All US Financials Will be Nationalized in a Year?

A

AMT4SWA

All US Financials Will be Nationalized in a Year

CNBC
November 23, 2008

It’s not preferable, but all major U.S. financial companies will eventually be under government control because the alternative is so much worse, Hugh Hendry, chief investment officer at hedge fund Eclectica Asset Management, said Friday.

"All financials will be owned by the U.S. government in a year," Hendry said. "I bet you."

Nationalizations take dramatic losses from the private sector and places them on the larger balance sheet of the public sector, he said.

"It’s not good," but society is vulnerable and society is going to have to intervene, Hendry said.


Shareholders Should Get Nothing

Because the taxpayers are forced to foot the bill for bailout out the banks, shareholders shouldn’t be compensated, Hendry added.

(Watch the accompanying video for Hendry’s full comments… http://www.infowars.com/?p=6152 )

"Actually the shareholders of Citigroup have looked the other way for more than a decade" while management took excessive risk, he said.

Shareholders should take nothing away if it is nationalized, because the taxpayer will be "paying this for a long, long time," he added.

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The guy in the video is funny......"I see DEAD peolple" comment was great.....LOL! The financial grid takeover is being proved out MORE and MORE each day!!!!!!!!!!!!
 
Well I do have to be honest, some banks are doing VERY WELL.......

Rothschild Investment Banking Posts Record Results

Ron Haruni
Seeking Alpha ( http://www.infowars.com/?p=6140 )
November 21, 2008

The inability of the current investment banking model to withstand the ongoing liquidity crisis has forced many investment bankers out of business or those few that have survived to get by on reduced or no bonuses this year. However, as lenders globally continue to write off and provision for a significant volume of soured loans, U.K.’s Rothschild group, one of the world’s leading investment banking organizations, has posted record results. The bank has been able to maintain its very strong performance again this year, despite the credit crunch, economic slowdown and the threat of a U.S. recession, with investment banking and corporate banking businesses both producing record revenues.

The bank, according to Timesonline - reported a 31%, 459 million euro, improvement in profits. In addition, record results from the organization’s advisory and private banking operations enabled the bank to pay record bonuses to its 2,700 people in June.

The bank’s chairman Davide de Rothschild, following unconventional investment banking strategies, has steered his organization clear of proprietary trading, prime broking and other activities that have devastated rivals as a result of an environment where asset prices keep falling while liabilities remain fixed. The bank however, still wrote off 96 million euro because of souring loans. At some point, considering the global financial system is galloping off a cliff - today’s difficulties in investment banking will prompt an overhaul of the system favoring those players that have shown themselves to be the most cautious during this cycle.

Alongside its pro-forma group-wide results, Rothschild also unveiled that it had entered into a co-operation agreement in the field of M&A and Equity Capital Markets advisory in the food and agriculture sectors on a global basis with Netherlands’ Rabobank, a premier global financial institution providing financing and other services to food and agri business clients around the world.

As part of the deal, notes Timesonline, Rabobank is buying a 7.5% stake in one of the key holding companies in the Rothschild empire, Rothschild Continuation Holdings, which owns the N M Rothschild business in the U.K.

Rabobank becomes the second biggest investor outside the Rothschild family after the trading group Jardine Matheson, which owns 20%. This is Rothschild’s second joint venture with a Dutch bank.

Rothschild advisory clients include Rio Tinto (RTP), which is fighting a hostile bid from BHP, Billiton (BHP), and British Energy in its deal with France’s power giant EDF, a deal that gives the French company a dominant role in the British nuclear industry.
 
I like Hendry. He thinks like a real successful HF guy should think

Too many HF are staffed with MBA's that cant think outside the box period.
 
Quote from JamesVU2000:

I like Hendry. He thinks like a real successful HF guy should think

Too many HF are staffed with MBA's that cant think outside the box period.
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I agree....I love his mentalities and a great sense of humor which is very important for emotional stability imo.... :)
 
Quote from JamesVU2000:I like Hendry. He thinks like a real successful HF guy should think
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I think Hendrys hedge fund is really small (< $250m USD). He's small fry, but then again, this gives him the chance to mouth off and present controversial opinions because he doesn't have to protect a good reputation or brown nose his institutional clients

:cool:
 
For anyone interested in some comedy, read Hendry's cocky recollection of the Hungarian situation. Enjoy :cool:

Hungary, the birth place of George Soros, home to the largest lake in Central Europe (Lake Balaton) and one of the top fifteen most popular tourist destinations in the world has long captivated our attention. But not, perhaps, in the manner that you might think.

We have long contended that, unlike elsewhere in the world (and in contrast to the Fund’s other positions), forint interest rates will have to rise. In this we agree with Robert Prechter when he wrote in his October newsletter, “The market usually deceives people who argue for outcomes based on seemingly logical mechanistic causes”.

A year ago the forint interest rate swap market was a dream to behold for the typical buttoned down, logical, low volatility hedge fund located in New York. You know the kind of guy who has his initials printed on his shirt cuffs. With Hungary seemingly intent on joining the euro, one could swap a commitment to pay floating and receive fixed: the typical convergence trade.

What could possibly go wrong? Problems in emerging market currencies arise when global economic growth slows and foreigners demand their money back. Beware the generosity of strangers. Hungary has been the beneficiary of much foreign money with the majority of its mortgage debt coming to be denominated in Swiss Francs or Japanese Yen. Could it be that the Achilles heel of the convergence trade was that the locals were not borrowing locally? Put starkly, if the currency falls, the country could be bankrupt.

Therefore we took the other side of the trade, opting to pay fixed and receive floating. Imagine our jubilation then as the forint weakened in October and the central bank raised rates by 300 basis points in an attempt to shore up the currency, in sharp contrast to the rest of the world where rate cuts were the order of the day. We enjoyed a double whammy and added a further three percentage further three percentage points of performance from our Hungarian swaps.
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Quote from AMT4SWA:

"All financials will be owned by the U.S. government in a year," Hendry said. "I bet you."
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That would mark the end of American hegemoney [sic]. Sorry, no pun intended. :D
 
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