PDA

View Full Version : What happens WHEN global liquidity dries up?



shootermcgavin7
06-11-2007, 02:35 AM
Either through some misstep in derivatives markets, rate hikes by Japan, etc.

This question is for budding Macro, Financial Econ, etc folk...given that some IBanks are leveraged up to 7-deep in some cases, how would you construct the scenario?

nasshi
06-11-2007, 02:38 AM
can you cite papers that suggest this is a question of interest? i'd like to read them, as i know little about the topic.

futurefinancier
06-11-2007, 03:13 AM
Ltcm?

shootermcgavin7
06-11-2007, 03:32 AM
As much as I love math-play, I'm more interested in macroeconomic intuition....which I'm assuming everyone here was well-versed in by the time they were 19.

EconChump
06-11-2007, 06:03 PM
read stephen li jen of morgan stanley. he is the shizzel.

shootermcgavin7
06-13-2007, 05:11 AM
Figure 8 according to the OP judge of this thread is intuitive reasoning.


I didn't mean to sound pretentious....just curious as to what people thought. I'm certainly not claiming to be qualified to arbitrarily "judge" answers to this thread.


Creative, to your earlier point, I'm not saying it will happen next week. But rates are going to rise, globally, at some point.



Ltcm?


lol. Touche. I better pull my money out of countries who have no intention on repaying.

shootermcgavin7
11-27-2007, 07:20 PM
given that some IBanks are leveraged up to 7-deep in some cases, how would you construct the scenario?


I have to admit; I didn't expect it to happen as soon as August (two months after I created this thread).


But I guess the economy is answering my question currently.

butler blue
11-29-2007, 04:09 AM
I have to admit; I didn't expect it to happen as soon as August (two months after I created this thread).


But I guess the economy is answering my question currently.
I suppose the answer so far is: Lots of CEO's of big banks get pink slips.

shootermcgavin7
11-29-2007, 04:40 AM
I suppose the answer so far is: Lots of CEO's of big banks get pink slips.



And Citigroup needs half a billion from a Saudi prince to stay solvent