European Tribune - Comments

CDO Paradiso | 23 comments (23 topical, editorial, 0 hidden)

Frankly I do not see the banks getting load of cash with the redemption of CDO : if that happens it will be because the Companies are bankrupt and therefore are unable to repay their liabilities to the banks.

I doubt the CDO will compensate for the write-off.

by fredouil (fredouil@gmailgmailgmail.com) on Wed Nov 19th, 2008 at 12:55:39 PM EST

Re: CDO Paradiso (none / 0)

and by the way, the trillions of $ to be repaid in case of massive redemption of CDOs, do not exist, banks will never see the cash.

by fredouil (fredouil@gmailgmailgmail.com) on Wed Nov 19th, 2008 at 12:59:13 PM EST
[ Parent ]

Re: CDO Paradiso (none / 0)

Agreed. The cash goes away in the crash. But they might take over the resources left.

I think it was the crash in the railroad sector in Germany (late 19th century) that made the banks huge industrial owners for a long time. And I know that the Krueger crash made the banking family Wallenberg industrial barons of Sweden.

And I do not think that in any of those cases they had a political class willing to give them lots of taxpayer money to buy up the real economy.

A vote for PES is a vote for EPP! A vote for EPP is a vote for PES! Support the coalition, vote EPP-PES in 2009!

by A swedish kind of death on Thu Nov 20th, 2008 at 12:42:04 AM EST
[ Parent ]

Exactly. (none / 0)

Asset deflation means that $ liquidity (Goldman Sachs, Morgan Chase, China, Saudi Arabia, etc.) goes further and further. All of this 'wealth'-transfer via the price inflation of the last few years, plus the current give-aways, has concentrated US$. Now the bursting of the bubble(s) clears the way for massive asset transfer.

paul spencer

by paul spencer (spencerinthegorge AT yahoo DOT com) on Thu Nov 20th, 2008 at 12:34:00 PM EST
[ Parent ]

Re: CDO Paradiso (none / 0)

See Pierre's comment above.

by afew (afew(a in a circle)eurotrib_dot_com) on Thu Nov 20th, 2008 at 02:04:01 AM EST
[ Parent ]

CDO Paradiso | 23 comments (23 topical, 0 editorial, 0 hidden)

. Home
. About
. Contact
. New User Guide
. FAQ
. ET Editorial Guidelines
. Search
. Search (Google)

Username:
Password:

. Make a new account
. Reset password

Recommended Diaries

Clipping the wings of a judge
by Migeru - Feb 10
34 comments

Sarkozy: Enemies Ahoy!
by afew - Feb 10
20 comments

Hunger March wins PR battle
by DoDo - Feb 9
3 comments

Romania: protests change government
by DoDo - Feb 8
6 comments

Murdoch - Outsourcing and Hubris
by ceebs - Feb 3
18 comments

Obama wins GOP Primaries (to date)
by Frank Schnittger - Feb 8
9 comments

LQD: Unsustainable irrigation
by Melanchthon - Feb 9

Bristol Pound
by ChrisCook - Feb 7
14 comments

Recent Diaries

Sarkozy: Enemies Ahoy!
by afew - Feb 10
20 comments

Clipping the wings of a judge
by Migeru - Feb 10
34 comments

LQD: Unsustainable irrigation
by Melanchthon - Feb 9

Hunger March wins PR battle
by DoDo - Feb 9
3 comments

Obama wins GOP Primaries (to date)
by Frank Schnittger - Feb 8
9 comments

Romania: protests change government
by DoDo - Feb 8
6 comments

Answers to the Renewable Energy Consultation
by Luis de Sousa - Feb 7

Bristol Pound
by ChrisCook - Feb 7
14 comments

The Imitation Of Germany
by afew - Feb 4
31 comments

Strange Fruit
by Frank Schnittger - Feb 4
14 comments

Murdoch - Outsourcing and Hubris
by ceebs - Feb 3
18 comments

Mismatch with the Natural Gas Market
by Luis de Sousa - Feb 3
22 comments

The Future of Economics
by ARGeezer - Feb 2
191 comments

Desert Island Discs - Helen's distortions
by Helen - Jan 31
48 comments

Gorila
by DoDo - Jan 29
14 comments

Rail News Blogging #7
by DoDo - Jan 29
15 comments

Obama's State Of The Union: LQD
by Crazy Horse - Jan 25
74 comments

Democracy Technology
by gmoke - Jan 24
1 comment

The Hydrogen dream
by Luis de Sousa - Jan 24
49 comments

ET Paris Meet-Up 2012 (2 UPDATE)
by afew - Jan 23
113 comments

More Diaries...

Occasional Series

Click for full list