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Captain Coma

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Everything posted by Captain Coma

  1. It's a close thing. Wall Street lobbied to overturn implementation of FASB 157 but were rebuffed Oct 17. Nevertheless, it seems it is still touch and go. Watch this space for any "Shock Announcements" in the US tonight about how FASB157 simply cannot be implemented right now. So far this is the best they've managed: FASB grants partial delay on fair value By Andrew Osterland November 14, 2007 The Financial Accounting Standards Board voted to defer the implementation date of FAS 157, its rule for how to mark to market assets and liabilities, for all non-financial items except for those already reported at fair value on a recurring basis. The accounting standard, which FASB voted not to entirely defer last month, goes into effect for all companies starting tomorrow. It articulates a new framework for determining fair-value measurements of assets and liabilities, though it does not require that such measurements be made in any new areas. Many financial companies adopted the standard earlier this year and have struggled to implement it because of the tumultuous credit markets. The standard requires companies to maximize the use of observable market prices and inputs, and minimize the use of unobservable inputs in their valuations. The standard also presents challenges for non-financial assets and liabilities—most notably in the context of business combinations when companies have to fair value the assets and liabilities they acquire. “The most prevalent areas that would be affected by a partial deferral would be in regard to business combinations and impairments of acquired assets,” said FASB practice fellow Brian Stevens last week. Some observers questioned the decision. “It’s a little puzzling that [FASB] did so at all in that companies will still have to apply 157 to problem financial assets, which is a good thing, whereas the non-financial assets get the deferral,” said Jack Ciesielski, an analyst and principal in the firm of R.G. Associates. Given that FASB intends to change the rules on accounting for business combinations, the board appears to have decided that the new valuation rules should wait until those changes are implemented. (http://www.financialweek.com/apps/pbcs.dll/article?AID=/20071114/REG/71114011) Edit: spelling
  2. Inspired (and concise!). You know things are really coming to a head when mythology rears its head in order to make sense of things.
  3. Hear, hear! I was waiting for somebody to say that. That socialist a**hat Hutton and his "The latest financial downturn is the final nail in the coffin of the conservative free-market world-view". My ar*se! I am a fiscal conservative and hate the reckless shilling that the financial "Lords Of the Universe" have been undertaking to the catastrophic detriment of the capitalist, free-market system. They are a bunch of crooks and shysters and the regulators are equally culpable. The best definition I have read of a fiscal conservative, and one I agreed with completely, came from Elaine Supkis, who said " There are very, very few fiscal conservatives around. We like reduced debts, sober analysis of economic facts and building for the future coupled with real capitalism, not predatory, debt-fueled speculation." Those thieves and con-artists who steal from society without adding anything productive, and then run to daddy-government when things go wrong are the real socialists, precisely because they have no respect for money or human life. They are gangsters and financial Stalinists. If we had some true conservatives around we wouldn't have been in this mess. Hutton, you f*cking pr*ck.
  4. I don't think it's that - the banks won't be able to afford not to repossess, the state their balance sheets are in at the moment. I would expect to see a slight drop in repos at this precise stage of the crash; it is a sign that things are about to fall off a cliff. The reason? All the desperate and doomed are now maxing out their credit cards to keep up with mortgage payments, a situation that cannot continue very much longer. And after that, the deluge.
  5. Question: How many people work at the BBC? Answer: About half. (Old joke.)
  6. But remember, if the credit crunch hadn't happened we would have had higher interest rates by now ...
  7. 1) You don't want to look (or smell). 2) Gordon Brown and friends 3) Ping! Ohh look, it's finished baking. Everybody to the table.
  8. Spot on. I've said it before, and I'll say it again: Gordon Brown is the Prince of F*****g Darkness. Wasn't it Brown who forbade pension funds from investing sufficiently in equities because it was "too risky", insisting instead they pile money into bonds (no doubt to fund his spending plans)? Faced with inadequate returns to pay what they had promised to their future pensioners, the funds were relieved when the city miraculously produced a new form of bond, conveniently rated AAA+ but delivering equity-sized interest rates. Gordon smiled on this miracle of his economic handiwork and blessed them. dstars is right: all the pension funds have to be full of this stuff. How could even one of them have dared to sit back from the trough. And as he has said before, pension fund managers are as dumb as a box of hair - you can sell them anything.
  9. The other day, after reading Peston's excellent piece revealing that NR didn't have enough cash to cover all its depositors' balances, I posted a comment on HPC that said something like "Wow, a good bloke at the BBC - wonders never cease". Then I saw him on the news spouting his poisonous slanted nonsense about MK. I take it all back. What a tosser. Edit: spelling
  10. The US Dollar is the new Northern Rock (looks like for the same reasons)!
  11. Err... guys, we're not talking about Sweden (where I've lived, and incidentally it ain't great), we're talking about the Socialist Workers' idea of paradise, which is (near) post-Stalinist Russia. Maybe hilarious wasn't the right word. "Horrifying" might be better.
  12. Is that a quote from Ron Paul? It sounds so ... nineteenth century. I haven't heard anybody speak in that manner (outside of yellowed, dusty books from olden days of yore) for ages. And yet how refreshing, how spiritually invigorating to hear someone even dare to talk in such terms as if they could be taken seriously now. The very idea that economic actions and personal consequences might be linked by an indesructible moral thread ... Fabulous. So who is this nut?
  13. Funny, isn't it. There's nothing essentially wrong in what they say: capitalism is indeed cyclical; and recklessly encouraging booms is certainly stupid and deleterious to stable capital formation. Greed is always ugly. Etc. What's absolutely hilarious is their alternative.
  14. Okay, correct me if I'm wrong (I'm sure you will), but re: the mystery of A&L ... Q What connects NR and A&L? A Lehman Bros (they both originate subprime loans for- e.i. supply CDOs for - the brokerage). Now, Lehman Bros are the first of the big brokerage forms having to report 3rd quarter results on Wall Street this week. Tomorrow morning, in fact. Perhaps someone has seen Lehman's figures and decided that A&L are toast. That might mean Lehman Bros are toast. And as the man said, "If one big brokerage goes there is a very significant risk that they all will." (http://www.tickerforum.org/cgi-ticker/akcs-www?post=4669&page=15)
  15. On 5 Live ten mins ago "Vicky" was talking to Martin Lewis of MSE.com, and he was peddling the establishment line of "don't panic, everything up to £35K is protected". BUT I read on a thread here yesterday that the compensation scheme is not Gov run or protected but only a banker's fund, and capitalised to the tune of roughly £200m, no more. There are plans to double the fund soon, but not yet, and there are few banks at the mo' who could afford to dummy up the extra cash. Point is, the £35k line is absolute rubbish - the deposits are in no way guaranteed - you'd be just another creditor getting a percentage (if you are lucky) once the £200m was eaten through. And that would happen very sharpish. I think someone should call in (I can't, I have to get three boys to the RAF museum right now). Ahoy-hoy
  16. Believe Barclays waiting in line after A&L then B&B. Reaper working his way up from small to large. He ain't in no hurry; they can't go nowhere, no sir.
  17. Somebody on the "Don't Blame the Foreigners" thread who works on large-scale web systems says that the page is not timing out but is on automatic - turned off, in other words. Another poster says that this constitutes fraud.
  18. I heard that the Yanks aren't so dumb and managed to flog off a vast part of the dodgy CDOs to Europe and Asia before the storm began. We're now holding more than they are.
  19. From another thread, there is a link to the BBC's Robert Peston (good bloke at BBC - wonders never cease) where, on his blog, he does some calculations and reckons that NR are in fact several billions short of being able to honour all their depositors. Gulp.
  20. Agreed. HSBC traditionally have a large capital base. They started out in the Far East with no safety net except themselves, and that attitude is now in their DNA. Christopher Fildes had a really good piece on HSBC in yesterday's Evening Standard.
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