- Highlights
- Full Text
[0:14] ..." think instructions came from the said the directly to Bear Stearns and JPMorgan and others who were involved. To -- this -- together this weekend they did not want -- turns to file bankruptcy and have these huge disruption that the would have occurred in the financial markets -- yes -- surprised that he was put together rather -- quick and in the reaction on JPMorgan stock -- it is telling -- fire -- got a tremendous -- and some of these assets -- certainly worth more in"...
[0:50] ..." Tell me about the fallout here I know that -- some Boston based mutual funds have. Have investments in Bear Stearns what is the fallout from this company that you know was its stock was trading in the triple digits not too long ago. And now it's"...
[1:15] ..." community it's been -- quite a bit by this downturn in the housing market it's really the -- it's capital battered over the last six months and Bear Stearns has always had a reputation of being the most aggressive they've taken on many different programs and other more conservative investment bankers would not so they've really gotten caught in this. And I picked the fallout is that really significant one and it's that confidence factor for investors think investors and on now starting to question is my"...
[0:00]" We surprised at how quickly this change -- for Bear Stearns how quickly the Fed got involved in what the Fed is doing. Two help -- this company."
[0:09]" I think -- know what happened you don't late Friday or Saturday I think instructions came from the said the directly to Bear Stearns and JPMorgan and others who were involved. To -- this -- together this weekend they did not want -- turns to file bankruptcy and have these huge disruption that the would have occurred in the financial markets -- yes -- surprised that he was put together rather -- quick and in the reaction on JPMorgan stock -- it is telling -- fire -- got a tremendous -- and some of these assets -- certainly worth more in the price that they paid for them."
[0:50]" Tell me about the fallout here I know that -- some Boston based mutual funds have. Have investments in Bear Stearns what is the fallout from this company that you know was its stock was trading in the triple digits not too long ago. And now it's it's that a couple of books share."
[1:07]" Well I think it's really just a reflection of the entire financial services industry particularly the investment banking community it's been -- quite a bit by this downturn in the housing market it's really the -- it's capital battered over the last six months and Bear Stearns has always had a reputation of being the most aggressive they've taken on many different programs and other more conservative investment bankers would not so they've really gotten caught in this. And I picked the fallout is that really significant one and it's that confidence factor for investors think investors and on now starting to question is my money safe we are I carry currently have a custody and that's a significant issue for people to wrestle with."
[1:57]" This is just tip of the iceberg a lot of companies are involved in this and there are those -- there could be other dominoes fall."
[2:05]" Yes I've seen statistics you know we've had probably almost 200 billion dollars worth. -- written off may -- 150 to 200 billion at present pitching him fairly reasonable expectations that there can be half of what. A could be written offer could even go higher than that and that's -- police squared all across the -- in many different banking sectors. So we may only be have to wait through the pain however I think the markets have started to figure out the significance of the problem. And I think the markets have an awful lot of the difficulties priced into the and to date particularly in the financial services area who commit a lot of stocks down 5060% or more. So which on a surprise that there is stress here. I think going for weight we really need to -- confidence built up what we need defused two weeks and weeks go by without anybody. Announcing further write off early and and with people finally starting to say we have solid businesses with good assets and in the mistakes are behind us."
[3:09]" Do you think that these events and the events that are yet to happen will be enough to make this fear recession deeper than."
[3:20]" Well that we were talking about this in my office today infineon I think it's interesting that the what really matters is what's happening on mainstream America. It's -- yours and mine neighbors and their job situation two they have people became full employment if they are seeking it. How what kind of income do they have these spending -- come but they going to the stores -- the going out the restaurants. And I think that's weak today but on March or it's in the basket you know and and totally wipe out like some are predicting and I think we may work ourselves through this and we haven't all. Markets in the past and I think we will again in this one but for an investor today they need to be cautious -- this that time -- To make sure you're taking small risks and that you're watching that that risk you're taking very carefully"
Del.icio.us
Digg
Reddit
