The BillyB, Aster & JR8 roundtable!

[JR8]

What I find amusing is that France are trying to get the EFSF (Germany) to bail-out Dexia, rather than facing up to their responsibilities and bailing it out directly.

France wouldn't want to get downgraded would it? That would be sooooo (hilariously) humiliating. Oh look the emperor really has no clothes!

[JR8]

On other current matters, in the UK cabinet.

Ooh, er. The usual wedding scandal is the best man sticking it to a bridesmaid, not the groom!

[JR8]

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'Although Greece's 10-year bonds are trading at a 60pc discount on the open market, European banks do not have to write down losses so long as there is no formal default and the debt is held in their long-term loan book. The danger arises if banks are forced to "crystallize" the damage before raising their capital buffers.'
http://www.telegraph.co.uk/finance/fina ... wball.html
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A-ha! So EU banks do not have to mark-to-market their bad debt. I find that quite amazing. No wonder they want Greece kept on life-support until the EFSF has got enough funding to pre-emptively shore up the more vulnerable banks (the early dominoes).

Wow.

[BillyB]

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'Although Greece's 10-year bonds are trading at a 60pc discount on the open market, European banks do not have to write down losses so long as there is no formal default and the debt is held in their long-term loan book. The danger arises if banks are forced to "crystallize" the damage before raising their capital buffers.'
http://www.telegraph.co.uk/finance/fina ... wball.html
------------


A-ha! So EU banks do not have to mark-to-market their bad debt. I find that quite amazing. No wonder they want Greece kept on life-support until the EFSF has got enough funding to pre-emptively shore up the more vulnerable banks (the early dominoes).

Wow.

Yep, bizarre as it is, it was introduced in 2009 after the GFC. As long as there is no default then bank can use the price under 'usual' market conditions a.k.a. TBP - the bullshit price.

Just the small issue of how do you make a market with them??!!

[JR8]

Yeah, and how do you value the holding bank's shares if they can legitimately value assets at TBP?

You say this was introduced after the GFC. I'd be interested to know how the policy was justified. It just seems to be a way for banks to ignore their toxic balance sheets and carry on as if nothing is wrong.

It's through-the-looking-glass stuff.

[aster]

http://www.columbiaspectator.com/2011/1 ... re-barnard

Just too funny, CEO of Greed Inc. runs away from university lecture, scared of students...

[JR8]

http://www.columbiaspectator.com/2011/1 ... re-barnard

Just too funny, CEO of Greed Inc. runs away from university lecture, scared of students...

How incredibly sad. A bunch of supposedly bright children afraid of freedom of speech.

[JR8]

Noel Gallagher on Newsnight…

‘We were working class. There’s a level beneath us now. The can’t-be-bothered-working class’

http://www.youtube.com/watch?v=8bjN7pTZjbA

[JR8]

S&P downgrades Spain.

..... Zzzz no one really cares any more... zzzz

[BillyB]

S&P downgrades Spain.

..... Zzzz no one really cares any more... zzzz

http://www.bloomberg.com/news/2011-10-1 ... rison.html

If everyone corrupt in banking were exposed they wouldn't have the capacity to hold them all......

Serves the tw*t right.

[BillyB]

http://on.ft.com/q5jwlk

Intel - profits up.....

[JR8]

Nice, plus a $10bn buy-back!

[JR8]

The face of modern-day France.



‘You have lost a good opportunity to shut up,’ an apparently rattled Mr Sarkozy sneeringly told our Prime Minister. ‘We are sick of you criticising us and telling us what to do. You say you hate the euro and now you want to interfere in our meetings.’
http://www.dailymail.co.uk/debate/artic ... ouble.html

[JR8]

Merkel gives a glimmer of hope:

“If the euro fails, Europe fails…”

[JR8]