MASTER LIMITED PARTNERSHIPS

Sunday, September 14, 2008

Looks like the Lehman bankruptcy is all but a done deal tonight according to CNBC. Stock futures are in disaster mode right now but i want to take a step back for a minute and take a deep breath. Of course we will see an indirect impact to mlps which will be sold naturally with anything else. But once the initial sellers are out of the way...then what? And since the Lehman stakes in their MLPS actually are something of value who will get them and at what price.

So many questions...so much uncertainty.

7 comments:

Anonymous said...: Looks like Bank of America is going to buy Merrill Lynch according to WSJ.; 9/14/2008 9:31 PM
Anonymous said...: the singer says....if the fed lowers rates ,will this help the mlps?; 9/14/2008 9:51 PM
Anonymous said...: rates are probably too low as it is.; 9/15/2008 3:53 AM
Anonymous said...: BOA took Merrill off the death watch, but no doubt BOA now has a huge target painted on their back.

BOA/Merrill deal is a stock only not cash buyout so the $29.00 may be fleeting.

Meanwhile AIG, is the next disaster, now selling in single digits in European Markets. A report suggests that AIG may have to take Lehman related losses perhaps as large as 15 Billion.

As to rates, now stability is more important than rates, the Fed blew that when they screwed the GSE preferred shareholders, and compounded that by now bringing cash to the table to facilitate a Lehman takover or takeunder.

Now DEFLATION not inflation is the 800 lb monkey on our backs.; 9/15/2008 6:20 AM
Anonymous said...: As to rates, now stability is more important than rates, the Fed blew that when they screwed the GSE preferred shareholders, and compounded that by not bringing cash to the table to facilitate a Lehman takover or takeunder.

Now corrected to not; 9/15/2008 6:22 AM
Anonymous said...: I still believe the long term threat to the economy is systemic deflation. Does anyone want to commnent on how MLPs will function in a long-term system deflation?

Steve; 9/15/2008 7:23 AM
Anonymous said...: Deflation

a lot of moving parts:

1) Debt and ability to service debt

2) profitability of operations

3) value of hard assets ( might be partially based not on replacement value, but on profitability of operation ).

4) multiples on earnings

5) Throe in Global Warming, demand destruction, and Obama Victory ( market crash trumps Palin effect IMHO).; 9/15/2008 7:36 AM