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Ten companies now have more Level 3 assets than capital. Some of these companies WILL go bankrupt.
This Link is located in the Public Channel Housing Bubble and Bear Links.
 Posted by ian 196 days ago (www.minyanville.com).  Views: 384
Tags: housing bubble  banks  bear stearns  morgan stanley  merrill lynch
Related Tags: wall street  credit crisis  economics  countrywide  peter schiff  gold  
Level Three assets are the least liquid of the firms' trading assets and therefore are valued using what are called "unobservable inputs."

Level Three assets include real estate, mortgage-backed securities, private equity investments and possibly even "undertakings of great advantage, but nobody to know what they are" (cf. South Sea Bubble).

The three magic words that make an asset a Level 3 asset are "no observable inputs." What this means is that not only are they hard to price, but nearly impossible to sell.

Ten companies now have more Level 3 assets than capital. In order they are (as a % of total shareholder equity):

1) Bear Stearns (BSC): 313.97%
2) Morgan Stanley (MS): 234.88%
3) Merrill Lynch (MER): 225.4%
4) Goldman Sachs (GS): 191.56%
5) Lehman (LEH): 171.18%
6) Fannie Mae (FNM): 161.48%
7) Northwest Air (NWA): 142.02%
8) Citigroup (C): 125.06%
9) Prudential (PRU): 119.36%
10) Hartford (HIG): 108.52%

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ian said
68 days ago
 
update

127 days later, #1 (Bear) and #6 (Fannie) already went under (government bailouts).

#5 (Lehman) is days away from going under. #3 (Merrill) is probably a few weeks to a few months away from collapsing.
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Housing Bubble and Bear Links (1,225 Links)
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This channel was created on April 10, 2007 to warn investors of the coming collapse in home prices. For quite some time we have warned investors to get out of U.S. stocks. This channel represents the best of the best in finance related links. I read [More...]
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A history of home values
This Link is located in the Public Channel Housing Bubble and Bear Links.
 Posted by ian 1 year 132 days ago (www.thefinancialhelpcenter.com).
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Yale economist Robert J. Shiller created an index of American housing prices going back to 1890. It presents housing values in consistent terms over 116 years, factoring out the effects of inflation. Here's more information on the the biggest bubble [More...]
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Housing decline is 1/3 complete and will not bottom until 2012 or later
This Link is located in the Public Channel Housing Bubble and Bear Links.
 Posted by ian 129 days ago (www.harpers.org).  Views: 1,352
Tags: housing bubble  economics
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Cramer, you're wrong. Housing will not bottom until 2012 or later. So far you have called 3 bottoms in the stock market (one after the Fed cut rates by 125 bp in 8 days, one after the Bear Stearns bailout, and now one after the Housing Bill / SEC naked [More...]
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Roubini: BofA's Lewis Totally Overpaid in Reckless Deal for Merrill (video)
This Link is located in the Public Channel Housing Bubble and Bear Links.
 Posted by ian 65 days ago (finance.yahoo.com).  Views: 91
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The Reckoning: How the Thundering Herd Faltered and Fell
This Link is located in the Public Channel New York Times - Most E-mailed Articles.
 Posted by MyPropsMonkey 9 days ago (www.nytimes.com).  Views: 4
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Merrill Lynch couldn’t escape the housing crash as record waves of homeowners defaulted on their mortgages.
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The Reckoning: How the Thundering Herd Faltered and Fell
This Link is located in the Public Channel New York Times - Most E-mailed Articles.
 Posted by MyPropsMonkey 11 days ago (www.nytimes.com).  Views: 4
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Merrill Lynch couldn’t escape the housing crash as record waves of homeowners defaulted on their mortgages.
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Banking company Morgan Stanley has cancelled all plans for Christmas
This Link is located in the Public Channel reddit business.
 Posted by MyPropsMonkey 11 days ago (reddit.com).  Views: 3
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Video: Exclusive: Morgan Stanley Bullish on European Stocks
This Link is located in the Public Channel Bloomberg Financial Videos.
 Posted by MyPropsMonkey 14 days ago (feeds.feedburner.com).  Views: 7
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Only on Bloomberg - According to Morgan Stanley, European Stocks Have "Full House Buy Signal"; European Stocks Trade at 9.5 Times Trailing Earnings
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Fed Hires Former Bear Stearns Risk Officer To Regulate Banks
This Link is located in the Public Channel Contrarian Stock Market News and Views.
 Posted by lucretius 14 days ago (www.contrarianprofits.com).  Views: 2
Tags: stock market news  contrarian investing  financial ideas  stock ideas
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