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Tenali_rk
Junior Artist
Username: Tenali_rk

Post Number: 174
Registered: 05-2008
Posted From: 96.255.142.77

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Posted on Tuesday, July 07, 2009 - 08:02 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)


Mrhyderabad:

Der_schuler:

Investment banks, including Goldman Sachs and Barclays Capital, are inventing schemes to reduce the capital cost




Der brother deeni meedha kochem light veyyi...

Headline: Goldman Could Lose Millions from Code Theft, US Says

http://www.cnbc.com/id/31783285
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Der_schuler
Comedian
Username: Der_schuler

Post Number: 1167
Registered: 01-2009
Posted From: 24.14.147.0

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Posted on Tuesday, July 07, 2009 - 06:31 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)


Linkmaster:

with the kind of infrastructure, universities, waste and good land for farming, reasearch institutes and cream of layer of people, where this country will go?. I see it has over consumed than required. If it start correcting its faults, this is the country which will spinn back world economy and no other country come close to it..

correct me if my openion is wrong..




Chinese, eastern european immigs and Indian immig filed together 80% of american scientific patents....for the last decade....the rate of iimig to US has fallen by 25% from 9/11....

Natural resources I agree...u make a sound point....

Universities....I disagree............Europe has a good an univ as US....

creamy layer...refer to point one.....

A country whose avg math scores are not even in the top 10 in the world....talking abt aboriginal creamy layer is ridiculous........

This world will see the rise of fractured power stretches in the next 10 years..US as a super power....DREAM
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Linkmaster
Side Hero
Username: Linkmaster

Post Number: 7276
Registered: 02-2008
Posted From: 12.34.246.72

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Posted on Tuesday, July 07, 2009 - 06:25 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)


Der_schuler:

china holding a 800Bill USD in Govt debt.....Russia with abt 400 Bill USD.....If I were to bet the house, I would say.unless...US govt does pull of a major economic miracle...we are bracing for a chnage of guard here....The days of US as a power are numbered...in few years.....the hype of excessive liberty...bordering on hedonism, a true lack of a culture to nurture a stable family and savings....traditional economics was always right when it advised moderation...drawing parallels to all philosophical beliefs......


..

with the kind of infrastructure, universities, waste and good land for farming, reasearch institutes and cream of layer of people, where this country will go?. I see it has over consumed than required. If it start correcting its faults, this is the country which will spinn back world economy and no other country come close to it..

correct me if my openion is wrong..
"Reputation to be valued more than one's life".. Geetha
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Der_schuler
Comedian
Username: Der_schuler

Post Number: 1165
Registered: 01-2009
Posted From: 24.14.147.0

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Posted on Tuesday, July 07, 2009 - 06:13 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

china holding a 800Bill USD in Govt debt.....Russia with abt 400 Bill USD.....If I were to bet the house, I would say.unless...US govt does pull of a major economic miracle...we are bracing for a chnage of guard here....The days of US as a power are numbered...in few years.....the hype of excessive liberty...bordering on hedonism, a true lack of a culture to nurture a stable family and savings....traditional economics was always right when it advised moderation...drawing parallels to all philosophical beliefs......

Human greed has once again defeated him.....it gave us the greenhouse effect...now the greatest depletion of human wealth ever recorded...
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Der_schuler
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Username: Der_schuler

Post Number: 1164
Registered: 01-2009
Posted From: 24.14.147.0

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Posted on Tuesday, July 07, 2009 - 06:07 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)


Linkmaster:


mee predictions cheppandi.. epppataki US economy ok ayyiddi?




I am not qualified to make a prediction...I am just a quantitative chap...not an economist by any definition of the word.....
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Der_schuler
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Username: Der_schuler

Post Number: 1163
Registered: 01-2009
Posted From: 24.14.147.0

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Posted on Tuesday, July 07, 2009 - 06:06 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)


Mrhyderabad:

AFAIK, CDOs aren't that bad if you go by their definition. Am i wrong?




The problem with traditional CDO was that no one ever had a working model to quantify credit risk and default risk....for plain vanilla instruments...you can massage ur model here and some there...but for these nonlinear instruments....prone to higher order effects of cap mkts, it is a scary task....

now they are using the principles of insurance...fine...but what abt the credit crunch....a extremal event of sorts...no one knows how they would react until they hit you hard.....

fingers crossed...I know the team that is working on modeling these...smart chaps...a couple of MIT and Berkeley finance PhD's were hired abt 6 years ago to work on these variants....have to see what they come up with.....
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Mrhyderabad
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Username: Mrhyderabad

Post Number: 2315
Registered: 01-2008
Posted From: 167.230.38.118

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Posted on Tuesday, July 07, 2009 - 05:27 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)


Linkmaster:

epppataki US economy ok ayyiddi?


Idi teliyaka Buffett peddayana billions loss lo vunnadu
Perception is immune to Intellectual Correction ...
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Linkmaster
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Username: Linkmaster

Post Number: 7275
Registered: 02-2008
Posted From: 12.34.246.72

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Posted on Tuesday, July 07, 2009 - 05:22 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)


Mrhyderabad:

Ee roju economy inta M avvadaaniki reason ayina CDOs ni malli market lo ki different name tho teesukuvasthunnaru GS and barcap etc ani Der bro tension padutunnaru.

These new products are more or less same as old stuff but they are packaging them in a new wrapper with a new name.





Thanks Thammudu..

DER finanace expert..


mee predictions cheppandi.. epppataki US economy ok ayyiddi?
"Reputation to be valued more than one's life".. Geetha
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Mrhyderabad
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Username: Mrhyderabad

Post Number: 2314
Registered: 01-2008
Posted From: 167.230.38.118

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Posted on Tuesday, July 07, 2009 - 05:18 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)


Linkmaster:

Bottom line cheppu Der..


Ee roju economy inta M avvadaaniki reason ayina CDOs ni malli market lo ki different name tho teesukuvasthunnaru GS and barcap etc ani Der bro tension padutunnaru.

These new products are more or less same as old stuff but they are packaging them in a new wrapper with a new name.
Perception is immune to Intellectual Correction ...
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Scallion
Junior Artist
Username: Scallion

Post Number: 246
Registered: 05-2009
Posted From: 65.217.188.20

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Posted on Tuesday, July 07, 2009 - 05:16 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

Can you explain what is bad or good
Jai TDP. Jai Jai NTR
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Linkmaster
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Username: Linkmaster

Post Number: 7274
Registered: 02-2008
Posted From: 12.34.246.72

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Posted on Tuesday, July 07, 2009 - 05:14 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

Bottom line cheppu Der..
"Reputation to be valued more than one's life".. Geetha
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Mrhyderabad
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Username: Mrhyderabad

Post Number: 2313
Registered: 01-2008
Posted From: 167.230.38.118

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Posted on Tuesday, July 07, 2009 - 05:12 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)


Der_schuler:

Investment banks, including Goldman Sachs and Barclays Capital, are inventing schemes to reduce the capital cost


Do they have any other choice?

AFAIK, CDOs aren't that bad if you go by their definition. Am i wrong?

They will do the same kind of business except they will be little more careful this time.
Perception is immune to Intellectual Correction ...
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Der_schuler
Comedian
Username: Der_schuler

Post Number: 1162
Registered: 01-2009
Posted From: 24.14.147.0

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Posted on Tuesday, July 07, 2009 - 05:00 pm:   Insert Quote Edit PostDelete PostPrint Post   Move Post (Moderator/Admin Only)Ban Poster IP (Moderator/Admin only)

http://www.ft.com/cms/s/0/47403c68-698f-11de-bc9f-00144feabd c0.html

Investment banks, including Goldman Sachs and Barclays Capital, are inventing schemes to reduce the capital cost of risky assets on banks’ balance sheets, in the latest sign that financial market innovation is far from dead.

The schemes, which Goldman insiders refer to as “insurance” and BarCap calls “smart securitisation”, use different mechanisms to achieve the same goal: cutting capital costs by up to half in some cases, at the same time as regulators are threatening to force banks to increase their capital requirements.

BarCap’s structures involve the pooling of assets from several clients into a secured financial product that can be sold on to other investors and rated by a credit rating agency, potentially reducing the capital allocated against the assets by between 10 per cent and 50 per cent.

These new mechanisms are in some respects similar to the discredited structured products, which were widely blamed for fuelling the financial crisis. But the schemes’ backers argue there are two significant differences. First, they involve the securitisation of banks’ existing assets, rather than of new lending. Second, bankers argue that the new products do not disguise the transfer of risk.

“This is the world of smart securitisation,” said Geoff Smailes, managing director of global credit solutions at BarCap. “It’s not securitisation for leverage and arbitrage purposes any more. This is all about restructuring portfolios of assets to achieve risk, capital and funding efficiency in a transparent and less complex way.”

However, some regulators may be wary of the invention of new pooled asset derivatives, especially if they are perceived as a way to avoid regulatory capital requirements.

Some rival bankers also view the schemes with scepticism. “This is a system of capital arbitrage,” said one senior banker at another investment bank. “The need for capital just miraculously disappears.”

BarCap has worked on portfolios worth hundreds of billions of pounds in recent months, including those of the Barclays’ parent company. Investors in the securitised products typically include the original banks, plus third parties, such as hedge funds and private equity firms, as well as BarCap itself.

Separately, Goldman is working on what bankers said was a private-sector version of the UK government’s asset protection scheme. The goal would be similar – to reduce the capital that would need to be held against the assets – although Goldman has yet to find a balance between the risks and rewards that would be attractive to investors.

Investment banks do not believe they can compete with the government-sponsored APS, mainly due to scale. RBS and Lloyds between them are putting £560bn ($914bn) into the scheme. Under Goldman’s idea, it would sell an insurance product to a bank with a toxic portfolio, effectively shifting the risk of the underlying assets off the balance sheet. The insurance would require far less capital to be carried against it than the original assets.

Deutsche Bank engineered a comparable structure to facilitate the dismantling of risk at failed insurer AIG, although bankers close to that transaction said without government involvement the cost of such a structure would be commercially unfeasible.

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