cheesedog's Profile
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Entry: Write-Offs: 09.29.08
posted by cheesedog
Sep 29, 2008 11:04PM
And I just had the courage to take a dump. It was fibrous and floated.
Entry: Kicking It With The FASB
posted by cheesedog
Sep 30, 2008 5:26PM
I am involved in the structured credit business (for now), and I actually think that this MTM change is the only way out. Plenty of the CDOs that are marked at 20 cents are going to recover 75 or more. But because there are no buyers, and dealers are cowards, they mark them as low as possible to avoid being sued. If you cant sell your house in 6 months, is it worthless? Should you be forced to file? Temporary lack of buyers doesnt make something worthless. This stuff isnt worth par. But it isnt worthless either. Most of the paper is performing fine and pays interest quarterly.
Entry: Kicking It With The FASB
posted by cheesedog
Sep 30, 2008 5:27PM
I am involved in the structured credit business (for now), and I actually think that this MTM change is the only way out. Plenty of the CDOs that are marked at 20 cents are going to recover 75 or more. But because there are no buyers, and dealers are cowards, they mark them as low as possible to avoid being sued. If you cant sell your house in 6 months, is it worthless? Should you be forced to file? Temporary lack of buyers doesnt make something worthless. This stuff isnt worth par. But it isnt worthless either. Most of the paper is performing fine and pays interest quarterly.
Entry: Adventures In Absurdly Unfounded, Highly Suspect Rumors, Jack Donaghy Edition
posted by cheesedog
Oct 01, 2008 10:41AM
We are hearing that a $30 billion Gordian Knot sponsored SIV (SIGMA) was invested heavily in asset-backed and unsecured debt in financials -- including GE credit bonds.
SIGMA has been borrowing heavily to make coupon payments, and yesterday a counterparty (apparently JPMorgan) called in their collateral backing of a repo line to them.
Much of that collateral was in the form of GE Commercial credit -- which is being sold -- and resulting in GE CDS spreads widening out.
Entry: Adventures In Absurdly Unfounded, Highly Suspect Rumors, Jack Donaghy Edition
posted by cheesedog
Oct 01, 2008 11:45AM
Agree Marshall....already tighter. Technical move with no credit justification.
Entry: France Considering Bailout Of Its Own
posted by cheesedog
Oct 01, 2008 1:15PM
Cant wait to see these countries that hate each other try to agree on how to spend 300Bn. Catfight!
Entry: Investing In The Buff: Warren Endorses GE
posted by cheesedog
Oct 01, 2008 2:20PM
Interesting....GE CDS is widening out again
Entry: Voting On The Bailout: Let's Try This One More Time
posted by cheesedog
Oct 01, 2008 9:08PM
Kudlow is an idiot blowhard. So is his guest in the mustard shirt. I want them to fight.
Entry: Voting On The Bailout: Let's Try This One More Time
posted by cheesedog
Oct 01, 2008 9:12PM
Why do they have college professors on this network? They know nothing of the market. Everything they blab is theory and completely irrelevant to the real world. CNBC, no more college guys in horrible outfits.
Entry: Voting On The Bailout: Let's Try This One More Time
posted by cheesedog
Oct 01, 2008 9:26PM
Haines for President! He just said, "bitching".......get that man another martini.
Entry: Inability To Lie, Conceal Seen As Detrimental To Public Firms
posted by cheesedog
Oct 02, 2008 10:40AM
If you put your house on the market and nobody bids for 3 months, but some ass is in your driveway bidding $10, is your house really only worth $10? Obviously not. It aint worth what you paid for it. But it aint worth $10. MTM means you have to mark it at $10, and count the difference as a loss. The truth lies somewhere in between the $10 bid and the absurd amount you paid for it.
Entry: Harry Reid, Rumor Monger?
posted by cheesedog
Oct 02, 2008 11:44AM
Turn off CNBC for the next 48 hours. They are going to be plumbing new lows in journalism until this TARP garbage is in the rear-view mirror.
Entry: Afternoon Distraction: Caption Contest
posted by cheesedog
Oct 06, 2008 4:25PM
My imaginary friend, Horatio, who is sitting right here beside me, tells me to plead the 5th.
Entry: S&P Keeps Knocking Them Out Of The Park
posted by cheesedog
Oct 09, 2008 4:27PM
If a meteor struck the building that houses the rating agencies, the Dow would rally 1,000 pts.
Entry: Overheard At Morgan Stanley
posted by cheesedog
Oct 10, 2008 12:23PM
If W launched a Patriot missile into Moodys and S&P headquarters, I might vote Republican.
Entry: All That Glitters Is Not Goldman
posted by cheesedog
Oct 10, 2008 12:45PM
As of June 30, Goldman had their subprime exposure marked at 85 cents on the dollar. Merrill puked theirs at 22 cents. Hmmmmmmm.
Entry: Halloween Comes 10 Days Early This Year
posted by cheesedog
Oct 11, 2008 10:34PM
Lots of people who wrote protection on Lehman did not post a nickel of collateral. Monolines, DPCs and Synthetic CDOs. None of them post variation margin, and some dont even post initial margin. So please stop repeating what some clown who knows nothing of CDS says on CNBC. There are plenty of people scrounging for cash right now to settle this. Plenty. Luckily, prime brokers were smart enough to have variation margin on Hedge fund counterparties, or we would all be huddled around a nuclear campfire right now. Actually, "smart" would be giving prime brokers too much credit. Has anyone noticed how prime brokers are usually straight out of Sopranos central casting? I met with one that had 2 pinky rings. I couldnt listen to him. The whole meeting I just stared at his pinky rings in silent amazement.
Entry: Presented Without Comment: Uh Oh.
posted by cheesedog
Oct 14, 2008 2:32PM
60bp is insanely tight when you compare it to GECC at 450 over.
Entry: The End Is Near
posted by cheesedog
Oct 15, 2008 12:40PM
She could change her first name to Sarin, after the deadly gas they used in the Japanese subway. Post-wedding, she could be Sarin Gasparino. Who do you think squats more? I heard Sarin squats 450 free weights.
Entry: Write-Offs: 09.29.08
posted by cheesedog
Sep 29, 2008 10:29PM
I think we are going way lower. Bailout v2.0 probably wont come till Thursday at best. So now, we sit in an airpocket of mediocrity while our elected officials have a circle jerk. And by the way, v2.0 isnt going to solve the problem. If anything, it will be more compromised than 1.0, and the market will see through it. Nobody is going to sell into this dumbass program if they have to make good on any future losses. That would be locking in your downside while surrendering any upside. This thing is DOA. Get liquid, stay liquid. Gonna be a clearance sale on all risk assets.