really, really scary

Paul Krugmanのブログより:
So what should be done? I’m not sure (and I’m thinking about it, hard.) For now, I’d just say that this is really, really scary.

# by stupid-market | 2008-03-09 09:35 | Economy

Give me AAA, or otherwise go away

MBIA Inc., under threat of a downgrade, asked Fitch Ratings to stop issuing credit rankings on its insurance units, saying the grades have become less valuable to investors, of little use to the company and too expensive to maintain.

# by stupid-market | 2008-03-09 05:29 | Rating Agency


The Wall Street Journalより:
The government would fund these loans by issuing new two-year debt and rolling over the debt until the loans are fully repaid, thus eliminating any net cost to the government. The government loans would not add to the budget deficit or to the net debt of the nation. Gross government debt would rise by the amount of the new government lending, but this would be balanced by the asset value of those loans.

# by stupid-market | 2008-03-08 12:53 | Economy

Alpha or Beta

Research suggests that the correlation between hedge-fund returns and the S&P 500 index is already high and getting higher. Worse still, hedge funds are becoming more strongly correlated with each other.

# by stupid-market | 2008-03-07 13:17 | Hedge Fund


It is unclear how the markets changed for Peloton, but in a Feb. 28 letter to investors, it blamed its lenders for "severe" markdowns in the value of its assets, causing them to pull back on credit. The fund's assets were backed by four-to-five times leverage, or debt, in credit markets that have virtually stalled amid worries about further defaults.


# by stupid-market | 2008-03-07 09:09 | Hedge Fund