Global market risks, temporarily hidden by cheap credit, have now reasserted themselves with a vengeance. With many AAA rated bonds now suddenly worthless, buyers of Wall Street’s now suspect wares have deserted the credit markets in droves. The rush for returns has been replaced by a rush to safety, reflecting the sentiment penned by the 19th century humorist Mark Twain:
I am more concerned about the return of my money than the return on my money.
Risk is back and no matter how often the playground supervisor tries to reassure us, we know the playground is no longer safe. Even the big kids are getting hurt. The fat kid’s back and so is the whiff of deflation.
RISK IS IN THE HOUSE
LIBOR’s getting high
As central bankers try
To calm the markets down
But risk is back in town
Risk is in the house YO!
Risk is in the house
Credit lines are drawn
Where’s the money gone
Spreads are growing fast
Markets sucking gas
Risk is in the house YO!
Risk is in the house
Triple A means squat
Commercial paper rots
Monolines are down
‘Cause risk is back in town
Risk is in the house YO!
Risk is in the house
Risk is going ‘round
Can you hear the sound
As tranches hit the ground
‘Cause risk is back in town
Tidak ada komentar:
Posting Komentar