The slide tries to explain the US financial crisis in nutshell. The direction of arrows shows the money flow.
Abbreviations:
MBS: Mortgage Based Securities
IB: Investment Bank
CDS: Credit Default Swaps
SIV: Special Investment Vehicle
EMI: Equated Monthly Installment
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If you purchased $1,000 of Delta Airlines stock 1 year ago, you would have $49 today.
If you purchased $1,000 of AIG stock 1 year ago, you would have $33 today.
If you purchased $1,000 of Lehman Brothers stock 1 year ago, you would have $0.0 today.
But, if you purchased $1,000 worth of beer [...]
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Posted in Fun, tagged Financial crisis, Quote on October 11, 2008 | 4 Comments »
A great quote on the current financial conditions, courtesy a foward by Priya Khanna:
There are two sides of a balance sheet: Left (Liabilities) and Right (Assets). These days, on the left, there is nothing right, on the right, there is nothing left
Cheers!
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Today a news popped up, the Mutual Fund market is going to collapse. MFs were always considered a safer bet for investment among all the high risk ones. The assumption is that there are people who are putting stakes to manage your investments. But, no longer true!
It’s not even a month before it all began. [...]
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I was looking at our blog’s stats and found a very strange search engine query that led to our blog - what does bankrupt country do. I read it, re-read it! Still clueless, I recollected a news item on TV that talked about Iceland’s financial crisis. The country fears it may go bankrupt.
Now, how would a [...]
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General Electric (GE) is a giant of a conglomerate and surprisingly at a time when most financial firms are crumbling, GE Money is still showing profits. But, sooner or later the cash dearth is going to catch up and to challenge it, GE plans to raise around $12bn in cash through the sale of stock.
It [...]
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I was astonished to read that the much hyped $700 billion bailout bill had been rejected by the US house of Representatives earlier this week. The ostensible reason for the defeat of the bill was: negative public opinion. Representatives were reluctant to have the lay American taxpayer bail out firms on Wall Street any more [...]
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