Felix TV: The triple-A bond chart

By Felix Salmon
July 22, 2011
triple-A bond chart, but I did manage to blow it up to six feet tall and do my best weatherman impression in front of it at the Nasdaq Marketsite in Times Square.

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I still haven’t been able to get an updated version of the triple-A bond chart, but I did manage to blow it up to six feet tall and do my best weatherman impression in front of it at the Nasdaq Marketsite in Times Square.

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Comments
8 comments so far

Very educational video discussing the financial facade and the fallout from thinking that AAA bonds out there could possibly be “no risk.”

Your hand movements are getting more to the point (except the one where you make your self bigger in the scary monster hands above your head pose) and were fitting the video.

Posted by hsvkitty | Report as abusive

I always love Felix’s videos (specifically because of his wild gesticulations, which funnily enough didn’t appear too much of in his recent BHTV), but what’s with all the flash cuts and shaky camera effects?

Are we watching a middle aged dude standing in front of some monitors at NASDAQ or a Paul Greengrass Jason Bourne movie?

But to the matter at hand, isn’t this chart yet another nail in the coffin to the notion that the rating’s agencies are pure shite?

Posted by GregHao | Report as abusive

I always love Felix’s videos (specifically because of his wild gesticulations, which funnily enough didn’t appear too much of in his recent BHTV), but what’s with all the flash cuts and shaky camera effects?

Are we watching a middle aged dude standing in front of some monitors at NASDAQ or a Paul Greengrass Jason Bourne movie?

But to the matter at hand, isn’t this chart yet another nail in the coffin to the notion that the ratings agencies are pure shite?

Posted by GregHao | Report as abusive

Love you Felix, but you’re off-base on your conclusion about the 2009 numbers. I was one of those “Felix Salmon smackdown” writers adding my chorus to what Yves Smith said about your post… although I think my post is more salient.

Posted by Sprizouse | Report as abusive

AAA does not mean risk free. Furthermore nobody at this time assumes the debt is risk free either. AAA is a label the government permits rating agencies to post on debt that permits zero risk based weighting. The damage caused by a down grade is the result of all the capital banks must now put up against that dodgy downgraded debt.

Posted by Sechel | Report as abusive

i find felix tv interesting and very educational. i think it would be great f it would be available at online tv such as tvhod so that more people can see it.

Posted by cathy01 | Report as abusive

hey Felix,

Love this one, and your big point — the amount and proportion of AAA on the market is both ridiculous scary — is great. But you go straight from “we had all these bubble-era ABS, and they blew up” to “and now we have all this sovereign debt.” Somebody should make the point that much of the new sovereign debt represents the public either taking on the private debt or otherwise dealing with the consequences of the earlier implosion. So allow me.

Posted by DeanStarkman | Report as abusive

I agree with Starkman. To me the interesting question will be when the bond holders figure out that when the government needs 5 or 6% inflation, what will happen.

Posted by fresnodan | Report as abusive
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