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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (28132)	1/22/2008 4:43:57 AM
From: TobagoJack	Read Replies (2) \| Respond to of 218030

just in e-mail in-tray I suspect that there were massive margin calls today. Not sure if there will be more tomorrow or not. Here in Hong Kong, the most popular product for Private Banks in the past 6 months appear to be "accumulators." Basically, the client wrote puts about 15-20% out of the money in order to generate high yield notes, with the caveat that: 1 - best case is that you receive a 12% yield over 6 months or some such nonsense. 2 - worst case is that you buy the shares on the underlying "cheap," at a price 15-20% below "today's" (say Oct. 2007) price. But of course these products were leveraged and I suspect margin calls have been coming fast and furious! Needless to say, I bet that there are a large number of clients deeply unhappy with their private bankers today! And the Private Bankers are probably deaf from the shouting from their clients and hoarse from shouting at their traders.... Apologies to Edwin Starr: Bankers! - huh- yeah- What are they good for? Absolutely nothing Uh-huh Bankers! huh yeah- What are they good for? Absolutely nothing Say it again y'all Bankers! huh good God What are they good for? Absolutely nothing Listen to me Ohhh Bankers! I despise Because it means destruction' Of innocent lives Bankers means tears to thousands of clients eyes When their money goes to fight and lose their lives.... UNQUOTE