Today S&P published "hopes that the [subprime] crisis can be contained over the next few quarters." In other words: we don't have an accounting of the damage yet, less than half of which has been publicly disclosed so far, but we think we may get a grip in the next nine to twelve months. This report assuaged investors today? Incredible.
S&P says that we know 110 billion USD has been written off by Merrill, UBS, Citi, AIG, Swiss Reinsurance, et cetera; and guesses there is at least 135 billion USD to go. Oh heavens, that futurenews is going to be understood when it turns news, right? Because S&P has warned us it would surely come, right?
Perhaps the news at Carlyle Capital Corp. prompted such kind words from S&P? Carlyle stock plummeted 88% as they hit the point of asset seizure and liquidation: failure. "Nevermind the dead body, folks, nothing to see here, move along; we knew this was coming, no surprises, move along, move along."
In other words, we see a bottom a few quarters off - there are going to be a few hundred billion dollars in write-offs soon - but don't panic we have it contained.
-
1 comment:
The Day After. After S&P's deception cleared away, the mighty Bear Stearns is found mortally wounded, laid low.
"Bear's crisis is the latest sign that the U.S. financial system is cracking under the weight of a global credit crunch that was sparked by last year's subprime mortgage meltdown," Alistair Barr of MarketWatch writes.
S&P's report was a feint. How many times can S&P cry wolf and still be believed? The people will not be so easily bedazzled by cunning turn of phrase for much longer.
Post a Comment