In 2008 the low interest to the consumer seemed built the American dream. Loans for low-risk borrowers were providing houses to American people and, of course, the trader’s fees make them rich. But the dark side of this dream was that Collateralised Debt Obligations (CDOs) (the repackaging of higher-risk mortgage loans known as a sub-prime loans with low-risk loans into products whose ratings were called Triple A status, lead the markets to a Ponzi scheme. Indeed, any analyst market had any idea what really was traded.
In the old days the banks would never have done this madness which was considered unethical. Nevertheless, in 2008 things had changed because of deregulation.
Guys, we are looking at an unprecedented meltdown here. I have never seen anything like it.
Keller Zabel’s loss today was the worst in over a year. And this big drop may be just the beginning of a much deeper correction… Keller stock is getting hammered.
How is it you’ve never been more wrong in your life that right now? You’re losing all your money right now. I see it, it’s going down. Somebody is betting big money that Zabel’s stock is about to collapse. You wanna owe? This stock is about to lose its bar-mitzvah. Take the haircut and sell. You’re on a 50% margin, buddy. I can still get you out at a total loss, but at least you won’t owe.
In one incredibly week, shares of KZI are down 52%.
Robby, listen to me. Keller Zabel’s been around a long time. All right? It is one of the great names in investment banking. A month, a year,.. it doesn’t matter. We’ll back to 65/70 and I’ll be fine. You just get hold it , okay?
You’re gonna owe, you know. Not just the buck, but the margin, too… Give me the okay to sell, buddy.
Some TV bubblehead , he gets up there like he knows something. He sells fear, panic. And morons, they love it. They want it to end because it sells. There’s no limits anymore.
Lou, I can help. I can get to the bottom of these derivatives.
No matter how bad this thing gets, we have real equity in this company.
There’s 15.000 jobs on the line right now. Somebody’s after us, right? Somebody’s trying to hurt us… Are we going under?.
© Images Money never Sleeps. Oliver Stone. 2010