Lampert has got to be smart enough to make the oodles of money he has, but with Citi, the question is how low does the sinkhole go? Is it even fully disclosed yet? Maybe not since the cascade effect can make pricing the bottoms of these CDO's elusive.
So what is/can Lampert do about that...
Yes, keep averaging down with more and more of your capital. Double down on the dips.
It will not go past 100% of your capital outlay so do not be concerned.
Or...will it...?
"the average: 10sec/1min/5min candle, from 9:30-9:35, 9:35 - 9:45, 9:45-10:30, etc."
You concerned with thin volume on those timeframes making gaps?
If you are gapping at 10 sec intervals it must be really thin.
"they'll buy the top tier AAA's"
How are they going to figure out what's AAA unless each CDO is unbundled, the individual loans assessed, then averaged to reach some measurement of it's collective value?
Seems the obfuscation that helped in the beginning would have to be unwound to see...
A Super-size-it SIV is interesting, but aren't those CDO's bundled loans?
Figuring out what's good and bad means evaluating the individual components of each? Unbundling each CDO? How would they average to a value without the individual numbers?
sniffle...
It's a warm, fuzzy feeling to see banks getting along so well colluding this way...
Like - a Norman Rockwell Thanksgiving painting....
sniffle....
"The countryâs three biggest banks have reached agreement on the structure of a backup fund of at least $75 billion to help stabilize credit markets, a person involved in the discussions said yesterday, ending nearly two months of complicated negotiations against a worsening economic...
Seems to me most of the drivel out there is useless because it has no context and no specifics.
What timeframe are they discussing? What percentage allocation of capital are they talking about? Are they recommending hedging with options or looking at non-correlated markets? (until the...
"How serious are the bugs ?
- faulty calculations ?
- slow calcuations ?"
There is a litany of them that I have not taken the time to read through, but the number of postings in the TS forum was enough to give me pause on upgrading. They introduced Forex into 8.3 and it is likely suffering...
"Both parties were equally liars and deserve everything that happens to them."
The problem of course, is that they are not the only ones who will deal with it.
Like the S&L scandal of the Reagan era, we will all deal with it.
So Bernanke will lower rates to save the institutions that...
"99.9% of these people who took stated income loans lied about their income to get into mortgages they couldn't afford."
So it is the lying loan-takers vs the give-them-a-loan-any-way-you-can-and-bundle-it-into-a-CDO guys.
One is probably desperate and looking for a pipe-dream.
The...
"He also has stated on many occasions that the fed expects inflation to 'moderate' and remain 'contained'."
He wasn't lying.
He was only speaking personally and for the Central Bank when he said that...
As for the rest... oh well......