Wednesday, November 21, 2007

Welcome To The Shitpile

Man, this thing is really starting to smell up a storm. These morons gave their investors a money-back guarantee. Duncan sums it up for us (11.21.07):
"Basically the 'liquidity put' involved investment banks taking a piece of the shitpile, offloading it to someone, but then promising to buy it back at a given rate if it tanked in value.

Because of the Magic of Modern Accounting, they would do this to take bits of the shitpile off their books, even though it meant that the worst of the shitpile - the stuff which would tank - would inevitably return to their books in the future.

Liquidity Put

Liquidity puts and a bunch of other new words right here.

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