George Parr, investment banker

6 12 2007

George Parr, investment banker, gir sine betraktninger angående kreditt- og subprime-krisen. Bak disse festlige figurene står John Fortune og John Bird og selv om figuren bare er oppdiktet virker det å være tatt virkelig på kornet. I tillegg serveres det gullkorn på løpende bånd, gullkorn som med litt galgenhumor også kan knyttes til Terra-krisen:

George Parr om subprime-krisen:

«You have to remember two things about the markets. One is that they are made up of very sharp and sophisticated people, these are the greatest brains. And the second thing you have to remember, is that the financial markets, to use the common phrase, are driven by sentiment.

What does that mean?

What does that mean? Well, things, lets say, are just going along as normal in the market. And then, suddenly, out ot the blue, one of these very sharp and sophisticated people says «MY GOD, SOMETHING AWFUL IS GOING TO HAPPEN! WE LOST EVERYTHING! OH MY GOD, WHAT ARE WE GOING TO DO, WHAT ARE WE GOING TO DO?!? SHALL I JUMP OUT OF THE WINDOW? LET’S ALL JUMP OUT OF THE WINDOW! SELL, SELL, SELL! Precisely. And then, a few days later, this same, sophisticated person says ‘you know, I think things are going rather well’ and everybody else says ‘I agree with you, I think we’re rich.’ […] And that’s what we call market sentiment.»


«Market participants don’t know whether to buy on the rumour and sell on the news, do the opposite, do both, or do neither, depending on which way the wind is blowing.»


«Somehow, this packet of dodgy debts stops being a packet of dodgy debts and starts being what we call a structured investment vehicle.»


«This is the magic of the market. What started of as lending a few thousand dollars to an unemployed black man in a string vest has become a ‘high grade structured credit enhanced leverage fund.’ […] It sounds trustworthy.»


«Can [a financial meltdown] be avioded?

I can be avoided, provided that governments and central banks give us, the financial speculators, back the money that we’ve lost.

But, isn’t that revarding greed and stupidity?

No, no, it’s rewarding what the Prime Minister Gordon Brown calls ‘the ingenuity of the markets.'»


George Parr om kredittkrisen:

«It was entirely the fault of Mervyn King [den britiske sentralbanksjefen].»


«Well, I was just doing what everybody else is doing, that’s how we operate in the City.»


«That’s not silly, that’s the sophisticated market in operation.

You don’t think there is something fundamentally wrong with the banking system?

There are some very, very clever men in the City, and just as an example: the fact that Alliance and Leicester lost a third of it’s value in a day, and the very next day got a third of it’s value back, that shows that there’s something fundamentally sound and rational.»


«We went on the assuption that it would always go up.

Well, that’s not very sophisticated, is it?

It is, it’s as sophisticated as we’ll ever get.»


«Everytime you sell someone a financial product you put a big warning on it saying your investments may go down as well as go up.

Yes, well, we have to do that, it’s one of the petty fogging regulations. It’s only meant for ignorant punters.»


«I don’t know anything about tax, I never pay any. […] There’s nothing wrong with that, the City is far to valuable for the British economy. And in any case, as we keep saying, if you tax us, we’ll just go abroad. And that’s not an idle threat, we can go and wreck somebody else’s financial system.»


«Finally, can we talk about moral hazard? […]

Sorry, I know what hazard means, what’s the other word?»


«I’ve learnt one very important lesson. […] If you are going to make a cock-up, make sure it’ll be an enormous cock-up, because than the goverment will bail you out.»




2 responses

6 12 2007

Det verste er jo at det er sant.

21 12 2007

Vittig og veldig britisk. For utenforstående kan det jo ofte virke som finansmarkedene fungerer slik.

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