R’s and L’s are extremely costly phonetically.

And Merrill Lynch has em.

Well, while THAT might be absurd – I see in ink –
the 9 billion in toxic subprime CDO’s.
take the 36.5 billion and keep in mind the impact of the 9 it will have on revaluing or reevaluating that 36.5 current stock pricing. I say – why not expect at least approx 33% down on the stock ?

so, another 12 billion loss OR what – stock at 24 billion – on a not so dry wafer called the dollar – and what restaurant serves soggy wafers eh ? (voice of Ukrainian farm woman age in her 90’s poking a stick as she yells it at you).

the loss just piles up

so, hmm- 30 billion pounds in Sterling ? Why, that’s probably nothing compared to what’s pushed out of London a day eh ?

ML could probably live and die on an over leveraged reach out of its boat on this stormy sea – tipping itself.

compared to what again – goes out of London probably for or through ML.

Sheesh, there’s an analogy here to one way a corporation can get consumed and deconstructed or just vaporized like Bear Stearns in a 48 hour window, or did BS really fall between Palm Springs CEO Schwartz saying “Ya know, I’ll tell ya, it’s ALL speculators involved here” and when it fell ?

something along those lines – but was it really that Friday eve when he said that to what ? Saturday ? MORNING ? EVENING ? I do wonder. Certainly by Sunday – Bernanke was off to sort out this 30 billion deal – regardless… I wonder was it Saturday technically- or better- what if it was Friday evening LATER – before midnight !

Then you’d have the CEO saying that on the same day -would be priceless.

oh well – I a new temp agency to offer short term insurance !

the new not so bad federalized American Expresses to any investment firm in trouble –

someone should just port out Bank in a Box and sell it to all investment banks – so they can claim they have one formal teller service – online only ! heh – and are qualified. – oh wait – SILLY ME – you don’t HAVE to be a consumer/commercial bank anymore – you can be a Bear Stearns and get that window served breakfast with a tab you can pay off later.

I still say oil is downstream from dollar – more importantly – I hear someone has taken the time to embed the solar I wanted – and now ? it’s a matter of a flat out $ investment – before I can finally benefit in charging my car while I roam a supermarket examining every product for 3 hours !

Don’t forget to look at the sub-pristine banks that came out golden in all of this subprime mess- Who knows, long term ? I bet Berkshire Hathaway swoops down and becomes a respectable insurance broker at the same time – as I once saw someone put it ‘minting’ it’s own money. heh Gee, that was 2 years ago, I can’t imagine the bargains out there for those with deep enough pockets to really restructure during all of this – picking up excellent buys.

Clarity in understanding what more primal causal factors drive the dollar for example has an excellent return rate ! no money down !

Oh well- would be a LOT of fun to see some of the top craziest loans offered from 2003 to the present.

In a way – call it celebrating their 5th birthday – where payments actually start showing up-

OR

do they ? ouch !

and I think that’s a serious question on the do they part.

I’ll drop the Franks Di Rita war profiteering theory.

But from ML news above – 40+ billion in residential mortgage ?

from article:
$61.7 bn cash and equivalents on its balance sheet,
$36.5 bn in shareholder equity, but it has $34.4 bn in illiquid level 3 trades, both assets and liabilities that it can’t get a pricetag on because no one wants these items.
$9 bn in toxic subprime collateralized debt obligations, those cut and paste jobs few can make any sense of, with another
$4.6 bn in asset-backed securities propped up by corporate bonds and loans.
$44 bn in exposures to residential mortgages as well.

gee, 9 + 4.6 + a mystery bag of 44.

13.6 guaranteed problematic
call it 5 on residential to lowball it.

that’s 18.6 – NEARLY 1/3 total value of TOXIC WASTE !

Now, let’s presume stock holders figure that out – let’s call the 25 billion approx. in shareholders ? and devalue THAAAAAYAT 33% – at the least.

I’d say Merril Lynch isn’t cutting into its muscle.

I’d say Merrill Lynch will be lucky to not have to cut off a limb here.

Thanks for another article – you clearly have a strong grasp on the sector- I very much enjoy when people have forest from the trees insights or in your case, they read like detective stories at times, as the thesis reveals itself.

how is it the TWO top architects for the War on Terror, Media wise – Larry Di Rita – once under Rumsfeld to manage media on war on terror – now sr. spokesperson Bank of America

and General Tommy Franks – once – as Rush Limbaugh quotes it “He RAN the campaign on terror in Afghanistan AND in Iraq”

etc.

Gee – he’s now retired and on the Board of Directors for Bank of America

THE company that stands to win – potentially 1/3 a TRILLION USD bonus award –

for all those people that – I argue-
and conspiracy theorists take this as humor

one would HAVE to believe the world was ending to take on a mortgage like this

AND ?

to offer it ?

who in their right mind could offer this /

and pass on this toxic waste ?

“Oh, what’s that Frank and Linda ? you’re BOTH unemployed, well well – no problem !”

CW officer says

Ugh!

I say force loan originator to obligation, where top node fails, pass the responsibility to the next carrier of this diseased product – starting to reveal itself.

Frank and Jill were avid viewers of Fox News during the pilot run of the series Shock and Awe – in turn – bought into a 485k mortgage they never thought anyone would live through.

Today ?

Frank and Jill – having paid no money yet – no interest, Frank and Jill BOTH being unemployed- Frank daytrading on the extensions on home equity in the home – buying stock in the company that he ‘thinks’ has his deadbeat mortgage, which isn’t the right company.

yet ?

Soon – Frank and Jill KEEP their 1/2 Million dollar home –

pay only $600 – $700 a month
on an extended 50 year mortgage plan ?

ALL the debt for the black SUV Escalade to intimidate the neighbors ?

paid in full

and more

and it gets better !

They’ve lived 5 years – cost free !

utilities + school tax

Where was I on gravy train day at CountryWide

I should have taken out a mortgage I’d HAVE to believe the world was ending to do so !

in 2003