Thursday, March 15, 2007

Bear Stearns (BSC) and Subprime

This is insightful:

The Reuters story left a few things out.

According to my sources on the Street, Molinaro says Bear is waiting for a further shake out in subprime which could extend its purchase time frame out to Q3.

This is extremely important: Bear acknowledged today that IF the BOJ lifts rates liquidity will be impacted and that it is not able to quantify potential impact.

My take: as noted last night... all roads these days lead to the BOJ and the direction of the Japanese Yen, this cannot be understated.

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