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Source:
Goldman Primed to Benefit from AIG’s Woes — Again, William Cohan Says
Yahoo Tech Ticker, Jul 02, 2009 10:28am EDT
Aaron Task
http://finance.yahoo.com/tech-ticker/article/273168/Goldman-Primed-to-Benefit-from-AIG%27s-Woes—-Again-William-Cohan-Says
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
Faced with the choice between changing one's mind and proving that there is no need to do so, almost everyone gets busy on the proof. —John Kenneth Galbraith
Knowing that the vote over the weekend in Greece was really a referendum on Euro membership, a majority of the Greek Parliament said yes to staying. European Finance Ministers meet again on Wednesday to solidify the 2nd bailout package for Greece at the same time hopefully a deal is consummated between Greece and its creditors this week. The Greek 14.5b euro bond that matures on March 20th is up by 2 pts. The optimism that all will be completed and contained AGAIN to Greece has yields lower in Portugal, Spain and Italy. The iTraxx Financial Index is also narrower by...
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July 3rd, 2009 at 8:35 pm
Don’t waste your time with this one.
July 4th, 2009 at 10:32 am
Although Cohen wrote an interesting book, you have to question his understanding of the market after reading the article. Credit default swaps aren’t flood insurance. There’s no secondary market for flood insurance after you buy it. Once you spend the premium, its gone. With credit default swaps, there’s daily two way liquidity in the over the counter market. If Goldman Sachs didn’t need the AIG credit protection anymore, it probably sold the credit default swaps back to the market to recoup some of the original costs. This appears to be an populist piece with a populist title that’s poorly researched if not ignorant. Shame on you for posting it. You should know better.