Do you own a REIT... yikes!

JAP said: "[IMG]http://www.technicalwatch.com/ad07/breadthreit062207.gif[/IMG]"

Aligator said: "Looks, like it's coming, doesn't it?..........And it is not gonna be fun. Anyone out there really understand (I do not) what is going on with Merrill Lynch and Bear Stearns? Lynch seized 800 mill worth on bonds and threatened to auction them off???...And these bonds were connected to subprime mortgage loans........ If you have a clear understanding of this situation, speak up. My understanding is pretty vague, but the situation is getting serious, evidently."

Pb3190 said: "Wow, more fun for me. Seeing this chart patter makes me consider getting out now, and not waiting for any rebound."

Kloewer said: "[QUOTE=Aligator]Looks, like it's coming, doesn't it?..........And it is not gonna be fun. Anyone out there really understand (I do not) what is going on with Merrill Lynch and Bear Stearns? Lynch seized 800 mill worth on bonds and threatened to auction them off???...And these bonds were connected to subprime mortgage loans........ If you have a clear understanding of this situation, speak up. My understanding is pretty vague, but the situation is getting serious, evidently.[/QUOTE] Here's the gist as I see it: Bear hedge fund makes bets (some bullish, some bearish) on subprime that didn't work out. Merrill essentially made a margin call on the leverage it provided to the hedge fund. Bear secures a third party loan in an attempt to shore up the hedge fund. I'm not sure it's the end of the world, though it's probably not a good thing. I'll be more worried when people can't find money for deals that haven't gone sour yet, which may be on the horizon."