Comments on: Is the Latest Liquidity Crunch in Remission? http://www.nakedcapitalism.com/2008/03/is-latest-liquidity-crunch-in-remission.html Sun, 22 Nov 2009 03:53:33 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Anonymous http://www.nakedcapitalism.com/2008/03/is-latest-liquidity-crunch-in-remission.html#comment-5877 Anonymous Wed, 26 Mar 2008 14:41:00 +0000 http://www.nakedcapitalism.com/2008/03/is-the-latest-liquidity-crunch-in-remission/#comment-5877 For some background on why investment/commercial banks aren't lending, readers should check out this report "Leveraged Losses: Lessons from the Mortgage Market Meltdown†" by David Greenlaw, Jan Hatzius, Anil K Kashyap, Hyun Song Shin. I found the report very helpful in providing a framework to think about the current mess. The report explores three things 1 why banks are behaving the way they are--hoarding cash, 2 a rigorous look at the magnitude of write-downs, and 3 solutions<br/><br/>I just googled the title for the pdf. <br/><br/>One of the authors works at Goldman so reading the report will likely shed some light on that company's recent change in write-offs which was discussed on this site yesterday. For some background on why investment/commercial banks aren’t lending, readers should check out this report “Leveraged Losses: Lessons from the Mortgage Market Meltdown†” by David Greenlaw, Jan Hatzius, Anil K Kashyap, Hyun Song Shin. I found the report very helpful in providing a framework to think about the current mess. The report explores three things 1 why banks are behaving the way they are–hoarding cash, 2 a rigorous look at the magnitude of write-downs, and 3 solutions

I just googled the title for the pdf.

One of the authors works at Goldman so reading the report will likely shed some light on that company’s recent change in write-offs which was discussed on this site yesterday.

]]> By: darkcloud http://www.nakedcapitalism.com/2008/03/is-latest-liquidity-crunch-in-remission.html#comment-5875 darkcloud Wed, 26 Mar 2008 14:22:00 +0000 http://www.nakedcapitalism.com/2008/03/is-the-latest-liquidity-crunch-in-remission/#comment-5875 Great post, Yves. Your summary at the end says it all, IMHO. I, too, am pessimistic about what lies ahead.<br/><br/>Cheers, (and fears). Great post, Yves. Your summary at the end says it all, IMHO. I, too, am pessimistic about what lies ahead.

Cheers, (and fears).

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/is-latest-liquidity-crunch-in-remission.html#comment-5874 Anonymous Wed, 26 Mar 2008 14:12:00 +0000 http://www.nakedcapitalism.com/2008/03/is-the-latest-liquidity-crunch-in-remission/#comment-5874 Martin Wolf does the impossible! He comes close to uttering the words, "I was wrong!" Hats off to him. I don't hear it often.<br/><br/>"Once upon a time, I had hoped that securitisation would shift a substantial part of the risk-bearing outside the regulated banking system, where governments would no longer need to intervene. <b>That has proved a delusion.</b> A vast amount of risky, if not downright fraudulent, lending, promoted by equally risky finance, has made securitised markets highly risky." Martin Wolf does the impossible! He comes close to uttering the words, “I was wrong!” Hats off to him. I don’t hear it often.

“Once upon a time, I had hoped that securitisation would shift a substantial part of the risk-bearing outside the regulated banking system, where governments would no longer need to intervene. That has proved a delusion. A vast amount of risky, if not downright fraudulent, lending, promoted by equally risky finance, has made securitised markets highly risky.”

]]> By: Anonymous http://www.nakedcapitalism.com/2008/03/is-latest-liquidity-crunch-in-remission.html#comment-5867 Anonymous Wed, 26 Mar 2008 12:20:00 +0000 http://www.nakedcapitalism.com/2008/03/is-the-latest-liquidity-crunch-in-remission/#comment-5867 It's as difficult as ever to borrow. We're starting to have to give advance notice of needs weeks in advance for small sums on major currencies. It’s as difficult as ever to borrow. We’re starting to have to give advance notice of needs weeks in advance for small sums on major currencies.

]]>