Single Post Display - MarketTicker Forums


	Detailed market commentary at The Market Ticker and Ticker Classics (The Year 2011 In Review) Donations accepted; we offer GOLD ACCESS for enhanced privileges. T-Shirts, caps, coffee mugs? Click here. BlogTalkRadio - Mondays at 3:30 Central - Yes, TickerGuy has a radio show (kinda) RSS available

MarketTicker Forums Single Post Display (Show in context)

User: Not logged on

User Info

Etrade only received 11 cents on the dollar!; entered at 2007-12-02 15:21:48

Gmak
Posts: 10179
Registered: 2007-07-27 Re-inventing the future at the speed of time.

What's interesting in all this is Griffin being touted as the smartest man in the room (head of Citadel). There is no doubt that he is hard-working, demanding, very smart and able to apply it, and rich from his own efforts in financial endeavors.

What is often overlooked, and embodied in the first line in the quote below, is that his entire investment career has been spent under one umbrella. That of ever increasing and ample liquidity and credit availability with a systemic decline in real interest rates that transcends decades.

How will this experience translate into gains within the present and evolving economic environment? (emphasis added below)

http://online.wsj.com/article/SB11963861....

Quote:

Citadel's Mr. Griffin, 39 years old, is confident the worst scenarios are already priced into the securities of a number of financial companies. That view extends to a $3 billion portfolio of E*Trade's mortgages and other securities, which Citadel now has agreed to buy from E*Trade for $800 million. Citadel also is injecting $1.75 billion into E*Trade, in exchange for 10-year E*Trade notes that pay it 12.5% interest and shares boosting its stake to almost 20% of E*Trade's stock outstanding.

"The market is pricing assets like things are going to get really bad," Mr. Griffin said in an interview. "But the more likely outcome is for the economy to slow for two or three quarters, and then strengthen." The investment in E*Trade is the highest-profile move in Citadel's history, representing about 2.5% of the hedge fund's overall investment portfolio.

Last modified: 2007-12-02 16:13:30 by gmak

2007-12-02 15:21:48