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原帖由 CAB 於 2008-9-19 22:53 發表
正如格林斯潘所说：privatized gain, socialized loss. 美国共匪把 AIG 成功变为美国人寿, 比中国人寿更国有化！

输钱大家埋单，好 ...

They said it was a liquidity problem, not investment problem...

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原帖由 CAB 於 2008-9-20 19:09 發表
Of course not. Liquidity problem is a result of investment problem.

These people borrow to bet (invest), lose money, & hence no one is willing to lend them money (liquidity problem).

Eve ...

Yes.. Hong Kong Govt officials earns much more than their counterparts in financial sectors but they work in sleeping pace...
AIG has problem in investment but it is not that big a share in their portfolio compare with Lehman brothers.
I agree to freeze Lehman bros account in Hong Kong but this will not happen because Salesman Tsang is too timid to face the big crocodiles and may be he cannot speak too fluent and express himself too...

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原帖由 Rainybreeze 於 2008-9-22 02:21 發表
This derivative has been making so much credit available; basically, for the last decade, not only the American economy, the entire world economy, yes, including China, was built upon it.
Where did  ...

Thanks for the introduction.  My understanding is the failure of money funds ( Reserved primary fund and BNY ) force the US Treasury to step in with optional backing programs to stabilize the fund market, and to enable companies to roll over their short term debt.

We are just ETC machine in those sharks' eyes, Donald Tsang care less to regulate the market than covering his behind.
Our beloved CE only answers to big players and will do nothing to upset them, small investors are expendable under Tsang's governance.

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原帖由 舐共小先鋒 於 2008-9-23 15:28 發表


You know what, I was quite surprised to find out there are a number of PROs here in this forum.
Typically this is a forum for "victoria park uncles".  But I am wrong. And am I glad I am?!

HK i ...

I am just an engineer and not a financial PRO.
However, in the forseeable future, US needs to print a lot of $ ( some said 1 trillion ) to cover this crisis.
Your suggestion is great, to create a CDS market, but in the face of inevitable inflation of US$, should HK$ go un-peg first?

This is the best explaination I read so far why AIG and Bear Stearns are bailed out due to the CDS market.

There is an estimated 516 trillion $ derivatives compare with 100 trillion $ stock market ( and 15 trillion $ US$ money supply ).  The bomb is too big to let it blow..

What is happening in both the stock and credit markets is a direct result of what's playing out in the CDS market. The Fed could not let Bear Stearns enter bankruptcy because – and only because – the trillions of dollars of credit default swaps on its books would be wiped out. All the banks and institutions that had insurance written by Bear would not be able to say that they were insured or hedged anymore and they would have to write-down billions and billions of dollars in losses that they've been carrying at higher values because they could say that they were insured for those losses.
The counter party risk that all Bear's trading partners were exposed to was so far and wide, and so deep, that if Bear was to enter bankruptcy it would take years to sort out the risk and losses. That was an untenable option. The Fed had to bail out Bear Stearns.

Make no mistake about it, there's nothing wrong with AIG's insurance subsidiaries – absolutely nothing. In fact, the Fed just made the best trade in its history by bailing AIG out and getting equity, warrants and charging the insurance giant seven points over the benchmark London Interbank Offered Rate (LIBOR) on that $85 billion loan!
What happened to AIG is simple: AIG got greedy. AIG, as of June 30,had written $441 billion worth of swaps on corporate bonds, and worse,mortgage-backed securities. As the value of these insured-referenced entities fell, AIG had massive write-downs and additionally had to post more collateral. And when its ratings were downgraded on Monday evening, the company had to post even more collateral, which it didn't have.
In short, what happened in one small AIG corporate subsidiary blew apart the largest insurance company in the world.
But there's more – a lot more. These instruments are causing many of the massive write-downs at banks, investment banks and insurance companies. Knowing what all this means for hedge funds, the credit markets and the stock market is the key to understanding where this might end and how.

[ 本帖最後由 Rubber 於 2008-9-25 16:49 編輯 ]

There is a good explanation about the meltdown of CDO due to the sub-prime mortgage of the US housing.

normaSubprimehttp://online.wsj.com/public/resources/documents/info-flash07.html?project=normaSubprime0712&h=530&w=980&hasAd=1&settings=normaSubprime0712

The Credit Crunch turning all investors in CDOs big losers.

Regulation - yes...   I always wonder why people are allowed to short-sell before actual borrow from someone to sell.
This remotely applies to those as in CDO or CDS..
How can you have no " interest / stake " and insure or as an insurer against someone's default ?
Those derivative product should be regulated when there are some real money are in stakes ( you cannot throw in collateral ).  Those collateral was seen to multiply itself.

This Credit Crunch has opened the door of the unthinkable....