Remorse or No? For Lehman..

harbinger13

We know - not to look down on thy neighbor when he wails in misery.

But sorry - I do not have remorse for LB. Sad yes - but no remorse. I am basing this only on logical reasoning.

When the whole market was going up and UP, every one got fat bonus packs - and I am not sure if 'they' included us in the PARTY. When a small investor bet incorrectly on Stock - or bet on the wrong spread - and the Banks made money; 'they' gave a statement/reasoning saying the investor did NOT 'study' the market or trends.

Well LB did not study the trends either! Big time. Evolution took over - only the competent survive.

Goodbye Brothers.

Ok other relevant reads if people are interested

Lehman’s bonus clawback

http://ftalphaville.ft.com/blog/2008/09/15/15893/lehmans-bonus-clawback/

Fun with Bloomberg functions:

Apparently Pimco which was high on the bonds of Freddie and Fannie is going to suffer this week
http://ftalphaville.ft.com/blog/2008/09/15/15891/fun-with-bloomberg-functions-lehman-bonds-edition/

One more - Citi and BoNY have a lot of exposure to LB's debt. It is actually fun to see how a creditor will ask a debtor - when both of them are 'brothers'. When it happens to a small time owner, they send a lengthy (incomprehensible) Court Order - that too which is delivered by a Constable!

http://www.ft.com/cms/s/0/b7634a0a-8315-11dd-907e-000077b07658.html

Hubris of Fuld - similar to Cayne of erstwhile Bear Stearns.

http://www.ft.com/cms/s/0/e5f99648-8285-11dd-a019-000077b07658.html?nclick_check=1

A brave decision on Lehman

http://www.ft.com/cms/s/0/adf47e74-8312-11dd-907e-000077b07658.html

LisbonLaura

Privatise the profit - Socialise the debt.

Even without a 'govt.' (ie tax payer, without permisson, bailout) the tax payer will still pay
.......... until he/she is out of work

.......... & then?

Conrad

I've always had a distrust for experts. Lehman was chock full of em.

This is a true story;

In 06/07 I sought a fund for German property. Amongst others I called LB to see if they had plans for such a fund. I was greeted with smug arrogance - I was told they offered real estate funds for the UK and USA and had no plans to alter the stratergy.

I actually had quite a heated exchange an assistant fund manager as I was astounded they were continuing to invest in the US and UK.
Honestly, the guy was like so many other robots, completely trapped in a narrow reality tunnel, unable to think for himself.

Another I called was Standard Life and again the ignorance and arrogance came in equal leasure.

Another was the firm called 'Assetz'. They assured me thier chairman had his fingure on the pulse (this was spring 07) and felt UK real estate could only go up! Indeed they said many investors followed the chairmans regular economic / investment forecasts!

Now, here I am. A thick humble mortgage broker, not an expert, yet I thought the looming crisis so serious that I bailed out of B2L in 06 / 07.

Please, everyone, next time you hear an expert spouting, think twice, think for yourself.

Lets stop hanging onto the utterances of business leaders - most have not ghot a clue. They are merely good at parties, have charisma. Think how many times a day you get irritated by a product / service - thats down to the people at the top being blissfuly unaware of your experiences.

fatpig_2

Buy the Loot next month. There'll be loads of 2nd hand Porsches for sale and going really cheap.

harbinger13

fatpig wrote: »

Buy the Loot next month. There'll be loads of 2nd hand Porsches for sale and going really cheap.

Doubt it if LB employees have learned any thing from their boss Fuld - it is Hubris - Never let go something you own dearly.

http://www.ft.com/cms/s/0/e5f99648-8...nclick_check=1

carolt

Sorry - can't share others' jubilation.

When I read last night that LB and Merrill were going down, I felt shock and - I admit it - fear. This is clearly not all going to be neatly contained, the (poor sodding) US taxpayer footing the bill - this is going to be serious house of cards stuff.

Who could have predicted these 2 were going to go? How many more? Very glad I don't work in banking - but collapses of this scale don't happen without affecting us all.

I pray I'm wrong but the 1930's were not a happy decade.

LisbonLaura

Conrad wrote: »

Another was the firm called 'Assetz'. They assured me thier chairman had his fingure on the pulse (this was spring 07) and felt UK real estate could only go up! Indeed they said many investors followed the chairmans regular economic / investment forecasts!
.

It's true, we do.........they are hilarious.

The guy is completely bonkers

moanymoany

Conrad, with you all the way. The experts become so involved with their own hype they cannot see beyond it. Experts on the beeb have been driving me mad with frustration for ages - telling everyone it was a 'blip' - all over by Christmas mentality.

It was only about 8 weeks ago one beeb pundit laughed at someone who said the market was going down and wasn't going to stop anytime soon. He sided with and agreed with the bod who said the housing market was stabilising against the other!

After Northern Rock the writing was on the wall for anyone who wanted to read it. As I've said before, if one is involved in the housing market in a business way, one should keep the finger on the pulse.

LisbonLaura

carolt wrote: »

Who could have predicted these 2 were going to go? .

Actually quite a few people carolt.

One guy 'Cgnao' was calling the derivative meltdown on here some years ago.

He is still around on https://www.greenenergyinvestors.com

GDB2222

carolt wrote: »

Sorry - can't share others' jubilation.

I pray I'm wrong but the 1930's were not a happy decade.

I agree. Cheering on the demise of Lehmans and Merrills is a bit like standing on a beach and cheering that the guy next to you has just been overwhelmed by a tsunami.

harbinger13

carolt wrote: »

Sorry - can't share others' jubilation.

.

Sorry - I am not in 'jubiliation' - I am saying I have no 'remorse'; certainly no enjoyment.

Just imagining on the other hand during the hay years of 2002 when an LB trader/broker pocketed £1M because of some trade - did he feel any remorse for the poor investor who bet wrong. Guess 'they' didnt - whilst they may have 'celebrated'.

If we want to live in a Capitalist economy then learn to live like 'them'. No remorse for those who falter on their own.