The Complexity of Common Sense
Since all I keep hearing about are CDOs and follow GS closely, the collapse of the bond market it is obviously been on my mind (and on most of the minds on Wall Street). I keep reading articles suggesting the bond problem will get worse before it gets better because of the recent blow ups, but in the same articles and the same breath of bashing the ‘toxic waste’ investment vehicles, the mention of ample liquidity remains.
Ahhh, ample liquidity, here in lies a solution.
So because a few CDOs investment strategies went wrong we are left to assume new CDOs will not be touched despite the thirst for this liquidity to find a home. Where will this excess liquidity go? Will the managers of this liquidity force change to accomidate their need for transperancy?
Who am I, a lonely dumbass blogger, to argue with the likes of Bill Gross, Carl Icahn, John Thain and countless other media articles. These people know the markets and CDOs far better than I do. I do not argue that with the CDOs currently out there, there should be a nervousness, as Goldman’s CEO stated. But I also believe the people on Wall Street are extremely smart and will work through this problem to allow the current liquidity to find a home. How they solve it I leave up to those who know the process far better than I. But for market sake, those buying these vehicle most take responsibility too.
Or maybe I am using to much common sense… or simply naive stupidity.
