roccman wrote:Nice pic!
For those who think your FIC0 will mean anything...in...oh...a week.
Think again.
Got food?
NoWorries wrote:Alright, that's a big number. But what is the connection to the Bailout?
I agree we're in Trouble no matter what, but I don't quite understand your post.
Eli wrote:New York just changed the rules of the CDS market, now they will come under government purview as they always should have.
Why is this important, these debts are hedges against other losses they all were written before without any oversight. Basically hedge funds could right insurance for others whether or not they had the money to pay off the debt or not.
Link
Any future hedging just shot the moon, this is a 60 Trillion dollar problem now, the bailout can't stop this either way.
It is a problem that is larger than global GDP.
]
"The credit default swap market is the ultimate bubble, and it is about to collapse," the managing director of Institutional Risk Analytics, Christopher Whalen, said. "It is a Ponzi scheme, and is basically the same method as a bookie uses."
Hedge funds have been employing this strategy over the past several months as the financial sector caves in, some analysts and industry observers said. "If they had tried this any time in the last three years, they would have gotten torched; it is only very recently that something like this could work," the chief strategist at Fusion IQ, Barry Ritholtz, said, adding that he had no first-hand knowledge of the strategy.
efarmer wrote:Hank the Tank could just nationalize the agency
rating companies and help them make excellent
ratings decisions.
By VIKAS BAJAJ
Published: July 2, 2008
Already under intense scrutiny for its role in the credit crisis, the Moody’s Corporation said Tuesday that some employees had violated its code of conduct in rating complex European securities.
The company said that it would discipline and possibly fire employees who had been involved in rating the debt, which are known as constant proportion debt obligations. Separately, Moody’s said it was replacing the executive, Noel Kirnon, who was in charge of its structured finance business at its subsidiary, Moody’s Investors Service. It would be the second high-profile executive departure announced by the company in less than two months.
The news comes as policy makers around the world are looking into how Moody’s and its competitors, Standard & Poor’s and Fitch Ratings, gave high ratings to mortgage and related securities that turned out to be far riskier than their ratings would have implied and have cost the financial system hundreds of billons of dollars. The companies are the subject of several investigations in the United States and Europe.
TheDude wrote:"Blackpool"?
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