Posted on 12/10/2007 5:25:58 PM PST by bruinbirdman
Wall St at highest level in a month
Citigroup offloads assets from SIVs
Citigroup has slashed the size of its struggling off-balance-sheet investment funds by more than $15bn in two months through quiet side deals with some junior investors, according to people familiar with the business
UBS takes new $10bn subprime hit
Bank turns to Singapore fund
WaMu wields axe in wake of credit crisis
$1.6bn writedown for home lending unit
MBIA gets $1bn injection from Warburg
(Excerpt) Read more at ft.com ...
Wall St at highest level in a month Citigroup offloads assets from SIVs
Citigroup has slashed the size of its struggling off-balance-sheet investment funds by more than $15bn in two months through quiet side deals with some junior investors, according to people familiar with the business
UBS takes new $10bn subprime hit
Bank turns to Singapore fund
WaMu wields axe in wake of credit crisis
$1.6bn writedown for home lending unit
Enron had a lot of OFF BALANCE SHEET investments. It is a term that I don’t understand. I guess I am not as smart as Skillings..but then again he is in jail.
Glad I didn’t sell out. May have to switch to environmental stocks if Democrats win.
They we’re selling underneath the market pretty good today, but we’ve had a pretty good run.
At some point the market is going to start looking thru the subprime mess. Unless there are huge surprises I see the market reaching new highs.
Long story short, accounting rules require you to report certain things a certain way. But, if you structure it right, you can get around those rules. The general way is to do it under another entity’s name while still retaining control of the investment. Basically the old shell game.
Correct. And in most cases that control was to guarantee to buy the stuff back if it didn't make a buck or if it couldn't be sold.
Once the chain letter ran out of buyers, the original issuers of the paper were obligated to repossess it and eventually put it back on the books, usually at a huge decrease in value, if any.
yitbos
I listened to a money manager a few years back go over the boring but deadly accurate money supply charts and the delayed effected of tightening or easing, but was especially intrigued by the relationship Presidential term numbers and election years had with the financial markets. Depending on whether it’s a 00 decade or 02, the first or second term of a two term President falling on certain years, and the fact all Presidents want their recession to happen in the first year of their first term (Hillary’s not going to get it that fast so sad for her) can make investing decisions pretty straight forward. Bush’s two term Presidency in a decade beginning in 00 foretold good things cresting late this year and next, with the proverbial luck running out sometime in 09.
Get out for the recessions, where companies reduce their footprint and value. don’t ride out recessions. This one will start like all the other on the first Fed tightening. And people, just like all others will ignore it and keep partying until about the 3rd tightening and then kaboom.
We’ll have a correction here or there but China’s still got some gas in that bubble and we are going to kiss the sky sometime next year. If we could solve lithium, and put 50 nuke plants on line, and get people charging and recharging the grid, and get hybrids effective and selling, the markets could avoid a recession even after 09. I mean LCD TV’s have taken this expansion this far. Imagine what a transportation change could do. No not the one we want but if the Google guys get everyone commuting at 99 mpg and putting electricity back on the grid at the end of the day, who knows. It pays to be positive some times.
I thought we were supposed to be having a recession.
Great news unless you were a wamu employee today.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.