Thursday, December 24, 2009, 7:13PM ET - U.S. Markets closed early today.
It's been a fraught year on Wall Street, to put it mildly. Tuesday's news that Morgan CEO John Mack and Merrill CEO John Thain will receive no bonsues for 2008 is just the latest evidence of how dramatically fortunes have shifted (literally and figuratively.)
Accounts of institutional collapse abound, but the personal side of the devastation is less frequently covered.
Veteran strategists Steve Shobin and Jeff Saut are in a prime position to fill in the blanks.
Shobin, a former star strategist at Lehman, Merrill and AmeriCap Advisers, says the developments this year are "staggering" and won't truly sink in for years. Saut, chief investment strategist at Raymond James, recalls the rash of firms that went under in the 1970s — and government bailout efforts of companies like Lockheed Martin in 1971 and Chrysler in 1979-80 — and sees 2008 as a case of history repeating itself.
Still, both say the magnitude of this year's destruction is unprecedented, and suggest that until Wall Street gets out of survival mode it's difficult to put 2008 into perspective — let alone predict what 2009 and beyond will hold.
Note: This interview is part of a series conducted Dec. 4 at Minyanville.com's "Festivus" holiday celebration and charity auction. Follow the links below for more discussions from the event:
Illinois governor got arrested. The level of corruption at all levels is amazing.
Perpetual wars cost big money, sinking the nation and its people deep in debt. Debt is slavery. Get it?
Power corrupts and then the sense they can get away with anything and in view of this past administration some have. Accountability has to be established no matter who you are.. We the unwilling, led by the unknowing and doing the impossible for the unaccountable.....THE WALL STREET BAILOUT!
I appreciate someone who says clearly that they have no idea what is going to happen.. what else can anybody responsibly say in this crazy environment...
It's been "a fraught year"?! Is that supposed to be English?
Hello!!!! is anybody listening?!!?!!?!?!? hello?! yeah, Hello!!! it's me?? the little guy pulling on the pant leg of the automakers...if you build an electric car, i'm still not buying it. even if it was $20k, i'm still not buying it. i have ownn your products only to have them turn into crap and then i would buy another piece of crap. if you get a bailout(loan). you will still run out of money. why?? people are not buying what you are selling... what dont you understand about this? and if people do not buy what you sell, then you fail!!!!! this is what you should do FAIL!! bust up the union and go back to basics. Your head has gotten too large and i hold the pin..or stake...
Yep, no one goes into politics for the salary. It's all about how much you can steal.
Greed and corruption is now exposed especially in the financial institution that creat a very large damage and huge losses in all sector of the economy that nearly collapse all the market globally.......It is just a credit crunch but the effect is so severe.......Thanks God, all government leader and central bankers intervention without Bail-0ut in form of investment, package and stimulus in a gigantic scale with out it,the world just die........../What happened now is just history..........Now we start all over again like a new born baby.................A healthy baby...........Let it keep and make it grow once more.........
The single most prominent factor that distinguishes destitute third-world countries from first-world countries with thriving economies is the degree to which corruption is accepted as a normal part of the political/economic system. Given the horrid record compiled by America's current crop of business and political "leaders", our future generations are destined for a very tough time. Our CEOs, senators, congressmen, and governors have managed to pervert their positions of responsibility into self-serving opportunities for personal privilege and enrichment. Shame on them, and shame on us for accepting it.
"Nest Eggs" for Wall Streeters. Must be nice to have been able to put something aside for this rainy day. For the rest of us I guess it could be said that we got the rotten eggs, along with the bill to clean up the mess. Can't write anymore, need to look for a mop to clean up my own barf pool.
Yes - fraught is an adjective.. here is an example... this board is fraught with idiots who don't even know how to use their own native tongue.. ha ha
It's hard to feel sorry for greedy idiots
DECADES OF HOLDING SCHOOLS, STATES,AND COUNTIES,UNDER THE THUMB OF "CONGRESSIONAL",MANDATES AND GRANTS,IS IT ANY WONDER THAT THE HAND THAT FEEDS US ,HAS MADE ALL OF US DEPENDANT ON THEIR SOCIAL ,POLITICAL AND FINANCIAL MISTAKES.AND SHORT CUMMINGS..SHUFFLING MONEY WHERE THEY SEE IF POLITICALLY BENEFICIAL...
DECADES OF HOLDING SCHOOLS, STATES,AND COUNTIES,UNDER THE THUMB OF "CONGRESSIONAL",MANDATES AND GRANTS,IS IT ANY WONDER THAT THE HAND THAT FEEDS US ,HAS MADE ALL OF US DEPENDANT ON THEIR SOCIAL ,POLITICAL AND FINANCIAL MISTAKES.AND SHORT CUMMINGS..SHUFFLING MONEY WHERE THEY SEE IF POLITICALLY BENEFICIAL...
Greedy swine deserve all they get! Let the Media weep over the "small" bonuses while millions of others lose their jobs, 401K's and homes.
I was really hoping that a few of these brazen CEO, welfare takers, would push for "thier" bonuses on the public dime. It probably would have spawn a whole new video gaming genre...." Grand Theft: The CEO"
If you rearrange the letters in the word "overwhelmed" you can spell "levered whom".. ha ha
If you rearrange the letters in the word "staggered" you can spell "gets raged".. ha ha
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Reedersong - Tuesday December 09, 2008 11:38AM EST
Yeah, but Chrysler's was an $800 million loan. They had Lee Iacocca and they paid the loan back. Lockheed-Martin has always been in bed with the government anyway, so that is moot. Today's issues/solutions are vastly different. These dorks would quickly equate the government running the "CHICKEN RANCH" to them running FANNIE/FREDDIE. There is no way these people are that dumb. Therefore, they have financial diarrhea of the mouth or are extremely idealistic and wrecklessly bullish.