Wednesday, November 28, 2007

Thanks, But No Thanks....

One of the more trenchant observations to come out of the subprime debacle so far. Via Bloomberg:
Former Federal Reserve Chairman Alan Greenspan is among critics who say SuperSIV may do more harm than good by delaying the need for investors and SIVs to absorb subprime losses.

Loomis Sayles & Co. declined to invest after receiving one of 16 invitations for a meeting earlier this month with current Fed Chairman Ben Bernanke, said Daniel Fuss, who oversees $22 billion as chief investment officer at the Boston-based firm. The Securities Industries Financial Markets Association trade group extended the invitations, Fuss said.

The meeting was a general session initiated by the trade group to discuss current market developments and led to "some very candid give-and-take," said Richard Hunt, SIFMA's senior managing director for government relations. Spokeswoman Michelle Smith at the Federal Reserve confirmed the meeting took place.

"It's so nice to get a personal invitation to go to Washington and have a one-hour visit with Ben Bernanke," said Fuss, who decided participating wasn't worth the risk to his firm. "Oh, boy, did I feel important for about 27 seconds, and then you smell a rat."

2 Comments:

Blogger Bogden said...

You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.
Abraham Lincoln

Love the blog.

11/28/2007 10:05 AM  
Blogger Jen Clark said...

This got no coverage anywhere (literally), but when Ben Bernacke testified in front of the House, he actually argued that the further decline of the dollar would be a good thing for our country, saying that it would increase our exports.

I don't know about you, but I have no interest living in the next sweatshop to the world.

Our money is in very dangerous hands.

(I transcribed the part of the hearing where Ben Bernacke said this while being questioned by Ron Paul over at Little Country Lost. It can be found under the title "Straight Talk About the Dollar Crisis"

12/01/2007 9:27 PM  

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