Timmy Elsewhere

At The Business.

Hedgies can\’t get any new money. Hurrah, Success! And bank rights issues show that banks themselves think they are over-valued.

2 thoughts on “Timmy Elsewhere”

  1. Two possible problems with the “banks aren’t buying banks” line…

    It could be that banks are not buying because they have their own problems and have more important uses for the cash.

    More importantly, if banks’ investment decisions are worth copying, should I get myself a big pile of sub-prime mortgages?

    Tim adds: “should I get myself a big pile of sub-prime mortgages?” At current fire sale prices, quite possibly.

  2. it’s not the sub prime mortgages that are the problem, it’s all the credit notes that claimed to be AAA that are chock full of sub prime debt and all the people who were previously allowed to buy them now can’t, indeed have to sell them. An artificial product for which there is now no buyer. And the rights issues mean that the banks have been told to increase their equity base just like telcos did in 2002

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