The Credit Crisis Financial Stocks Short Journal

I was a fan of that in Nov when the mar11 call was $0.30. I felt like they were more than fully valued at that time. It's 5 months later and they around the same price. I don't feel like that's a great bid right now.

If they move to the high 30s, that will get my attention.

 

Dick Fuld said LEH lost $30b in liquidity in the two days leading up to the weekend. The CDS was around 600-700bps, so lets make no mistake, of lot of outflows could be hitting the Greek banks but that information is not being made public because its against the banks interest. Trichet is speaking right now and apparently made no mention of loosening the ECB window, he is playing with fire

 

Looks like credit ratings matter after all

It’s a double whammy: you’re downgraded, so you have to post more collateral, and the collateral you post gets downgraded, so you have to post more of it,” Mehernosh Engineer, a credit strategist at BNP in London, said in an interview. “If Greek banks can’t post collateral, the counterparty gets in trouble. To resolve this, you have to start selling assets. That puts more pressure on an already weak system.”

http://www.bloomberg.com/apps/news?pid=20601110&sid=aZjn7JXpAKCU

The way things are going the greek banking system wont survive much longer

 

Anybody have a list of Greek stocks or etfs to buy after this finally goes down. Sovereign defaults/devaluations usually make outstanding spots to bank some coin by rushing in to buy stocks.

If Greece were to pull out of the EMU, that would be wildly bullish over the long term for many of their companies.

 

This one, maybe:
http://www.euronext.com/trader/summarizedmarket/stocks-2783-EN-FR0010405431.html?selectedMep=1

I'm not really sure how one could be bullish companies that participate in an economy as screwed up as the Greek ones. Unless it's 'cause they don't pay any taxes

 

The symbol on IB is GRE

 

'Invisible Hands' is great, just finished the chapter by Jim Leitner, very interesting trade ideas and portfolio contruction themes

 

S&P downgrades Spain, there is simply no reason to expect the agencies to play ball and sucumb to political pressure, they are not afraid of sinking the EU experiment and turning the EUR into confetti

 

Do you think they are basically puppets of US interests, Daal?

First rating all the toxic CDO's triple A and spreading it all over the world, now attacking Europe's sovereign debt on a daily basis...

 

I believe they became so influential as a result of bad regulation(Basel accords), it created demand for AAA assets since they had lower capital weightings, they met that demand by coming up with suspect models. Whether their models were the result of stupidity or criminal greed I dont know