tag:blogger.com,1999:blog-9178156628590581532.post7405232776885659608..comments2023-10-22T08:30:21.144-07:00Comments on Clarity Financial Strategy- Daryl Ching: US Subprime Rate Freeze - CommentaryClarityFinancialStrategyhttp://www.blogger.com/profile/02761802095041404716noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-9178156628590581532.post-19226020846687077532007-12-07T07:32:00.000-08:002007-12-07T07:32:00.000-08:00Great comments Daryl. Here is a line I found in t...Great comments Daryl. Here is a line I found in the post that I enjoyed:<BR/><BR/>"Take this line from Bill Gross, managing director of Pacific Investment Management Co., or PIMCO, and one of the most respected market observers in the world:<BR/><BR/>"What we are witnessing is essentially the breakdown of our modern day banking system, a complex of levered lending so hard to understand that Fed Chairman Ben Bernanke required a face-to-face refresher course from hedge fund managers in mid-August," he said in his monthly note to clients. "<BR/><BR/>My comments:<BR/>As much as the central bank rate reductions and George bush's plan are meant to aid our current problems, they also represent a different message. Things must be so bad that the fed has to step in and save the day. What effect will this have medium term on the confidence of markets? I am thinking both in terms of the stock market and firms willing to take credit risk. This includes risk from banks lending to each other and to consumers through normal means as well as securitization vehicles.<BR/><BR/>John Sokic.John Sokichttps://www.blogger.com/profile/11206421857588949425noreply@blogger.com