Comments on: Brisish Bank HBOS can’t sell shares – no one wants to buy them

By: Jim

Jim — Sun, 20 Jul 2008 23:33:27 +0000

The selective protection of 15 banks/brokers by the SEC will be expanded and reexpanded. Few can raise capital unless protected by the SEC short sale prohibition.

Total estimated bad loans are now expected to exceed $1.6 Trillion worldwide (According to Bridgewater Associates). This assumes housing prices stabilize.
Either lending will be curailed by $12 Trillion or a new $12 Trillion of equity capital is needed by the banks. Credit is contracting worldwide faster and faster.

August unemployment report issued by BLS will likely be very negative as the insane “birth/death” adjustments that have kept the reported number positive this year are adjusted.

$50 billion deficits on the State, County and City level will likely force large layoffs within six months.

Will the FED guaranted $20 billion new bonds required by California??

This recession is very different from the past ones. The US has a serious banking crisis and the the US dollar is weak. This is spilling over to high inflation rates and weak economies throughout the world.

By: Ex15:26

Ex15:26 — Sun, 20 Jul 2008 20:49:02 +0000

Let’s all celebrate! I’m sure that HBOS will rally hard tomorrow along with MS because they’ll get to keep all the shares for themselves!

I’ve got my tinfoil hat on and a call in to the PPT to make sure that we make extra room on the Fed balance sheet for our friends across the pond.

By: zzyzx

zzyzx — Sun, 20 Jul 2008 18:54:48 +0000

I wonder what would happen if the proposed FRE common offering happened in the same fashion? Would the Fed. or the Treas. pick up the remaining shares?