Upside Down Mortgage

Posts Tagged ‘citigroup subprime losses’

Subprime Loss

Question: With all the major investment banks having write offs due to subprime exposure, how come no major hedge funds?

With all the major banks having write offs due to subprime exposure, how come no major hedge fund has gone bankrupt or at least reported major issues related to subprime exposure?

Are they hiding their losses off balance sheet for now and waiting till year end?

Answer: Due to Regulation Fair Disclosure (Enacted after Enron collapse) publicly traded companies have to have transparency in their books. That is what is killing the financials now as they are finding it difficult to put values on their packaged and bundled CDO's that they hold.
Hedge Funds don't have to report this information like the other companies do. They can list these assets on their balance sheets at their "value price" compared to the Banks which have to list them at market price.
Hope this helps.

My Loss Your Gain, Blame Game, Subprime Nightmares

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!

Citigroup Subprime

Question: How do I find out the stocks that Citigroup and other subprime lenders are invested in?

How would I narrow down which of these major companies would be invested in anything I was invested in so I could get out before they had to for cash to pay their own expenses?

Answer: Citigroup is an investment in themselves. Their worth to the investor is the amount of stocks on the market and that said price and what they have out and what they don't. Its very simple , you just need to log on to their site and get insight

Citi finds friend in Abu Dhabi

Subprime Losses

Question: What is "subprime mortgage exposure"?

It appears that companies and investment firms have had "subprime mortgage exposure".... as these companies lose money from that exposure and have these "write offs" or "write downs" they move their money out of the market in sometimes perfectly good investments to fund the fear into private investors to get them to sell out at a loss and buy back in to fund their loss protection, paying salaries and separation bonuses to those executives that they fault for the unethical practices. This is the way the "sub prime exposure" works its way to the private ethical investor.

What is the best way to fight back or join their monopolized hedging of the system?

Answer: The best two things you can do for yourself are:

1. Do not get involved. If you are borrowing for a real estate purchase, insist on a fixed-rate mortgage. Rates are very likely to be going up in a short while, and you don't want to be snared by the promise of low initial payments, only to have your payments bumped up big-time later.

2. Invest your money in areas that may benefit from the subprime mess. For example, as the Fed feeds the financial system right now to protect the banks, that's killing the dollar. As the world loses confidence in the dollar, gold has been going up. It will very likely continue to do so.

For some ideas about how to track what gold, oil, and the dollar are doing, check out the freebie articles that come out every Friday on this website: http://zealllc.com. I do not work for the company that produces that website or benefit from you reading it. I have learned a lot there, though.

Best of success.

General Motors drives into record loss