Yesterday Lehman was selling a part of their bank to the Koreans, today it’s Merrill.
I guess there aren’t anymore Chinese, European and Middle Eastern men to con. Also, in an odd twist of fate, the Korean won is getting bludgeoned on a daily basis.
“We have yet to reach an agreement because of differences in assessing the value of assets,” Lee Chol Hwi said yesterday in an interview in Seoul. “We have been seeking to buy a significant amount, but a deal may be difficult at this rate.”
All very odd, no?
I can see the sales pitch now: “Take your filthy Korean wons see. Take them, see, and buy part of our bank see. We’ll sell it to you real cheap, see. Hey, Johnny, how cheap can we sell it?
Johnny: “We can sell it for 5 billion bux [sic].”
“See, 5 billion bucks for a piece of America, see. Do it and I’ll throw in a commodity fund too, see. They’re cheap too, right.”
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I wish Bugsy Siegel was my broker.
You forget the last, important part of our generous offer: “…or we break your fuckin’ legs, SEE?”
but cramer says it’s okay to buy all the banks!
the koreans must watch the show.
Have you ever done business with a Korean?
I have.
It’s like a shell game without the ball.
This market is toast!
Yeah, yeah. That’s right, see?
True Story– The Koreans just bought the company my dad works for, Taylor Energy. They bought it when Oil was at $140, I’m sure they got ripped off.
A weak won is my best friend as an importer of Korean products. Strong won – I eat crow. Weak won – my dick hangs low.
Market Fool is dead on. Doing business with Koreans is totally cryptic. Verbal contracts with partial information is the way deals are done with foreigners. Thank God I can play poker or else I’d be toast.
It doesn’t matter anymore! Obama is dead, but all hail Palin! She’ll solve all of our trouble.
From now on, those Lehman guys will be armed when they negotiate.
-DT
heh heh, the Koreans should be more worried about the financials than madcow. They were smart to let the dumb money flow in first but now they’re suffering from the effects of time. It’s like that mediocre chick at work. At first you think nothing of her. Then after some time she doesn’t seem that bad and grows on you. Don’t do it!!!
MUFG has no plans to invest in Lehman: executive
Denninger has it right , as usual, on these market rumors.
Downgrades
Legg Mason LM – Credit Suisse – Neutral » Underperform
I’m not buying right now but keep an eye on GLDD.
Great call on CLNE fly. I have been holding Dec 20 calls for a few months now and what a gain!
Covered my LM. Probably prematurely, but I’ll take it.
Fly, great call.
After a week of shorting SMH daytrading long SMH here should be profitable.
Mr Practical
08:41:30 AM
Position in WFC
Sham Revealed
Yesterday Wells Fargo (WFC) raised $2 billion in a bond offering. The cost of the capital? 9.75%. When the top rate it can lend at is 6% the only way it can make money on this capital is to lever it… increase the risk.
I ask you, why would a company that just raised its dividend go out and raise dilutive capital (the cost of the capital will be a drag on earnings)? Since the only reason is to get capital ratios back in line, something a dividend cut might have done, we can clearly see that the dividend raise was a sham to make things look better than they are.
Financial companies are in worse shape, not better, than they were a few months ago. They desperately need to raise capital and anyone buying stocks at these levels is taking a huge risk that they will be caught in the middle of that process.
Risk is high.
————–
Mr Practical
09:14:53 AM
Position in AIG
Getting Wider
American International Group (AIG) CDS just widened another 30 bps this morning. It is now 400 over.
Ominous.