Big Names, Big Losses, the bad Western Boys and Girls.
USA praises' itself as being the "King of business".
I was not kidding when I felt months ago already that the big guys in the big towns with their big cars, are the horror and deserve to be taken to the grave -and then shot. Today we see it all in full flare why. Where were the regulators, on something many of saw coming long ago? In year 2003, I here already wrote that a US housing boom and bust was apperent in the making.
Just now, they are destabilizing the entire global financial system.... A new global regulatory body should be established to monitor those elevated gnomes with egg on their face. And not to mention the Swiss bank global individual clients' as besides their own Bank balance sheets at high risk, clients are taking in huge/gigantic losses. This after having bought & sold to clients billions of sinking US$ around these triple "AAA" Home mortgage bonds. Its the biggest financial scandal, bigger then any to-date and I can only hope members are not stuck with that junk. Instead own the real thing, i.e. still fast growing, high dividend yield Thai companies -operating in the real world.
First it was the US stock market irrational boom & then crash of the late 90', then the silly US boom and crash of the Dot.com follie, followed shortly thereafter by the horrific US mega-corporate scandals with the back-dating of stock options still an unresolved and contentious issue. And now blown in full , we must bear at high risk, the biggest US housing boom and bust cycle of the last 4 busts, all coming from the US.
All this was preventable by the regulators. Shame on "business USA"! Wealthy individual and corporate clients around the world are loosing billions with these "AAA" rated bonds' bursting.
Deja vu all over again.
Some will remember, Switzerland had its own such housing crisis in the late 1980's, induced by the same eager irresponsible bankers' shuffling money out the door with fat commissions to the lenders; where you got a new gas grill, if you took on the new loan etc...,only for Swiss housing prices to bust-up, a few short years later. A home cooked up self made, boom and bust. Its all deja vu all over again.
Boy, humanity at the high circles never seems to surprise me, today no wonder I left it years ago. That should be the subject of the US Turkey Thanksgiving Holidday, where some big boys and galls should all be asked to stand-up quiet,in the corner at the end of the dinning hall during that quiet meal and then, get spanked. Just like in boarding school.
I stand tall not being part of that, but stamping my feet,
Best Regards
Paul Renaud.
Big Names, Big Losses The toll keeps rising. "A billion here and billion there, pretty soon you talking real money".
Here are the losses that top banks and brokers have booked (or announced) on CDOs, asset-backed securities, and other structured products.
Write-downs on structured products Citigroup $9.8 billion This is the low estimate; Citi says the figure could be $3 billion higher.
Merrill Lynch $7.9 billion Analysts project that the broker will have to write down billions more this quarter.
UBS $4.4 billion UBS still has nearly $40 billion in CDOs and mortgage-backed securities on its books.
Morgan Stanley $3.7 billion Morgan's total subprime exposure after write-downs stands at $6 billion. Wachovia $2.1 billion
Wachovia was among the top issuers of subprime mortgage CDO debt this year. Credit Suisse $948 million
Credit Suisse lost nearly another $1 billion on leverage loans.
Lehman Brothers $700 million Total includes leveraged loans; Lehman does not provide more detail. Bank of America $3.527 billion CEO Ken Lewis is cutting back the company's investment-banking operations.
Bear Stearns* $1.65 billion Big hedge fund losses in June kicked off the subprime follies.
J.P. Morgan Chase $339 million CEO Jamie Dimon is credited with losing less than his peers.
Structure products include collateralized debt obligations, collateralized loan obligations, asset-backed securities, and mortgage-backed securities. They do no include leveraged loans. *Estimate. Source: Company earnings releases
