There is more than one way to skin a cat apparently (what a horrible saying, where does that come from?) Anyway, since banks have resisted all calls to mark the bad bonds on their books to market value over the past three years, traders have found an alternate way to penetrate the dark cloak of extend and pretend: they are shorting bank stocks as a way of shorting the over-valued bonds held on their balance sheets. Brilliant. This is likely to keep up pressure on the banksters to finally come through with some fair disclosure and transparency. Watch the CNBC clip here.
Eurobanks are the big story this morning as the Chinese are pulling back credit line commitments to French banks on worry about the junk bonds on their balance sheets. See Bank in Asia cuts credit to french lenders: “One bank in Asia has cut credit lines to major French lenders while five other banks in Asia are reviewing trades and counterparty risk as worries about the exposure of French banks to peripheral euro zone debt mounts, banking sources told Reuters on Thursday.”
The next wave of the financial crisis is now underway.
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This Game Is About Over
http://market-ticker.org/akcs-www?post=192007
I`ve got to the point that I can only listen to you Danielle (and one other analyst that I respect) because of all the bleepin white noise coming from the media. It`s too bad their comments and forecasts from the summer of 2008 can`t be replayed when they make their present comments. Thanks for sharing your thoughts on the casino (I mean markets). Have a good good!
About language – you’re quite right about “There’s more than one way to skin a cat” – sounds creepy and depraved. Quite likely to get animal lovers, feline lovers especially, bristling. That expression ought to be retired and replaced with something more neutral. As an example, how about: There’s more than one way to cook a potato.