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[humble1]

i think many of us will need some "liquids" before this is over and perhaps afterwards, too, lol. i admit to being a bit frightened even though i am perfectly positioned: no debt, out of real estate (yes, i was too early by a couple of years), and zero long equities while short through futures and funds. i thank the gracious gods each and every day for not being sucked in. yet, i wonder if this huge avalanche will not affect me, too, in some way. there is no way out of here. the absurd calls by the cramer types that a fed rate cut will affect the situation show the lack of understanding of the problem. LTCM was NOTHING compared to this: it was one firm which was contained to a few bank lines of credit and was rescued in a meeting in the office of the nyfed, jpmorgan style in 1907. no public money was offered; no fed guarantee was given. now we have, i hear, 750 trillion (notional, but still huge) in counterparty liabilities. so, why was lehman down, big ? why was goldman down, big ? there is your answer. the foolish cover-up by pisana on the true pith of the bear sterns conference call shows how much *they* are trying to keep the public in and unaware of the cascade. pisana started off by telling us, loudly, that bear sterns had a PROFIT for july. what he did not say was that BS was seeing outflows in other funds as well as other ominous comments. that was a disservice, a flimflam. the run has started: BS is the focus, now, but next week it will widen. does anyone doubt that the insiders are quickly getting *their* money and into safe havens ?

Edited by humble1, 04 August 2007 - 07:48 AM.