August 09, 2007

How do you like your hedge fund blowups - scrambled or over-easy?

Ah, ya gotta love "our fund isn't blowing up" announcements even though the fund is blowing up. They've gotta do it though - only way to get rid of the assets before they hit firesale pricing.


Deny, Deny, Deny. Then run like the dickens.

LONDON, Aug 9 (Reuters) - Goldman Sachs said on Thursday that it was "business as usual" at its Global Alpha hedge fund but declined further comment on the fund's operations.

The fund has been the subject of persistent speculation for the past couple of days, with Goldman on Tuesday denying market talk that it was liquidating the fund.

On Thursday, French bank BNP Paribas (BNPP.PA: Quote, Profile, Research) froze 1.6 billion euros ($2.21 billion) worth of funds, citing problems over U.S. subprime mortgages.

44 comments:

Anonymous said...

uh oh

President Bush, seeking to reassure Americans about the economy and combat Democratic criticism of his policies, said on Wednesday that recent financial market turbulence was not a cause for worry but a natural adjustment from the improvident lending of recent years.

http://www.nytimes.com/2007/08/09/business/09econ.html?hp

Anonymous said...

Mr. Bush’s suggestion that the recent housing declines should be seen as a normal market correction from past excesses and that the government should avoid interfering with the process carries political risks at a time when some people are losing their homes, lending institutions are shaky and Democrats are demanding action.

Indeed, immediately after the president’s comments, Democrats excoriated him for saying that the economy was in sound shape, and many called on the administration to encourage federal housing agencies to step in and make more money available, perhaps by buying up troubled mortgages to avoid foreclosures.

Anonymous said...

It's gonna be a white knuckle ride for the troll today!

Anonymous said...

dem eggs ez ober hard an smashed!

shtove said...

Keeps happening, doesn't it? Reassurance followed by crash. Bear Stearns were at it for ages, AHM spent a month telling folks everything was OK, now Luminent and GS.

Anonymous said...

Typical democrats. Let's bailout the idiots.

Anonymous said...

Dark Clouds Hover Over Wall Street

AP - U.S. stocks headed for a sharply lower open Thursday after a French bank said it was freezing three of its asset-backed securities funds that have had struggled to find liquidity in the U.S. subprime mortgage market.

Constanino said...

wait... this can't be happening...no..no..no..

**Think Positive thoughts**

Anonymous said...

give me a break. What'sa couple a billion today anyway. A few small hedge funds won't do anything to the world market

soft landing said...

Market starts to sh*t itself again. Was that a troll or a cockroach that just scurried under the rug?

Anonymous said...

The Black Swan just crapped a load into the punch bowl.

Bloomberg:

The overnight lending rates banks charge each other jumped to the highest in six years. The so-called London interbank offered rate in dollars rose to 5.86 percent today from 5.35 percent

51 basis points in ONE DAY---without any change in Fed policy?

Holy Fat Tail---and I'm not talking about the masses of revoltingly obese McMansion owners.

Usual fluctuation is a couple of points, and the LIBOR money market is stupendously deep, you can borrow a billion or ten with a few mouse clicks.

Anonymous said...

"GET TO THE CHOPPER!!!"

CDO Riechstag fire said...

European investors over the past couple years has been addicted to CDO's. Its all they wanted and their funds are loaded to the gills with them.

Europe is in big, big trouble. The CDO's they have been buying are worthless now.

Anonymous said...

Thursday August 9, 8:46 am ET


NEW YORK (Reuters) - Residential mortgage delinquencies and defaults are becoming more common among borrowers in the category just above subprime, American International Group (NYSE:AIG - News) said on Thursday.
In a presentation on its subprime exposure, AIG, the world's largest insurer and one of the biggest mortgage lenders, said total delinquencies in its $25.9 billion real estate portfolio were 2.5 percent.

It said 10.8 percent of its subprime mortgages were 60 days overdue, compared with 4.6 percent in the category with credit scores just above subprime, indicating that the threat to the mortgage market may be spreading.

(Reporting by Ed Leefeldt)

http://biz.yahoo.com/rb/070809/aig_subprime.html?.v=3

Anonymous said...

Get those brokers back in here! Turn those machines back on!

Anonymous said...

CFC and IMB are next week, lol

Batman said...

Oh yeah, oh yeah... ride em cowboy! Yeehaaa.

anonymous wimp said...

This is just the start.

What happens when all the real estate bubbles from Great Britain, Spain, Australia, etc all start to unravel (and their pace will be speeded by the US mortgage meltdown)?
HAHAHAHAHAHAH-snort-HAHAHAHAHAHAHA-cough-wheeze-HAHAHAHAHAHAHA!
Greedy jerks. Feel the burn, baby!

Anonymous said...

Check this out: "Concerns about the spillover effect of the subprime mortgage market are rattling investors' nerves again today after French bank BNP Paribas (BNPQY, news, msgs) said it is suspending trading in three hedge funds because it could not properly value them due to huge losses in the subprime market." - MSN an short while ago

Anonymous said...

Green eggs and ham.

Disgusting.

Keyser Soze said...

Billy Ray Valentine to GS & BNP Parabus, "Sounds like you're a couple of bookies."

borkafatty said...

HAHA! Anyone see Chimpy Mcflysuit on CNN...If I were a confident President of these United States I would be standing at the podium Shoulders back and standing tall like a "Decider in chief"..not this Moron he stands there like a limp dick leaning to one side like he is board..what a disgrace.

borkafatty said...

look at what's going on in the European money market this morning -- the overnight London Interbank Offered Rate, or LIBOR, is surging. It just soared to 5.86% from 5.35, according to the British Bankers Association, putting it at the highest level since the start of 2001. 3-month LIBOR rose to 5.5% from 5.38%. 6-month LIBOR climbed to 5.39% from 5.34%. The European Central Bank has responded by lending the market the euro equivalent of $130 billion.

This is serious stuff. It's a sign that liquidity is seizing up amid fears of subprime mortgage contagion. LIBOR hardly ever moves on credit concerns, only in response to increases in the federal funds rate. And guess what's tied to LIBOR? All kinds of short-term loans, including some Adjustable Rate Mortgages.

Bottom line: Fasten your seat belts.

Anonymous said...

FINANCIAL SYSTEM SPIN MACHINES IN HYPER WARP DRIVE!!!

They will say almost anything, almost anything to avoid the big panic.

Right now their game plan is deny concern, buck up confidence in the system, hide the true horror and pray like hell they can ride it out.

If they succeed, years from now we'll all hear the truth about how the financial systems almost crashed.

If they fail, we'll hear in a few weeks or a few months, at most.

dopes said...

Stock market up again DOPES!

Looking at DJIA now and it's....

...I come back later...

brokersleaveyoubroke said...

Wait a minute, Bernanke said the subprime problem would be contained. We have funds in Australia, Germany and now France in trouble because of subprime. I guess when he said "contained" he meant contained to the planet earth.

Anonymous said...

Anonymous said...
It's gonna be a white knuckle ride for the troll today!

August 09, 2007 12:46 PM
---------------
Yes, but DOPES & the trolls like him or her will never admit it, they will just be silent on days like today, and come back when the markets forget and bounce back up again. But beware for the stock markets historically the ides of October are traditionally when investors wake/sober up to reality. And this year the Gales of November may come extra early.

brokersleaveyoubroke said...

The bigger this problem gets the bigger the gun they roll out to tell us everything's OK. I think today, without meaning to, the government told us how big this problem really is.

brokersleaveyoubroke said...

I just read about the two french funds that suspended operations because they don't know the value of their assets because nobody is willing to buy them. Correct me if I'm wrong but if you have something and nobody is willing to pay you anything for it doesn't that mean the thing is worth.........nothing.

Anonymous said...

Democrats want a bailout for the banks. Bush says the lenders need to sort this out themselves.

What do you DailyKooks think?

Anonymous said...

Produced by the GOP

Anonymous said...

Delivering on the promise of sub-prime containment I see. What business do French banks have shoveling money to retarded US mortgage slaves? No f*cking wonder I can't afford a house in this corrupt country.

Anonymous said...

OMG, its like each week they just keep upping the ante on the sub-prime/credit motivated stock drops, not sure how this volatility can keep going w/o some sort of negative impact.

On the up side it does keep the trolls & DOPES away!!

Bruiser said...

Remember Enron officials declaring that their company's stock price would rise by double-digit percents while at the same time they were shredding financial records and preparing their golden parachutes?

Its deja vu all over again.

Shakster said...

Since the trend lately has been to limit all real news(Bad) during the trading week,and let it out after fridays close on wall street,I think it is safe to say that the Market will be up tomorrow,and then we will hear of Indy Macs bad situation 1hr after close.Then Country Wide will Blame Indy,and crash.OK,thats's total conjecture,but would be textbook right?

Anonymous said...

Hey Keith, this warning just came out Wall Street Journal, 08/09/07 at 7:16 PM:

"Countrywide Hit by Credit Market Woes

Countrywide Financial Corp. faces "unprecedented disruptions" in debt and mortgage-finance markets that could hurt earnings and the company's financial condition, the Calabasas, Calif., lender said in a regulatory filing.

The company, the largest U.S. home mortgage lender in terms of loan volume, said reduced demand from investors is prompting it to retain more of its loans rather ...
"


Hey DOPES guy, how are you enjoying the ride?

Anonymous said...

Hey Keith,

You have to put up the Al Pichino movie up again for the Hedge Fund blow ups LOL

Anonymous said...

Anonymous said...
Democrats want a bailout for the banks. Bush says the lenders need to sort this out themselves.

What do you DailyKooks think?

August 09, 2007 6:19 PM

----------------------------------- I think; Damn, it`s good to be a kooksta.

Anonymous said...

honica jewinski was WAAAAAAAAAAAAAAAAAAYYYYYY better than this loser named 'Dopes'


bring back honica!!!

Keyser Soze said...

My favorite quote of the day came from CNBC where a banking analyst said...'the banks no longer trust each other' thus the need for the central banks to man up.

This last week has brought us 2 headlines concerning the Seattle RE market:
1) best place to flip.
2) highest increase in housing inventory in the entire nation.

Something's gotta give!!

Shakster said...

Scrambled or over easy? I don't care just give my alot of em,and seconds,and thirds ,and a doggy bag. Thank you.

stuckinthecity said...

Ah, ya gotta love "our fund isn't blowing up" announcements even though the fund is blowing up. They've gotta do it though - only way to get rid of the assets before they hit firesale pricing.



Deny, Deny, Deny. Then run like the dickens.
------------------

They don't have to say sh!t. They are a wealthy private company. There is no such thing as transparency. Think "Enron".

stuckinthecity said...

said it is suspending trading in three hedge funds because it could not properly value them due to huge losses in the subprime market." - MSN an short while ago
-----------

Mark to Market!
Mark to Market!
Mark to Market!
Mark to Market!
Mark to Market!
Mark to Market!
Mark to Market!

Anonymous said...

I'll have them scrambled with toasted Bears Stearns on the side.