Martin Hutchinson (MH) has a 9 March 2009 post, which among other things, attacks TALF Here's a link: http://www.prudentbear.com/index.php/commentary/bearslair?art_id=10200. I agree with MH. Among other things, MH called the CDS business "wholly unsound". Amen. The Obama administration's program will only "divert $1 trillion into the most unproductive assets on the planet, the lowest quality mortgage, credit card and commerical real estate loans made during the crazed easy-money bubble of 2004-07". Precisely.
Subscribe to:
Post Comments (Atom)
1 comment:
Hutchinson remarks on the central issue of the global meltdown...
"...Had AIG been allowed to fail, the CDS market, the dangers of which I wrote about last week, would have been exposed as the destructive scam it is. Those AIG counterparties who themselves survived would have fired their CDS dealers and redeployed resources into more productive – or at least, less destructive – operations. As it is, the CDS market has been artificially endowed with a new lease of life, and will no doubt cause further even more expensive financial catastrophes down the road."Where were the haircuts for AIG counterparties?... I guess if Golden Sacks is advising the US Treasury the pay out is 100%... the richest CDS settlement in the history of the swaps markets...emblamatic of the failure of addressing this crisis... let's call it the "Wall Street 100% Recovery Credit Crisis"
Post a Comment