Citigroup Stops Withdrawals from Hedge Fund

cnbc ^ | Feb 15, 2008 | None Given

[djf]

Can not post to much info...

You some kinda insider? Work on the street?

I don’t even have a bank account, so what little I have is totally liquid. Never trusted the paper pushers.

[dennisw]

Many thanks for the information. You obviously know a lot more than I do about the bond markets. Thanks

Isn’t part of the problem that more foreign money used to be there to buy up these munis & bonds? Aren’t Europeans and others pissed off at being burned by US CMOs they bought that were highly rated? So staying away?

[Cringing Negativism Network]

Seems a lot like Enron.

Just saying...

[djf]

Except it’s probably 5,000 times bigger.

I kid you not.

[Freedom_Is_Not_Free]

So how do you fix a liquidity crisis, besides let it run its course? Are cuts to the Feds rate going to have any useful effect?

[rb22982]

M1 + M2

I'm still showing M2 is increasing as of January. Still scary about the AAA paper failing.

[theBuckwheat]

I am very familiar with a Rydex FOF hedge fund that went bust a few years ago. Now Rydex is no slouch either. IMO, it is is in the same top tier of companies that Citi is in. Happily, Rydex later made the fund partners whole.

What is entirely missing in this silly handwinging is any mention of fund style. A company may sponsor a number of hedge funds, each with its own manager and own each with its own "play" or skill at finding value.

Indeed, one firm maintains and publishes formal indexes of the performance of various styles of hedge funds. The monthly performance can be seen at:

https://www.hedgefundresearch.com/hfrx

The indexes are: HFRX Convertible Arbitrage Index, HFRX Distressed Securities Index, HFRX Equity Hedge Index, HFRX Equity Market Neutral Index, HFRX Event Driven Index, HFRX Macro Index, HFRX Merger Arbitrage Index, and HFRX Relative Value Arbitrage Index

[spanalot]

You Cant Go Wrong with The Posturepedic National Bank.

[TomasUSMC]

GREAT QUOTES!

[Travis McGee]

Try these next:

"I cannot help but raise a dissenting voice to statements that we are living in a fool's paradise, and that prosperity in this country must necessarily diminish and recede in the near future."

~~E. H. H. Simmons, President, New York Stock Exchange, January 12, 1928

"Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such as (bears) have predicted. I expect to see the stock market a good deal higher within a few months."

~~Irving Fisher PhD, leading U.S. economist , New York Times, October 17, 1929

"If recession should threaten serious consequences for business (as is not indicated at present) there is little doubt that the Federal Reserve System would take steps to ease the money market and so check the movement."

~~Harvard Economic Society, October 19, 1929

"This is the time to buy stocks. This is the time to recall the words of the late J. P. Morgan... that any man who is bearish on America will go broke. Within a few days there is likely to be a bear panic rather than a bull panic. Many of the low prices as a result of this hysterical selling are not likely to be reached again in many years."

~~R. W. McNeel, market analyst, as quoted in the New York Herald Tribune, October 30, 1929

“Several brokerage houses tumbled; blue-sky investment companies formed during the happy bull market days went to smash, disclosing miserable tales of rascality; over a thousand banks caved in during 1930, as a result of marking down both of real estate and of securities; and in December occurred the largest bank failure in American financial history, the fall of the ill-named Bank of the United States in New York.”

~~"Only Yesterday: An Informal History of the 1920’s" by Fredrick Lewis Allen

"There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

~~Ludwig von Mises

[BQ91]

Update to were the liquidity crisis started

As you can see we are now 3 weeks into this and AAA 7 Day paper is still not liquid, also neither are any Collateralized Paper of ant sort really. Muni Markets are hard to Trade, with only the Treasury Market totally liquid. WE now face a serious crisis, 1932 event, very serious problem. Rate cuts by the FED are not going to work, the FED this week must start buying or Borrowing paper at the discount window to get the Paper and markets liquid, or by Good Friday, more Firms will fail like Bear Stearns did. May greatest fear for the US would be if Citigroup were to fail. I think Lehman, Citigroup, Wachovia, are in worst shape. JP Morgan, Goldman, Merrill are in the best Shape.