Friday, August 10, 2007

Mark those subprime derivatives to Market...

According to the WSJ (subscription required)... The SEC is checking the books at Wall Street firms, including Goldman, Bear Stearns and Merrill, to make sure they aren't hiding subprime-mortgage losses.

Mark to MARKET SUCKAS!!! hahahahhaha

Oh wait... no buy bids... no market... ooops.

Also, when a financial crisis sweeps into Europe and the US, everyone is running around screaming, "Save them! Save them! Or we risk systemic risks!"

When a financial crisis sweeps into Asia or Mexico, everyone is running around screaming, "Let them die! Let them die! Or we risk moral hazard!"

Yes... I hold a grudge. Ask an Indonesian when he watches a video of World Bank officials talking about how they dealt with the Asian Financial Crisis... The official said, "ah well, there are places we could have done better..."

No Shit.

15 comments:

  1. Seen from your bookshelf that you have "Why Genius Fail", somewhat very similar to LTCM ah

    The US market survive LTCM; just hope this sub-prime thing do not have a rippling effect

    ReplyDelete
  2. 嘩,分析員,見你成個教授咁款在生果報教人,好似教書佬咁(即理論者,欠缺實踐)...!

    對丫,美國投資銀行股唔大瀉,真正強者,如HSBC,又掂有機會坐收漁利...

    wait and see. takeover for US's investment bank is coming.

    ReplyDelete
  3. Yes...

    History as a tendency to repeat.

    The first time as tragedy, the second time as farce.

    Shuen

    ReplyDelete
  4. My sweet 經濟學巨人,

    BNP said "no problem" on Aug 1st. then... waaaaaaah...

    Now. HSBC said "no problem" on July 30th... then... we'll see...

    ReplyDelete
  5. 做得分析員,留意多D資訊啦.

    2005年,匯控在公布中期業績時已提及美國樓市轉弱.

    2007年年頭,又預早講了問題,美國金融市場好大架,一間行,做哂咩?

    回頭看,匯控確係一流銀行佼佼者.

    我勸你早早在報章改立場,叫人買入HSBC,我怕你會學你老友,王冠一,看他近大半年在NOW TV的無奈表現,好核突...

    ReplyDelete
  6. pakman, completely agreed. the back room dealings in the US and Europe when there is a massive market panic is appalling, especially when Asia was allowed to fail in 1997.

    i emphatically disagree that hsbc's discussion of the US mortgage market in 2005 would make it immune to the sub prime / low grade credit mess. if you recall correctly, the quality of hsbc's US mortgage portfolio has been the market's concern since the day it acquired Household International in 2003. Such concern, and hsbc's denial of any problem, did not prevent the (probably) disgraceful departure of its US head earlier this year.

    http://www.finance.thestandard.com.hk/chi/comp_news_view.asp?code=0005&aid=38797

    And just because HSBC is dominant in Hong Kong does not mean it is infallible.

    ReplyDelete
  7. 哪!柏文,這些才叫有水準的分析,看東西,睇得全面整體,唔係學一些所謂分析員,側埋一邊...

    S&P: Doesn't expect widespread Europe bank hit from subprime

    By Steve Goldstein
    Last Update: 5:12 AM ET Aug 10, 2007


    LONDON (MarketWatch) -- Standard & Poor's Ratings Services said it does not expect widespread negative rating implications from Western European banks' direct exposure to U.S. subprime mortgage-related instruments and the subsequent market volatility. "Although we expect that a number of banks will incur revaluation losses as a result of the spread widening, and to a lesser extent credit losses from the impairment of securities holdings, these alone are unlikely to materially change the improved and generally strong fundamental credit quality of the industry as a whole," said Standard & Poor's credit analyst Stefan Best. The European and global economic outlook remains sound, and corporate and emerging market credit quality remains supportive, it said.

    ReplyDelete
  8. My sweet 經濟學巨人,

    Is this the S&P that slapped AAA ratings on subprime MBS and CDOs?

    Or is it another S&P?

    hor hor hor...

    Dear sTsui,

    Mehta right?

    Well, those US$49b second lien subprime... I think it was a citi analyst that came out and said "well, they only had 6% of the loans exhibiting problems in 1H07... even if it went to 12% it would be small impact"

    Well, obviously this guy never hung out in HK during the Tung Chee Wah golden 7 years.

    ReplyDelete
  9. or understood the devastating credit crunch during which LTCM went down.

    or read the warnings buffet gave regarding the ripple effect of derivatives in present day's extremely interconnected financial markets.

    or formed any independent opinions of his/her own.

    gosh, if something is true just because a big dick said it, this would be a very miserable world.

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  10. "big dicks" coming out with "crooked" analysis and "limp" recommendations... deplorable.

    Unlike someone like me who goes long and strong. hor hor hor

    ReplyDelete
  11. i must refer leona to this particular comment before she writes another ill-informed piece about any supposed gentlemen. :>

    ReplyDelete
  12. 一注獨贏 - 又返回起步點.....

    ReplyDelete
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    ReplyDelete