Ring the Bell, Dude
The pundits are scaring everyone to death. Here are some choice comments from last week:
The problems in the U.S. subprime mortgage market could spiral out of control into a global financial crisis, economist Mark Zandi said Thursday.
With a “high level of angst” in the financial markets about who will take the losses from more than $1 trillion in risky mortgages, we could be just one hedge-fund collapse away from a global liquidity crisis, said Zandi, chief economist for Moody’s Economy.com.
A global meltdown is not likely, but the risks are growing, Zandi emphasized in a conference call with reporters following the release of a new study on subprime debt that concludes that the housing crisis could be deeper and last longer than investors now believe. MarketWatch
If we get a meltdown I am placing the blame squarely on the Goldman Sachs alumni running amok all over the globe.
All it takes is one dude...to take us all down....
Originally published 12/6/06
True love is rare on Wall Street.
But the stock market certainly seems to be enjoying its recent fling with Hank Paulson, the feisty former Goldman Sachs chairman turned Treasury Secretary.
However, in the age of Sarbanes-Oxley, investors deserve to know about the skeletons in ‘Ole Hank’s closet.
Not long ago, in fact, he had a steamy affair with a company that turned into one of the the bubble’s biggest busts.
Webvan
Paulson had watched as a huge high-tech warehouse in Oakland, chock full of intertwined conveyer belts, spit out perfectly packed crates of groceries...Paulson saw the contraption going full tilt and declared he had seen the future…
The future that Paulson felt he had seen was not limited to supermarkets specifically or even retailing generally...he warned that evening, Goldman Sachs could become the Safeway of investment banking…
Safeway, Albertson’s, and Kroger’s together have revenues of over $150 billion. Webvan, on the other hand, filed for bankruptcy in July 2001-but only after Goldman, at Paulson’s personal urging, had sunk $100 million of its own money into Webvan and sponsored the company’s initial public offering in November 1999. The Accidental Investment Banker
We don’t mean to pick on Hank. Given his clouded judgment, he might have been smoking something. Dudes who love Vans also love to smoke. Currency traders have already taken note of his vices.
No worries...but please press the button on the Van below and help us ring today’s opening bell on Wall Street…
Meanwhile, Paulson is making new Friends
Paulson Rejects Critcism, says China Talks Yielding Results
Bloomberg
--------------------------------------------------------------------------------------------------------------
The content contained represent the opinions of 1440 Wall Street. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author.
Comments:
Next entry: Asian Marts Falling Apart in Early Trading
Previous entry: Race of the Week: Bing Crosby Handicap at Del Mar
