"Shitty Deal" - Democratic Underground

MrScorpio

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Tue Apr-27-10 06:30 PM
Original message

"Shitty Deal"

That's a technical Wall Street term.

It's defined as business as usual.

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Mike 03

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Tue Apr-27-10 06:33 PM
Response to Original message

1. Business as usual is that there is demand for being on the buying end of a shitty deal.

It happens every day. I am amazed that people have no clue how the investment world works.

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bridgit

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Tue Apr-27-10 06:35 PM
Response to Original message

2. Levin missed a golden opportunity to be more like Cheney and tell them to...

"Go 'shitty deal' yourself!"

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Mike 03

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Tue Apr-27-10 06:38 PM
Response to Original message

3. I am invested in shitty deals. The topic today had to do with risk vs. reward.

Goldman's customers are not moronic shills, they are sophisticated investors.

As much as I respect attempts to X-ray the financial crisis and explain it, these hearings are nothing more than an embarrassing circus.

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KILL THE WISE ONE

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Tue Apr-27-10 06:46 PM
Response to Reply #3

7. YOUR MISSING THE POINT

These types of "asset backed securities" made it into what was sold to 401K owners as a part of what was usually labeled a stable fund.

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ljm2002

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Tue Apr-27-10 07:15 PM
Response to Reply #3

9. Even sophisticated investors...

...have a right to expect that a rating of AAA means "solid investment". It is supposed to indicate that highly skilled professionals employed by the ratings agency have given their honest assessment of how an instrument should be rated. Remember -- up to 90% of one of these deals (I think it was ABACUS) FAILED since it was first put together. Yet it was rated AAA. Riigghhtt...

These ratings are supposed to mean something. I've said it before and I'll say it again: the watchword of the financial crisis is F_R_A_U_D.

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spanone

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Tue Apr-27-10 06:39 PM
Response to Original message

4. it's what you and i receive if we do business with goldman sucks

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Mike 03

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Tue Apr-27-10 06:41 PM
Response to Reply #4

5. Yeah, you definitely sound like a GS client. NT

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customerserviceguy

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Tue Apr-27-10 06:42 PM
Response to Reply #4

6. You could say that about any stock brokerage firm

They're all in it to play churn and burn with the client's money. I make my picks myself, and I never toss in any more money than I'm willing to lose on a Super Bowl betting pool when I buy stuff at Sharebuilders. The nice thing about them is that they never call you up to try to sell you crap.

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Mike 03

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Tue Apr-27-10 06:46 PM
Response to Reply #6

8. Thank you for your common sense and personal responsibility.

At some point, certain risks--like CDOs, MBS, ridiculous leverage, CMBS, CDS--became so overt that there was no sensible choice but to short or at least divest of these toxic instruments.

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