Thursday, Nov 29, 2007
Ignore Wall Street's tantrums
The Times: Ignore Wall Street's tantrums
Talking about Flip flopping!!!
Posted by eagle @ 12:58 PM (412 views) Add Comment
3 Comments
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1. Bobsto said...
The author of this piece (Anatole Kaletsky) made the remark "so is that it then"? about a week after the sub prime crises exploded and just before the Northern Rock debacle,
implying it was all a storm in a teacup and laughing at all the panicking fools.
He's a twit, ignore him.
2. Safeazowziz said...
This puts a slighty different slant on the Times spin!
Citibank gets roughly $8 billion in an equity infusion from the Arabs. But it is a convertible preferred offering, although they structured it in a way to not say that (calling it a sale of "unit investment trusts" instead) and was made at a Guido-style interest rate of 11%. While there are allegedly anti-hedging provisions in the deal, anyone who actually believes that the folks over in Dubai don't have an affiliate that they can hedge through has rocks in their head. Some or all of that risk will almost certainly be hedged off immediately, and that coupon is insanely lucrative - for Dubai. Oh, if you just want to look at this as a discounted stock purchase (that is, roll the coupon into the stock price) it marks Citibank's stock in the low to mid $20s. That's nice if you're a current shareholder, no?
http://market-ticker.denninger.net/
3. drewster said...
I love this quote:
"Financiers naturally think that they are the world's most important people, so when their own jobs and bonuses are threatened they assume that the global economy must be under threat. Most of the time this is simply not true."