Chillin' out till it needs to be funded
From 2008, when Lehman keeled over despite the great show in financial resuts and tying up financing, my friends with a not so intelligent non finance background were full of glee and caprice at the unexpected holiday. I’d like to think they still pester me and other ‘Finance types’ being held responsible for their generally tougher path in life and their rare (and random) capabilities to understand the few things going down, but that can’t be proved because none of them write..and i doubt if they read much either.
Here’s what’s going down despite all the hair raising antics by Fed chairmen, Greenspan, Greenberg and Warren Buffet:
Citi is trying to or for brevity, Citi’s Selling its Car Loan portfolio, JPM’s admitting to buying India and selling China, and earning from the spread ( This is Adrian Mowat, Chief Asia specialist on Indian TV, one of their fine MDs in the region). China’s building two dozen District Centers or to put it in Western terms CBDs that will change each city cluster’s economic landscape but there are limits on Loans available, India’s clamped down on RE loans as well, but just with a market facing extra provision for banks even as $1T lies locked up in cash in the banking system and GDP projections are running amuck, up to an ‘optimistic’ 7.2%, when we still think 8,5% looks likely in two months from now, Credit is on hold and Auto sector results have started catching up frenetically with China’s 10 times higher but eye opening 4 wheeler sales from 2009.
To return to that Global Arena, John Thain seems to be getting some management votes, even as Vikram Pandit’s team lays low, unable to sell a tiny $3 billion Car loans portfolio because now counter-parties are demanding that elusive security in terms of future cash flows..I always thought that was an unneeded additional layer as long as the loans had been underwritten, but we all know about banks’ selective underwriting memes that change with the pens in the communal pen stand. February is also going to be a rich off-take for European Banks despite the out of sight is out of mind economies of the fringe in Portugal, Spain, Greece, Ireland and Italy..Virgin chairman hasn’t probably got much time for his tete a tete with regulators for a Virgin Bank and the Competition Commission from Brussels has been awfully quiet. Retail Inflation is taking its toll on the other sets of statistics governments print and most officials heave a sigh of relief as people stop registering those numbers again well before the budget documents are tabled.
The Private Banks sold in Asia are going on as if nothing has changed and the Dollar is standing on a tiny triumphant anthill on its lat legs. Sorry, I don’t mean it as a pun for the US or any of its citizens, Dollar remains a global currency of choice but, it is unlikely to be too strong the rest of February..Results season, then the Superbowl and now the IPL and the Economic juggling of the US, the Indian and the many other important budgets is going to keep us buried from here, so just write us a note when you think you need anything and don’t be like those who prompted me to write this adjunct piece of merry go round analysis to start the week. Have fun riding the bulls. And I doubt if this Tea Party will ever grow to govern that great nation. No Palin for you guys in 2012, sorry..