Monday, October 13, 2008

Interesting thoughts from 會計仔

會計仔 wrote about the current economic turmoil. Definitely worth a read.

He noted many things in his 筆記... This part is my favourite...

都唔知邊個 PK 發明看金融股只看ROE不看ROA,ROE只是ROA乘一個扛杆


Want to know the PK who invented that? Bankers.

But in a world where no one defaults... who cares about meagre Return on Assets.

If I had $10 capital, and I can borrow $390 to do $400 of business (40x leverage - less than Fannie, Freddie and Deutsche Bank).

My cost of interest is 5%, my return on assets is 6%. Assuming no one defaults or if mortgages, full recovery because of ever rising house prices... My return is 1% of $400... or $4...

$4 profit on $10 capital. Every year.

But even if only 1 year... After the first year, who ever came up with that plan in the bank will already have received a nice big bonus. And bought an apartment in 西九...

Also, everyone reading this blog who is at or was in business school. You can throw whatever you have learnt about securitization out of the window and pretended those classes never happened.

And if possible, it is time schools taught about defaults when teaching banking at all levels... Even Form 4 + 5 level. All I learnt was the credit creation process... And never about bank runs, defaults and wealth destruction.

How will capital be allocated going forward? Well... I have been seeing a lot of HSBC commercial banking ads lately on CNBC.

1 comment:

  1. 情趣用品,情趣用品,情趣用品,情趣用品,情趣,情趣,情趣,情趣,按摩棒,震動按摩棒,微調按摩棒,情趣按摩棒,逼真按摩棒,G點,跳蛋,跳蛋,跳蛋,性感內衣,飛機杯,充氣娃娃,情趣娃娃,角色扮演,性感睡衣,SM,潤滑液,威而柔,香水,精油,芳香精油,自慰套,自慰,性感吊帶襪,吊帶襪,情趣用品加盟AIO交友愛情館,情人歡愉用品,美女視訊,情色交友,視訊交友,辣妹視訊,美女交友,嘟嘟成人網,成人網站,A片,A片下載,免費A片,免費A片下載愛情公寓,情色,舊情人,情色貼圖,情色文學,情色交友,色情聊天室,色情小說,一葉情貼圖片區,情色小說,色情,色情遊戲,情色視訊,情色電影,aio交友愛情館,色情a片,一夜情,辣妹視訊,視訊聊天室,免費視訊聊天,免費視訊,視訊,視訊美女,美女視訊,視訊交友,視訊聊天,免費視訊聊天室,情人視訊網,影音視訊聊天室,視訊交友90739,成人影片,成人交友,美女交友,微風成人,嘟嘟成人網,成人貼圖,成人電影,A片,豆豆聊天室,聊天室,UT聊天室,尋夢園聊天室,男同志聊天室,UT男同志聊天室,聊天室尋夢園,080聊天室,080苗栗人聊天室,6K聊天室,女同志聊天室,小高聊天室,上班族聊天室,080中部人聊天室,同志聊天室,聊天室交友,中部人聊天室,成人聊天室,一夜情聊天室,情色聊天室,寄情築園小遊戲情境坊歡愉用品,情境坊歡愉用品,情趣用品,成人網站,情人節禮物,情人節,AIO交友愛情館,情色,情色貼圖,情色文學,情色交友,色情聊天室,色情小說,七夕情人節,色情,情色電影,色情網站,辣妹視訊,視訊聊天室,情色視訊,免費視訊聊天,美女視訊,視訊美女,美女交友,美女,情色交友,成人交友,自拍,本土自拍,情人視訊網,視訊交友90739,生日禮物,情色論壇,正妹牆,免費A片下載,AV女優,成人影片,色情A片,成人論壇,情趣,免費成人影片,成人電影,成人影城,愛情公寓,成人影片,保險套,舊情人,微風成人,成人,成人遊戲,成人光碟,色情遊戲,跳蛋,按摩棒,一夜情,男同志聊天室,肛交,口交,性交,援交,免費視訊交友,視訊交友,一葉情貼圖片區,性愛,視訊,視訊聊天,A片,A片下載,免費A片,嘟嘟成人網,寄情築園小遊戲,女同志聊天室,免費視訊聊天室,一夜情聊天室,聊天室

    ReplyDelete