This a developing story. 31- year old junior trader Jerome Kerviel from Societe Generale is allegedly causing the global market meltdown that began on Jan 21, and hence the discount rate cut by our Uncle Ben here and George Bush Tax refund, to shore up the economy. So it's not the sub-prime mortgage market? It's totally the French guy. Anyway, I will take the $1,800 tax refund, thank you.
Thursday, January 24, 2008
French Responsible For Global Market Meltdown?
This a developing story. 31- year old junior trader Jerome Kerviel from Societe Generale is allegedly causing the global market meltdown that began on Jan 21, and hence the discount rate cut by our Uncle Ben here and George Bush Tax refund, to shore up the economy. So it's not the sub-prime mortgage market? It's totally the French guy. Anyway, I will take the $1,800 tax refund, thank you.
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New York City is falling apart .... Buildings are collapsing , the financial market is in a tailspin and the dollar is not the dollar it us...
then spend your USD1,800. With multiplier effect $1800 X 1/(1-MPC), it become 10 times in the global consumer market, all enable 1800 cheap mainland labor to spend for 1 week, then HSIX will going up again. BTW, I see Sharapova dressed in white in Australia Open, so charming....
ReplyDeleteIf you're watchful, this guy has a "serial killer" look!
ReplyDeleteBut you have to be a killer to be a trader, right?
ReplyDeleteDoes he? Or does he have the look of an accomplice or a scapegoat?
ReplyDeleteIt took Nick less than a year to lose Barings usd 1.4 billions. But it was ten years of hard work for a Janpanese copper trader to lose Sumitomo usd 1.8 billion. But that was THEN. Right now, the checks and balances are unbelievable in all the financial institutions. The sub-prime debacle is one thing. But it is quite another for such fraud to take place unnoticed for such a long time. There must be some other guys on the loose. Some very rich guys. It is interesting to note that no one told the Fed over the weekend. Then SG sold their positions, the markets crashed and Ben panicked. The greenback is over. The Fed has turned from a watchdog against inflation into a labrador puppy. Please bring back Volcker, Professor Kim's favourite.
Vl2008
I actually thought the French guy looked cute (and yes I can hear all the gagging noises in the background!)... But he would turn into just another fat bald guy with yellowing teeth like Nick Neeson did. I was SO shocked seeing the aging Nick Neeson on the telly commenting on the new rogue trader - he looks like a 60 year old, a right old geezer, as they say... and to think he was actually played by Ewan MacGregor in the film based on his autobiography! Thankfully Ewan is still as yummy as ever.
ReplyDeleteBtw, congrats on the sizeable tax refund - that's a great silver lining in all this talk of doom and gloom. Unfortunately the ECB here (European Central Bank) is still keen on inflation control and won't budge (not yet anyway) on cutting interest rates... oh well...
VL2008 is one hot guy too, you guys should meet. He's the one in the know while at best I just pretend to know.
ReplyDeleteThe story is still unfolding, and there is mounting political pressures for Societe Generale's senior executives to resign. And according to Kerviel's testimonial, he says, something to the extent that, there is no way his superiors were not aware of the huge amount he's committing given the huge profits generated from a small positions. In the past few years, there had been suicides in the equity and derivatives group, most likely job related.
The Fed is likely to cut rate again in this afternoon. The other central banks in Europe are likely to follow this time around.
Can't believe Nick has aged that fast! Come to think of it, when Xiu Lou was kicking ass in Xiao Li Yuen back in 1982, Nick was only a 15 year old kid kissing ass in Watford.
ReplyDeletevl2008