Stock Market

Is it just me or we headed toward a depression? Lehman brothers bankruptcy, fredy + fannie, merrill lynch getting bought by bank of america for 50 billion, and AIG insurance looking for money. The financial market is FALLING....ahhhhhhhhhh


Tell me what you think?
 
I don't think we will hit the levels of the great depression from way back when but things defiantly look gloomy.
 
Stock market and economy is fine....

Its my stock and option pics that seem to suc*!!! If someone wants to play the other side of my trades... I can make you more money than Oprah!
 
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From CNN Breaking News:

The Dow ends nearly 500 points lower -- its worst point drop in more than seven years -- as bank woes scare investors.
 
Stock market and economy is fine....

Its my stock and option pics that seem to suc*!!! If someone wants to play the other side of my trades... I can make you more money than Oprah!

I know that feeling all too well. I jumped out of the markets back in Jan and Feb after a couple rough months. I'll get back to them some day, but with the way they are running right now I'm in no rush to do so. Last year was the first year ever that I claimed a loss in the markets after almost 9 years in them.
 
I hope all those oil speculators will jump out of the window.....:moderator::moderator::moderator:



Uh...Lets not wait for them to jump

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June 13, 2007
Lehman Brothers Profit Climbs 27%
By MICHAEL J. de la MERCED
Lehman Brothers, the investment bank, reported yesterday that its profit in the second quarter rose 27 percent, a record for the firm and potentially auguring a good week for Wall Street earning reports.

Lehman reported net income of $1.3 billion, or $2.21 a share, for the three months that ended May 31, topping the $1 billion it earned in the period a year ago. Net revenue was $5.5 billion.

“Our record results for the second quarter and the first half reflect our ongoing commitment to achieving diversified growth,” the chief executive, Richard S. Fuld Jr., said in a statement.

Buoyed by a prolonged run of deal making and the profit from trading in their own accounts, Wall Street firms like Lehman have enjoyed a string of strong quarters.

Nearly all of Lehman’s various businesses reported growth with equities trading showing the biggest jump, rising 94 percent, to $1.7 billion.

Bolstered by continued growth in mergers and acquisitions, especially in the red-hot private equity sector, Lehman reported investment banking revenue of $1.2 billion, a 55 percent jump.

Revenue from investment management grew to $768 million, up 30 percent from last year.

The only dark spot was fixed-income trading, which declined to $1.9 billion, down 14 percent from the period a year ago. Much of that unit’s weakness came from the subprime market, where Lehman has traditionally benefited by packaging and selling mortgage-backed securities.

In a conference call, the chief financial officer, Christopher O’Meara, acknowledged that the subprime mortgage implosion had been a drag on performance. But he said the firm did not anticipate those troubles seeping into the wider credit markets.

“We continue to believe the subprime mortgage challenges are and will continue to be contained to this asset class,” he said, adding that the worst of the difficulties in the market may have passed.

The firm has bolstered its operations outside of the United States: about 48 percent of its net revenue for the quarter came from nondomestic sources, up 37 percent from the same time last year.
 
this is qtr 4 of 2007

However, Callan said she feels optimistic about Lehman's competitive position compared to others on Wall Street - and that showed in the company's quarterly numbers. For the three months ended Nov. 30, profit after paying preferred dividends was $870 million, or $1.54 per share, compared to US$987 million, or $1.72 per share, a year earlier. Revenue fell three per cent to $4.39 billion from $4.53 billion a year earlier.

Analysts polled by Thomson Financial projected a profit of $1.42 per share on revenue of $4.26 billion, according to analysts polled by Thomson Financial.

"Lehman, while not likely the best among the brokers ... should rank among the better performers this quarter," Deutsche Bank analyst Mike Mayo said in a note to clients.

While Morgan Stanley and Bear Stearns are expected to record charges, Goldman Sachs Group Inc. - which also reports next week - is expected to fare the best out of the investment banks.

Writedowns from mortgage-backed securities and real-estate holdings reduced revenue by a net of $830 million. While the actual writedown was $3.5 billion, Lehman managed to offset most of it.

Chris O'Meara, Lehman's head of risk management, said on a conference call with analysts that "subprime was a component" of the writedowns, but that problems had spread into other asset areas - including prime mortgages and student loans. He said the investment bank has about $5.3 billion worth of subprime exposure on its books.

"Though we have not emerged unscathed, we've done a good job managing our risk that's allowed us to post solid returns," said O'Meara, who this week became the firm's head of risk after serving as chief financial officer. He does not expect Lehman will repeat the writedowns despite continued weakness in the U.S. economy, but is not ready to call a bottom.

Fixed-income trading revenue declined 60 per cent to $860 million in the quarter, but equity trading revenue more than doubled to $1.9 billion. Investment banking revenue fell three per cent to $831 million, though fees from asset management rose 30 per cent to $832 million.

"For many investors, it is not necessarily about beating expectations, but the lack of skeletons in the closet in fixed income that investors are hoping to see," said David Easthope, senior analyst with Boston-based financial consulting firm Celent. "Lehman seems to have fewer skeletons than other banks."
 
YET CEO did get a nice 35 mil bonus last year

Writedowns from mortgage-backed securities and real-estate holdings reduced revenue by a net of $830 million. While the actual writedown was $3.5 billion, Lehman managed to offset most of it.





NEW YORK (AP) - "Deeply disappointing" fourth-quarter writedowns have Morgan
Stanley Chief Executive John Mack bypassing his year-end bonus -- and he is
unlikely to be the only Wall Street CEO giving up tens of millions of dollars in
holiday money.
Morgan Stanley said it was forced to take $9.4 billion in writedowns during
its fourth fiscal quarter, which ended Nov. 30, because of bad bets on
securities backed by mortgages.
"Ultimately, accountability for our results rests with me, and I believe in
pay for performance, so I've told our compensation committee that I will not
accept a bonus for 2007," Mack said in a statement.
Mack received a stock and option bonus in 2006 that, at the time of the
award, was worth $40 million.
Top executives at Bear Stearns Cos., including Chief Executive James Cayne,
may forego year-end bonuses as well, according to a report in the Wall Street
Journal Wednesday. Bear Stearns will report its results for the quarter Thursday
morning.
Like Morgan Stanley, Bear Stearns is expected to report losses and billions
of dollars in writedowns for its fiscal fourth quarter.
It is not all bad news for all Wall Street executives, though. Lehman
Brothers Chief Executive Richard Fuld will receive a $35 million stock award as
an end-of-the-year bonus.
Lehman Brothers said last week its fourth-quarter profit was $870 million,
as it was able to negate most of its $3.5 billion in writedowns through hedging.
Goldman Sachs Group Inc. has yet to announce how much its chief executive,
Lloyd Blankfein, will receive, but some reports estimate he will take home as
much as $70 million.
Goldman Sachs was largely able to avoid the mortgage market mess that has
plagued its competitors in recent months.
Though he will not officially receive an year-end bonus, Merrill Lynch &
Co.'s new CEO, John Thain, took home a $15 million cash bonus just for taking
the job. Thain took over as CEO Dec. 1.
Thain replaced Stanley O'Neal, who was forced to retire after the investment
bank took nearly $8 billion in writedowns in the third quarter.
----
AP Business Writer Joe Bel Bruno contributed to this report from New York.


you had to have seen this comming if you had been dollowing your money..:poke::cheerleader::cheerleader::cheerleader::cheerleader:
 
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