy weekend. glad i bought the SKF at the close on friday. of course now watch everyone go out and buy bank stocks tomorrow, just to be ‘contrarian’.

BAC’s buy price was just a way for BAC to let the world know: when you trade with BAC, the Fed is your counter party.

Fed accepting equities…..BAC will turn around and sell MER to the Fed…..a big cash infusion for BAC ??

Never mind Fly …. Futures have both gold and copper up with dollar down …. oil may want to test support here before moving up again but a rate cut could change that.

Might be wiser to buy UYG on close. Too late to buy SKF now. Another rate cut wouldn’t surprise me a bit. The Three Stooges (Bernanke, Paulson, & Cox) seem to have a hard-on for shorts in general and iBankCoin in particular. Such is life in the Union of Soviet Socialist American States.

Das Vidanya, Comrades.

Meanwhile, crude below $100.

-DT

I can hardly wait to hear Kudlow & Luskin’s spin on these End Times for Wall St. We can only hope these are End Times for apparatchnik talking heads.

Pay attention to those who called this all along like The Fly, The Jake, The Fleck, Marc Faber, Nouriel Roubini,….

Nouriel Roubini

“This is indeed the most severe financial crisis since the Great Depression and occurring at a time when the US is falling in a now severe consumer led recession. The vicious interaction between a systemic financial and banking crisis and a severe economic contraction will get much worse before there is any bottom to it. We are only in the third inning of a nine innings economic and financial crisis. And the only light at the end of the tunnel is the one of the incoming train wreck.”

Mea Culpa -

“This result is far different than what I had envisioned for the company. It was my view three weeks ago, that the company must merge; that management would resist a takeover; and that the merger would be hostile.

It was further my belief that the company’s assets were not in devastatingly bad condition. That if given time they could be worked out without a major negative impact on shareholders. Moreover, it appeared that the company had generated $3.5 billion in revenue and $0.6 billion in pretax profit excluding the write downs of questioned assets in its third fiscal quarter (ended August 31). Consequently, I moved the rating on the stock up to a Buy.

This view was clearly incorrect. After extensive negotiation with other financial companies and the effected government divisions, no buyer was found and the government chose not to intervene to assist the company. Thus, we are stepping into uncharted territory.”

Hey guys, no joke here…need help

I was one of the lucky ones to have bought Merrill Lynch at the close on Friday. It was a substantial amount to me, and I was wondering how should I play this out.

As of now Merrill @ $23.11. Isn’t the share prices suppose to be at $29?

Many thanks,
HC

Morning Juice

Last time Kudlow “sort of” admitted defeat, it marked a short term bottom.

Everyone is talking these investment banks, how is it that the monolines are still around?

anyone else thinking about selling SKF at the open? up 15% in pre market, i’m thinkin about taking profits before the Plunge Protection Co. Steps in.

Fly are you a buyer or a seller here?

I am just asking because Merril was heavily shorted as of Friday, therefore wouldn’t there be a huge short squeeze?

Thanks for your help Boomer.

“J”…what the fuck is your problem? I am just asking a question.

Yo, the refiners??

WNR way down in pre-market>>>

Anyone think we can rally outta the hole for 2 – 3 days? I think thats possible. I’m thinking this move lower in oil/gold is more likely a forced unwinding that will rewind & can be bought.

XLF’s at $19.76. It’s been holding at $19.75…

I can’t take it anymore That idiot Pisani was just babbling about a mid-day rally.

Juice, there will be some kind of idiot parade rally after the initial wreckage. Nothing more than more trading opportunity. This thing is going to get ugly. Clubbing baby seal ugly.

Crack Spread update: $15.26

Looks like my calculations are correct, as all stocks such as VLO, TSO, WNR, ALJ, etc … are all probably going to open at least 10% lower, just as the crack spread is at least 10% lower from over $18.

Cashin thinks there might be a capitulation today. He’s one of the few who knows what’s he’s talking about.

wow. i don’t think i’ve ever seen the dow futures this low.

oil is a wild card. could be a moderating factor in the market decline.

So why is SKF only at 126??? I want it to be higher!

You sure were right about spin, Boca. I knew they’d bring that fool Cramer out.

PPT in full effect this AM. What kind of heebery is this?

Gee, I don’t know. Perhaps it’s because the Soviet Central Bank now accepts equities as collateral? They’re not about to take a loss on them.

recusancy: brick dropped

GS is the cream of the crop and thats being proven now – Its a damaged stock not a damaged company.

When the dust settles only MS and GS will remain

Took about 10 minutes but I bought and sold my usual SMH for about a 2% gain. I am now taping my fingers to the back of the chair and will just watch for now.
Noting Trin is below 60 which is a buy. I would like to see the VIX get into at least the mid-30s though.

OK, FUCK IT … now this is NOT funny . time to change brokers.

—————

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Todd Harrison

09:36:55 AM

position in uso

Gate Sniffage

* I just heard someone on TV say “the good news is that oil is down $5.” That’s NOT good news through the lens of deflation as it’s endemic of slowing global growth. I will, so it’s said, nibble on some USO (small) with an ear towards a rate cut and an eye towards a bounce.

* I’ll be scanning my screens for green beans this morning but it–and everything–is purely a trade. First blush, I’ll note that Amazon (AMZN) is only down $1.70. That, to me, hints at some underlying demand.

* We’ve spoken about The State of the Art in the financial industry for some time. With three of the five top-tier brokers–Bear Stearns, Lehman (LEH) Merrill (MER)–disappearing this year, it’s safe to say that the future is now. It’s not something one would wish for–and our hearts to out to our fallen friends–but I’ll again offer that it was necessary medicine on the road to recovery.

* Those of us who traded the Asian Contagion, LTCM, the dot.com implosion and the aftermath of 9/11 will tell you that price discovery is a process rather than a point. It’s entirely alright to be opportunistic but it’s more important to remain disciplined. These are unchartered waters and risk management should trump reward chasing.

R.P.

———————————-

MV Respect

09:30:08 AM

No positions in stocks mentioned.

Minyan Jeff Saut’s Call For This Week
Warren Buffett is fond of saying, “You only find out who’s swimming naked when the tide goes out;” and evidentially the biggest “nudie” is Merrill Lynch (MER) since the Illuminati decided to save it and let Lehman (LEH) “go.”

Clearly, Czar Paulson does not think the government should be in the business of assuming credit derivative risks (CDS’s, etc.), which is the real story going forward. Plainly, dealing with the derivative, and counterparty, risks will be the next piece of the puzzle as things continue to get curiouser and curiouser. The ideal daily pattern for today would be for a hard down opening followed by a rally attempt, which fails, leading to an afternoon downside “washout” and then firming into the close.

Any closing strength should be viewed as a positive since that would likely indicate a skein of positive closes. While more conservative types should probably wait for the aforementioned pattern, more aggressive participants should buy the hard down opening on the belief that Paulson and Bernanke are cognizant of markets and will not want to see their “trifecta” come unraveled. Consequently, the Fed will be pumping money, short-sellers will be monitored, corporations will be urged to institute share buybacks, and mutual funds will be forced to buy. Being value buyers, the institutions will likely buy the drugs and food stocks first and then technology. As for my firm, we will be using ETFs.

http://www.minyanville.com/articles/banks-Wall-Street-financials-crisis/index/a/18956

a good look technical look from jeff cooper, a Gann-ophile

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