Archived posting to the Leica Users Group, 2008/01/19
[Author Prev] [Author Next] [Thread Prev] [Thread Next] [Author Index] [Topic Index] [Home] [Search]The difference between Paulson and Goldman was that Goldman was originating these securities with one hand, with presumably rosy bullish projections, and simultaneously shorting the same type of securities with the other, reflecting a bearish view. Paulson did not do that. We dont know the final outcome, as nobody seems to have marked down the Level 3 securities completely as yet. Level 3 securities are those that do not trade at all, and therefore cannot be priced by the market, and therefore are priced according to the holder as he sees fit. Billions of dollars of bonus have been paid out of this fictitious income, therefore transferring the money from the shareholders pockets to the employee's pockets. Warren Buffett calls this as "Marking to Myth'. Cheers Jayanand On Jan 20, 2008 10:31 AM, Rei Shinozuka <shino@panix.com> wrote: > those are pretty typical levels for any of the broker-dealers like > ubs (where i work) or morgan or merrill--in an average year. problem > is they lost so much money in housing-related securities in 2007 > that it's hard to pay anybody. these companies have to get outside > investors to maintain regulatory capital. > > now hedge fund manager john paulson took a famous bet against u.s. housing > and PERSONALLY in 2007 earned an estimated 3-4 billion dollars. he's the > guy who is hiring greenspan as an advisor. goldman sachs also famously > bet against the housing market and stands pretty much alone among > investment banks to turn in huge profits. > > you win some, you lose some. > > -rei > > On Jan19 10:31, Frank Filippone wrote: > > Obviously you do not work for ( now I forget who, but it was a NYC > financial > > powerhouse) who just gave out yearly bonuses averaging $250K .......with > the > > big wigs getting upwards of several Mil. > > > > Frank Filippone > > red735i@earthlink.net > > > > > > - > > if and when > > bonuses return to the finance market. > > > > -rei > > -- > Rei Shinozuka shino@panix.com > Ridgewood, New Jersey > > > _______________________________________________ > Leica Users Group. > See http://leica-users.org/mailman/listinfo/lug for more information >