Notes From Underground: Trader’s View On the Market (CNBC)

Click the image to watch me talk about Andrew Ross Sorkin’s piece on Glass-Steagall and where he gets it wrong.

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6 Responses to “Notes From Underground: Trader’s View On the Market (CNBC)”

  1. MattW Says:

    As always, another excellent, outside-the-box look at the macro issues and what is rarely discussed elsewhere – particularly distortions in risk-weighted capital costs. This is why I always look to this blog first among many. Keep it coming!
    I assume, time permitting, you’d have informed Andrew that were it not for imbalances in the system with GS repeal, the IB securitization/liquidity machine would have had trouble reaching the zenith it did and faciliating the downfall of the entities he references..

  2. Hank Moody Says:

    Thank you Yra!

  3. rohrintl Says:

    Hi Yra-
    Spot on as always. Saw this in real time this morning and loved it. Along with Glass-Steagal repeal, I suspect you’ll agree that the other leg of the toxic stool (take the connotation from that for what it’s worth) was the CFMA…

    …Only the US Congress under the influence of the securities firm lobbyists could possibly keep a straight face while allowing the purchase of Credit Default Swaps by folks who did not own the underlying bond. Classic cliche of allowing my neighbor to purchase, and be the beneficiary of, fire insurance on my house. What a bunch of fools.

  4. rohrintl Says:

    Also a great observation on the real cost of capital if banks that speculate lose access to deposit insurance. Brilliant… an instant and effective cure for TBTF. And along the way Sorkin sits there and clicks through all of the folks who were supposedly NOT the primary problem, yet were accomplices before the fact!! FNMA & FMAC were NOT a major part of the problem?? talk about perverting the effective cost of capital!!
    Best-
    Alan

  5. heater123 Says:

    Yra,
    You are a great intellect and need a bigger platform. Your insights are great. If only I could figure out how to take the truth and make money with it.

  6. Breakfast Links | Points and Figures Says:

    […] Traders view of the market. […]

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