The Pimco comment is consistent with one of the folks who were short in the Big ShortReader comment on: Pimco Before the FCIC Submitted by Lyle (United States), May 6, 2010 17:58 One of the guys buy cds's on the AA CDO's wondered if the government would step in and save the whole mess as it was too big. That was apparently his major concern of how he could lose. Of course the Fannie/Freddie shareholders and preferred shareholders did take a bath on the deal. For common stockholders an 80% dilution was imposed. Partly this comment is a reflection on how much Andrew Mellon is now disgraced, partly because of concerns about domestic political stability. I wonder for example how long until the Greek government falls and a new election does for Greece what happend in Iceland, and the people tell the financiers they can go to a very warm place with lots of fire. Note: Comments are moderated by the editor and are subject to editing. Comment on this item |
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