swensen
reminds him of 87, 98
wide spread crises, credit markets are broken
UK policy read and response was much better. US slow and discrete = per event and not a systematic strategy. article in wsj yesterday re bernanki, polson and their disputes = lack of confidence.
with goldman, TARP/polson, proposal was outrageous. CDOs are complicated to price. in his mind, gov’t equity infusions were right. at the right point in the cap structures.
lack of global cooperation, incredibly disappointing. lack of standard mechanism creates unfair advantages. in a time of need of confidence, moves created the opposite. in terms of TARP and coordination
next position?
interesting and difficult times.
firing mangers is essential. returns july/july 07: 28%, 08: 4-5%, double digit negative. liquidity! tough to generate.
everyone has better opportunities in front of them today, than 6 or 18 months ago. compelling opportunities in credit markets. ones without duration.
altria (philllip morris) t.+6%, and protection on debt is 1%. should be same. some debt is at 20% 3-4 years of maturity. banks is 60%.
how improbable is the economic armagaddon. nice fiscal stimulus. chinese, obama
looking for stability, or gov’t guarantee to move out of Tbills into market money funds. would like to see unlimited liabilities guarantee. govt needs to stimulate private and move out.
insurance mechanism rather than direct. charge for participation, penalty box for defaulting as a money manager.
banking lobby is strong. banks hate money market funds. that did makeit to the TARP bill. so banks will not let this happen. then, bill was filled with garbage. time-out from politics for one bill
Tags: confidence, policy
