Ishortyou

FASB Softens Mark-to-Market Rules: Better Late than Never

the prices are set by a simple supply and demand relationship, now banks can build their fantasy land or house of cards in their books and look good from the outside.

One Easy CDS Fix

A Lot of those bets on derivatives have been done by financial instiutions with money that they dont have, borrow money, margin money and when things went down there you go down the tubes. The bets on housing related derivatives brought the banks down when the housing bubble popped, it is imperative now to correct the oversupply in housing to prevent further damage on those bets specially the ones in the banks books.

One Easy CDS Fix

that means an oligopoly in CDS markets, it needs to be supervised anyways, many tried to make easy money on it till they got burned.

CDS Demonization Watch, Gretchen Morgenson Edition

I agree this CDS market should be regulated just like a regular insurance, those gambling models on several derivatives or contracts with borrow money had affected the financial system severely and almost brought us down to the stone age, they need and must be regulated to prevent it from happening again.


On Jan 26 04:48 PM Tom Armistead wrote:

> The solution to CDS is to regulate them as insurance, with a requirement
> of insurable interest for buyers and capital adequacy for issuers.
>
>
> According to Eric Dinallo, 80% of CDS is not backed by an insurable
> interest. As such, that 80% is gambling or speculation: and, since
> it has very nearly brought down the system, should be outlawed. The
> outstanding contracts can be terminated by responsible regulators
> in the interest of those harmed by the gambling acitivity which took
> place in our financial markets.
>
> Under this scenario, CDS that were originally bought as insurance
> protection would stand. The other 80% would be unwound in such a
> way as to leave the system intact. The whole thing is purportedly
> a zero sum game, so regulators could just set the winners and losers
> equal and tell them to update their resumes and find honest work.
>

Government Risk Rises: Credit Markets Face Structural Collapse

these derivatives or contracts have a lot of bets on it, a lot of gambling from investors money, so no one really knows how much is at stake, but I certainly will call my money away from these risky bets for sure.


On Jan 26 08:19 AM Ebenezer wrote:

> Don't forget...Robbins, Kaplan, Miller and Ciresi Law firm has uncovered
> WFC traders investing in derivatives market when it was flying with
> funds targeted to low risk investments by customer contract agreement.
> The company then apparently kept the larger spread profits while
> paying near money market rates to its customers. Now that the derivatives
> market has been in trouble, requests for certain customer withdrawal
> of funds has been met with resistance due to loss of the investment
> funds' value on the derivatives trading side. How much more of this
> has been going on without the knowledge of the investors, who were
> under the impression their dollars were being handled with much lower
> risk?

Government Risk Rises: Credit Markets Face Structural Collapse

the problem is who is going to trust government bonds when the government accounting books are already bankrupt and in deficit, I mean who is going to take the risk of not getting paid from bankrupt governments, maybe the Chinese or Japanese are willing to take the tremendous risk in buying those bonds or I owe u's but not just the regular investor, specially when bankrupt governments start printing money to pay their obligations.

Cramer's Stop Trading! Will the Banks Be Nationalized? (1/15/09)

the are already indirectly nationalized with preferred stocks and warrants and other conditons.

Netting Derivatives: Slippery Slope Marred by Opaqueness

those derivatives or contracts have to be transparent and trade openly on a like NYSE platforms, their secrecy ruins the credit market.

CDS Industry: Zero Sum Game or Ponzi Scheme?

Simply put the CDS market needs insurance regulation.

CDS Industry: Zero Sum Game or Ponzi Scheme?

I just made a jump in the CDS market by promising insurance on derivatives for 250k for 1Mil over 1 year, but the thing is I dont have the money or any reserves to show off for, but hey this market is not regulated so no body can tell me anything, and if the time to pay claims come I just simply file for bankruptcy and go to Brazil to dance la lambada. Man I love America!

JPMorgan Chase: Poisoned by Bear's 5,000 Counterparties

JPM with the toxins of Bear Sterans and Washington Mutual, Bank of America with the toxins of Merrill Lynch and Countrywide as well as similar bank situations, new that they were going to get sick, but they judged that it would not be fatal and that it would be rewarding after the sickness cures itself, apparently their expectations are happening and although certainly they are unlikely to die from it, the sickness will last for a long while.

William Ackman of Pershing Square: We Erred in Buying AIG Post-Bailout

almost all the units of AIG are profitable except the one involved in MBS, ABS, CDP, SIV's, to my common sense this is probably the only and the only one unit or subsidiary that needs to be sold of at fire sale price, but hey what do I know?

Bill Ackman Piled Into Wachovia and AIG Shares

Now that the 'bail out' plan came through, Wachovia needs fast to take advantage of it, it needs to sell its toxic loan portafolio from its banking subsidiaries around 122 billion if not more to the government close to even cost prices and take serious advantage of the tax break plan and remediate their banking book of business. They also need to contact their customers that did the run on the bank like chickens without head to bring their deposits back and reassure them that they are ok and there is not reason to panic because of the talking heads of FOX news and rest of media and the incompetence of the FDIC. This strategy will demonstrate to the public that the current 'bail out' plan is working and that Wachovia is the first product of it.

Lehman's Lies

Now that the 'bail out' plan came through, Wachovia needs fast to take advantage of it, it needs to sell its toxic loan portafolio from its banking subsidiaries around 122 billion if not more to the government close to even cost prices and take serious advantage of the tax break plan and remediate their banking book of business. They also need to contact their customers that did the run on the bank like chickens without head to bring their deposits back and reassure them that they are ok and there is not reason to panic because of the talking heads of FOX news and rest of media and the incompetence of the FDIC. This strategy will demonstrate to the public that the current 'bail out' plan is working and that Wachovia is the first product of it.

Wells Fargo Swoops in on Wachovia: Days of 'Something-for-Nothing' Likely Over

Now that the 'bail out' plan came through, Wachovia needs fast to take advantage of it, it needs to sell its toxic loan portafolio from its banking subsidiaries around 122 billion if not more to the government close to even cost prices and take serious advantage of the tax break plan and remediate their banking book of business. They also need to contact their customers that did the run on the bank like chickens without head to bring their deposits back and reassure them that they are ok and there is not reason to panic because of the talking heads of FOX news and rest of media and the incompetence of the FDIC. This strategy will demonstrate to the public that the current 'bail out' plan is working and that Wachovia is the first product of it.