If you enjoy the content at iBankCoin, please follow us on TwitterGeneva – The global financial crisis could lead to losses of 1,600 billion dollars for financial institutes, according a report in the Swiss Sunday newspaper SonntagsZeitung. It quoted a confidential study by the hedge fund Bridgewater Associates as saying losses for banks holding risky assets could be four times greater than the 400 billion dollars previously estimated.
The hedge fund expressed doubts that the financial institutes would be able to drum up enough funds to cover the losses, something it said could exacerbate the crisis.
Bridgewater, one of the world’s biggest hedge funds, based its calculations on the state of risky debt-based US assets, such as mortgages, credit and credit card demands.
The value of such risky assets is 26,600 billion dollars, according to the hedge fund. The losses would amount to 1,600 billion dollars if these assets were valued at market rates and not in the form of securitization, the newspaper said.
Joined Nov 10, 2007
23,444 Blog Posts
dizz am.
I wonder how handsomely these Bridgewater fuckers will profit from their own now-disclosed “research”.
and that’s only the 1st shoe that has dropped!
http://mrmortgage.ml-implode.com/2008/07/06/indymac-significant-seizure-chatter-is-this-the-end-finally/
http://www.safehaven.com/article-10679.htm
Lets just call this what its gonna be – The Bridgewater Bottom.
Now that those fuckers are finally short, they jump on the bandwagon. Egregious. Look for the Bridgewater Rally this week.
I keep hearing about the fucking short interest being high and the contrariness of it all. Fuck you. Short interest can not get fucking high, because these fuckballs are not going to crash their own books. Get it? Short interest is five percent of the NYSE float. There is less than ten billion of real short funds out there. Every one else plays the swings on the margins, because, once again, they are not going to crash their own book.
Next time I will address the subject of money in cash that just can’t wait to buy equities. Fuck you too.
I’m wearing pink undies, and have a Cramer tooth brush…
Crude setting up nicely for tomorrow morning.
“Howie”:
What does this mean: ” I’m wearing pink undies, and have a Cramer tooth brush… “
I wonder who gets to cough up the $1.6 trill?
Howie are you still listening to Elton John?
Cheesefries- I read that there was a pretty good crowd to watch the Finals at Pinehurst yesterday. I have seen both Savage and Lovemark play over the years and both are nice guys and I am glad for both.
I missed caddying the North-South Am this year for the first time in four years as my son is in summer school wrapping up his Bachelors degree in three years so he can do his MBA in his last year of eligibility.
I hope he qualifies for the US Amateur in a few weeks so I can get back to Pinehurst next month. I love the town and Course No. 2.
From Boomer’s article– an unintentionally hilarious typo:
Banks are not lending because they are too cash strapped to lend. Many banks are technically insolent (sic) and can’t lend.
I’ve believed banks have been technically– and practically– insolent for years now.
_
Btw– if anyone didn’t get a chance to short FED in the last two months, it’s currently 45 cents higher than it ever has any right to be. I don’t think it’ll be there long.
__
Quick update. The dollar is back to being a sound currency, oil is going to 30 dollars and stok are a buy of a lifetime. I was wrong about everything I said before.
WFSL!!
Flymastah!
_
Note also — Jake short suggestion from yesterday on Cajun’s blog… “CYN” — “down even when the other crap is up.” TM
__
I missed caddying the North-South Am this year for the first time in four years as my son is in summer school wrapping up his Bachelors degree in three years so he can do his MBA in his last year of eligibility.
This is perspicacious. Did you know that Mick Jagger got his MBA (London School of Economics) after the Stones were already wildly famous?
_
Look at FED… whattafugginjoke.
__
Bridgewater may be understating the problem. The derivative market is somewhere close to $300 trillion. I can’t imagine wha would happen if the house of cards comes tumbling down. World GDP is about $60 trillion in comparison.
$1.6 trill? Well, I certainly am ready to pay my fair share – right after Hank Paulson pays up.