Comments on: The Big Short http://blogs.reuters.com/felix-salmon/2010/03/15/the-big-short/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: electronic cigarette http://blogs.reuters.com/felix-salmon/2010/03/15/the-big-short/comment-page-1/#comment-52998 Sat, 27 Sep 2014 17:16:18 +0000 http://blogs.reuters.com/felix-salmon/?p=2958#comment-52998 Kimree is a world-leading e-cigarette company. According to Frost & Sullivan, Kimree was the second largest e-cigarette designer and manufacturer in the world in terms of both revenues and production volume in 2013. The Company designs and produces a broad range of e-cigarette products, including disposable e-cigarettes, rechargeable e-cigarettes and e-cigarette accessories. Visit http://www.kimree.com/ for more.

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By: mirv http://blogs.reuters.com/felix-salmon/2010/03/15/the-big-short/comment-page-1/#comment-14149 Wed, 28 Apr 2010 13:30:29 +0000 http://blogs.reuters.com/felix-salmon/?p=2958#comment-14149 I’m about a third of the way through “TBS” and I have to say I’m nearly as angry as I was after 9/11. It’s clear there’s a huge gap between the average intelligent person and Wall Street. I could sense it while watching the committee hearings with Goldman Sachs yesterday. The people who defend these kind of instruments can’t possibly understand how ridiculous this appears to an intelligent person on the outside. There’s a danger: understanding something, or at least thinking you do, becomes the rationalization for it’s existence. It’s payday someday, folks. This is such a joke that people are actually rationalizing the existence of a market that existed only on the back of one that should have never existed because “that’s the way it works.” Shame on this country.

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By: hathman65 http://blogs.reuters.com/felix-salmon/2010/03/15/the-big-short/comment-page-1/#comment-13428 Tue, 13 Apr 2010 19:16:53 +0000 http://blogs.reuters.com/felix-salmon/?p=2958#comment-13428 What these guys did to screw the financial system is unbelievable.

I just finished listening to the audio version of The Big Short which really brought the story to life. Truly unbelievable.

Here’s the link to the audio.

http://www.castlibrary.com/audio_books/b ig-short-doomsday-machine-unabridged

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By: AsianCrisis http://blogs.reuters.com/felix-salmon/2010/03/15/the-big-short/comment-page-1/#comment-13252 Wed, 07 Apr 2010 21:45:11 +0000 http://blogs.reuters.com/felix-salmon/?p=2958#comment-13252 http://chedet.co.cc/chedetblog/2010/01/t he-hedge-funds-1.html#more

11. Whether we consider the investment through the hedge fund is good or bad depends on us. If we don’t mind the collapse of the financial institutions then it is good. But most people regard the current financial meltdown as bad.

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By: zenladen http://blogs.reuters.com/felix-salmon/2010/03/15/the-big-short/comment-page-1/#comment-12739 Wed, 17 Mar 2010 17:18:02 +0000 http://blogs.reuters.com/felix-salmon/?p=2958#comment-12739 I disagree that “shorts” are the cause of the problem.
To the contrary ! Shorts are the only way of telling the market that there is something wrong with the way things are going. “Shorts” keep the market honest. The market is going to go “down” regardless of shorts. Shorts just let you know ahead of time and not be off guard. Of course, you have to be smart enough to even know a short exist. Perhaps the ones on this blog critizing the shorts as the cause of the the current economic crisis , are not savvey enough to understand the role of “shorts”

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By: Sandrew http://blogs.reuters.com/felix-salmon/2010/03/15/the-big-short/comment-page-1/#comment-12713 Tue, 16 Mar 2010 17:53:07 +0000 http://blogs.reuters.com/felix-salmon/?p=2958#comment-12713 You see the tulip farmers as enablers and shout. I see the same and shrug. I suppose we agree on the facts but disagree on the appropriate response. Ain’t the first time.

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By: Greycap http://blogs.reuters.com/felix-salmon/2010/03/15/the-big-short/comment-page-1/#comment-12711 Tue, 16 Mar 2010 15:52:14 +0000 http://blogs.reuters.com/felix-salmon/?p=2958#comment-12711 “Of course the shorts propped up the bubble in CDOs, since without them there wouldn’t have *been* all those synthetic CDOs, and you can’t have a bubble in a product which doesn’t exist.”

That is putting the cart before the horse: it was the market for CDO tranches that propped up the synthetics, and not the other way around. Of course, in principle there would have been less financial damage to investors and banks if synthetics had not existed. But the cash CDO market was always substantially bigger than the synthetic and made for quite enough bubble to constitute a disaster.

Furthermore, there is an important point that is eluding you: the demand for cash CDOs pushed back on the underlying housing market in a way that side-bets like synthetics could not. Nobody ever cold-called property owners to refinance, encouraged liar loans, or bid over par for mortgages on the back of a synthetic CDO. It was these things that forced up housing prices and so spread the damage to property owners who had never heard of a sub-prime mortgage.

In light of the underlying market distortions produced by the demand transference of cash CDOs, it is absurdly tendentious to claim that the cash market was somehow “validated” or “propped up” by synthetics. It was quite strong enough on its own.

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By: Felix Salmon http://blogs.reuters.com/felix-salmon/2010/03/15/the-big-short/comment-page-1/#comment-12709 Tue, 16 Mar 2010 13:56:07 +0000 http://blogs.reuters.com/felix-salmon/?p=2958#comment-12709 Sandrew, in the simplest sense, of course the shorts propped up the bubble in CDOs, since without them there wouldn’t have *been* all those synthetic CDOs, and you can’t have a bubble in a product which doesn’t exist. As a result, lots of investors in subprime synthetic CDOs lost a lot of money, as did the banks who failed to properly fund the super-senior tranches. Yes, there were equal and opposite profits on the short side. But there was still a bubble, and there were still big losses when it burst.

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By: Greycap http://blogs.reuters.com/felix-salmon/2010/03/15/the-big-short/comment-page-1/#comment-12707 Tue, 16 Mar 2010 12:48:54 +0000 http://blogs.reuters.com/felix-salmon/?p=2958#comment-12707 Felix says “But it’s true that the shorts weren’t the biggest problem. It’s just that they didn’t help, in terms of popping bubbles, in the way that shorts often can.”

I cannot improve on Sandrew’s sensible response to this irrelevant defense of a most unlikely claim. Felix, it is your own fault that your position is untenable. You should just cut your losses, admit you are wrong, and move on.

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