[bsrsharma]

You should read about “repo”s (Repurchase agreements) in those links.

See also, http://en.wikipedia.org/wiki/Repurchase_agreement

In theory, the Fed can take any paper you have, including a used bus ticket, and “loan” you money for as long as they want, at whatever interest rate they want, including zero. This is the basis of the concept of fiat paper money i.e. there is no Reserve in “Federal Reserve”.

[bsrsharma]

You should read about “repo”s (Repurchase agreements) in those links.

See also, http://en.wikipedia.org/wiki/Repurchase_agreement

In theory, the Fed can take any paper you have, including a used bus ticket, and “loan” you money for as long as they want, at whatever interest rate they want, including zero. This is the basis of the concept of fiat paper money i.e. there is no Reserve in “Federal Reserve”.

[bsrsharma]

You should read about “repo”s (Repurchase agreements) in those links.

See also, http://en.wikipedia.org/wiki/Repurchase_agreement

In theory, the Fed can take any paper you have, including a used bus ticket, and “loan” you money for as long as they want, at whatever interest rate they want, including zero. This is the basis of the concept of fiat paper money i.e. there is no Reserve in “Federal Reserve”.

[bsrsharma]

Top US analyst hits back after death threats over Citigroup downgrade
Tom Bawden in New York

Meredith Whitney: The $360bn analyst | Citigroup fears send Wall Street reeling | Citigroup chief is about to quit amid mounting woes | Wall St braced for $10bn more credit crunch hits

Meredith Whitney, the analyst who prompted a $369 billion (£177 billion) plunge in the value of US shares on Thursday by issuing a negative note on Citigroup, hit out at Wall Street’s culture of intimidation yesterday after receiving several death threats from investors in the bank.

Ms Whitney, a CIBC analyst who is married to the former World Wrestling Entertainment champion Death Mask, prompted a near 7 per cent drop in Citigroup’s shares on Thursday, after suggesting that the bank needed to raise more than $30 billion to restore its capital cushion.

She also downgraded her recommendation on Citigroup’s shares to “market underperform” in the note that set off America’s biggest stock market decline since August.

Ms Whitney, Forbes’s second-highest ranked stock picker for 2007, told The Times: “People are scared to be negative, especially when a company has such a wide holding. Clients are not pleased with my call and I have had several death threats.

“But it was the most straightforward call I’ve made in my career and I am surprised my peer analysts have been resistant. It’s so straightforward, it’s indisputable.”…..

http://business.timesonline.co.uk/tol/business/markets/article2796774.ece

[bsrsharma]

Top US analyst hits back after death threats over Citigroup downgrade
Tom Bawden in New York

Meredith Whitney: The $360bn analyst | Citigroup fears send Wall Street reeling | Citigroup chief is about to quit amid mounting woes | Wall St braced for $10bn more credit crunch hits

Meredith Whitney, the analyst who prompted a $369 billion (£177 billion) plunge in the value of US shares on Thursday by issuing a negative note on Citigroup, hit out at Wall Street’s culture of intimidation yesterday after receiving several death threats from investors in the bank.

Ms Whitney, a CIBC analyst who is married to the former World Wrestling Entertainment champion Death Mask, prompted a near 7 per cent drop in Citigroup’s shares on Thursday, after suggesting that the bank needed to raise more than $30 billion to restore its capital cushion.

She also downgraded her recommendation on Citigroup’s shares to “market underperform” in the note that set off America’s biggest stock market decline since August.

Ms Whitney, Forbes’s second-highest ranked stock picker for 2007, told The Times: “People are scared to be negative, especially when a company has such a wide holding. Clients are not pleased with my call and I have had several death threats.

“But it was the most straightforward call I’ve made in my career and I am surprised my peer analysts have been resistant. It’s so straightforward, it’s indisputable.”…..

http://business.timesonline.co.uk/tol/business/markets/article2796774.ece

[bsrsharma]

Top US analyst hits back after death threats over Citigroup downgrade
Tom Bawden in New York

Meredith Whitney: The $360bn analyst | Citigroup fears send Wall Street reeling | Citigroup chief is about to quit amid mounting woes | Wall St braced for $10bn more credit crunch hits

Meredith Whitney, the analyst who prompted a $369 billion (£177 billion) plunge in the value of US shares on Thursday by issuing a negative note on Citigroup, hit out at Wall Street’s culture of intimidation yesterday after receiving several death threats from investors in the bank.

Ms Whitney, a CIBC analyst who is married to the former World Wrestling Entertainment champion Death Mask, prompted a near 7 per cent drop in Citigroup’s shares on Thursday, after suggesting that the bank needed to raise more than $30 billion to restore its capital cushion.

She also downgraded her recommendation on Citigroup’s shares to “market underperform” in the note that set off America’s biggest stock market decline since August.

Ms Whitney, Forbes’s second-highest ranked stock picker for 2007, told The Times: “People are scared to be negative, especially when a company has such a wide holding. Clients are not pleased with my call and I have had several death threats.

“But it was the most straightforward call I’ve made in my career and I am surprised my peer analysts have been resistant. It’s so straightforward, it’s indisputable.”…..

http://business.timesonline.co.uk/tol/business/markets/article2796774.ece

[bsrsharma]

Top US analyst hits back after death threats over Citigroup downgrade
Tom Bawden in New York

Meredith Whitney: The $360bn analyst | Citigroup fears send Wall Street reeling | Citigroup chief is about to quit amid mounting woes | Wall St braced for $10bn more credit crunch hits

Meredith Whitney, the analyst who prompted a $369 billion (£177 billion) plunge in the value of US shares on Thursday by issuing a negative note on Citigroup, hit out at Wall Street’s culture of intimidation yesterday after receiving several death threats from investors in the bank.

Ms Whitney, a CIBC analyst who is married to the former World Wrestling Entertainment champion Death Mask, prompted a near 7 per cent drop in Citigroup’s shares on Thursday, after suggesting that the bank needed to raise more than $30 billion to restore its capital cushion.

She also downgraded her recommendation on Citigroup’s shares to “market underperform” in the note that set off America’s biggest stock market decline since August.

Ms Whitney, Forbes’s second-highest ranked stock picker for 2007, told The Times: “People are scared to be negative, especially when a company has such a wide holding. Clients are not pleased with my call and I have had several death threats.

“But it was the most straightforward call I’ve made in my career and I am surprised my peer analysts have been resistant. It’s so straightforward, it’s indisputable.”…..

http://business.timesonline.co.uk/tol/business/markets/article2796774.ece

[bsrsharma]

Yes; If any of the major $ denominated asset holders lose their nerve now, it can be all over very fast. We can easily see a 50% devaluation and interest rates above 10% in less than a year. Things can get much uglier than mere recession when faith in currency is lost.

[bsrsharma]

Yes; If any of the major $ denominated asset holders lose their nerve now, it can be all over very fast. We can easily see a 50% devaluation and interest rates above 10% in less than a year. Things can get much uglier than mere recession when faith in currency is lost.

[bsrsharma]

Yes; If any of the major $ denominated asset holders lose their nerve now, it can be all over very fast. We can easily see a 50% devaluation and interest rates above 10% in less than a year. Things can get much uglier than mere recession when faith in currency is lost.

[bsrsharma]

Yes; If any of the major $ denominated asset holders lose their nerve now, it can be all over very fast. We can easily see a 50% devaluation and interest rates above 10% in less than a year. Things can get much uglier than mere recession when faith in currency is lost.

[bsrsharma]

what you are saying is gambling

Actually not – Let us analyze some scenarios:

1. The property price appreciates – the buyer is happy and enjoys the new wealth. He may decide to sell and monetize his gains.

2. The property price depreciates – not a concern, if he wants to live there and has sufficent cash flow to finance it. If it depreciates dramatically, say 50% in a year or two, he can structure the transaction such that he can walk away at a small loss, if he feels like.

3. His cash flow improves significantly – he can pay back the loan and live happily – if he wants.

4. His cash flow falls dramatically – he can sell the house, if the value is profitable or send the keys to the lender, as a last resort – with a small loss – if structured properly.

In all cases, the borrower stands to win big or lose small. The main thing is to shield his net worth from the loan with robust legal firewalls.

Now if you ask me if the lender is gambling – I have a short answer: Yes {Ask Bear/Merrill/Citi for confirmation!}

[bsrsharma]

what you are saying is gambling

Actually not – Let us analyze some scenarios:

1. The property price appreciates – the buyer is happy and enjoys the new wealth. He may decide to sell and monetize his gains.

2. The property price depreciates – not a concern, if he wants to live there and has sufficent cash flow to finance it. If it depreciates dramatically, say 50% in a year or two, he can structure the transaction such that he can walk away at a small loss, if he feels like.

3. His cash flow improves significantly – he can pay back the loan and live happily – if he wants.

4. His cash flow falls dramatically – he can sell the house, if the value is profitable or send the keys to the lender, as a last resort – with a small loss – if structured properly.

In all cases, the borrower stands to win big or lose small. The main thing is to shield his net worth from the loan with robust legal firewalls.

Now if you ask me if the lender is gambling – I have a short answer: Yes {Ask Bear/Merrill/Citi for confirmation!}

[bsrsharma]

what you are saying is gambling

Actually not – Let us analyze some scenarios:

1. The property price appreciates – the buyer is happy and enjoys the new wealth. He may decide to sell and monetize his gains.

2. The property price depreciates – not a concern, if he wants to live there and has sufficent cash flow to finance it. If it depreciates dramatically, say 50% in a year or two, he can structure the transaction such that he can walk away at a small loss, if he feels like.

3. His cash flow improves significantly – he can pay back the loan and live happily – if he wants.

4. His cash flow falls dramatically – he can sell the house, if the value is profitable or send the keys to the lender, as a last resort – with a small loss – if structured properly.

In all cases, the borrower stands to win big or lose small. The main thing is to shield his net worth from the loan with robust legal firewalls.

Now if you ask me if the lender is gambling – I have a short answer: Yes {Ask Bear/Merrill/Citi for confirmation!}

[bsrsharma]

what you are saying is gambling

Actually not – Let us analyze some scenarios:

1. The property price appreciates – the buyer is happy and enjoys the new wealth. He may decide to sell and monetize his gains.

2. The property price depreciates – not a concern, if he wants to live there and has sufficent cash flow to finance it. If it depreciates dramatically, say 50% in a year or two, he can structure the transaction such that he can walk away at a small loss, if he feels like.

3. His cash flow improves significantly – he can pay back the loan and live happily – if he wants.

4. His cash flow falls dramatically – he can sell the house, if the value is profitable or send the keys to the lender, as a last resort – with a small loss – if structured properly.

In all cases, the borrower stands to win big or lose small. The main thing is to shield his net worth from the loan with robust legal firewalls.

Now if you ask me if the lender is gambling – I have a short answer: Yes {Ask Bear/Merrill/Citi for confirmation!}

[Author]

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