Credit Crisis ‘Only Now Beginning’

David Goldman, a portfolio strategist at Asteri Capital, talks about the outlook for the U.S. financial-services industry, the impact of the hedge-fund model on market volatility and his investment advice.

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Click for audio
Bloomberg

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00:00 U.S. economy, consumers, savings
01:24 Hedge-fund model, volatility, "catastrophe"
04:10 Banking volatility, credit crisis outlook
08:20 Hedge fund vs. private equity model: AIG
09:55 Merrill’s balance sheet; mortgage securities
12:42 Off-balance-sheet entities; bank solvencies
15:59 Outlook for banking illiquidity, hedge funds
18:06 Expense to tax payers; investment advice

Running time 20:03

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Source:
Asteri’s Goldman Says Credit Crisis `Only Now Beginning’: Audio
Bloomberg, August 13, 2008 19:24 EDT
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aKQ5ONwezIsY

What's been said:

Discussions found on the web:
  1. leftback commented on Aug 14

    Sounds interesting but another f***ing Bloomberg item I can’t hear on my Mac.

    Any chance of some UbiqCerpts from this?

    (I am on the road this week – interesting to get the view from London on the US credit crisis – the FT has had some good stuff.)

  2. bc commented on Aug 14

    Ya, I cant hear it either… “How you like these Apples?”

  3. Vermont Trader commented on Aug 14

    that is a great interview… thanks for posting.

  4. Josh commented on Aug 14

    Thanks for posting, I heard most of it last night on the XM radio. He sure sounds like a no-nonsense kind of guy.

    “Mr. Market will kick their teeth in…”

  5. Mike in NOLa commented on Aug 14

    Amazing interview. Channels most of us, imagine, even those with Macs 🙂

    Who is the interviewer? He seems pretty reasonable and would like to look for more of his work.

  6. David Merkel commented on Aug 14

    David Goldman is a bright analyst and underrated. I met him back when he was with First Boston, and I was a mortgage bond manager. His commentary at CSFB and BofA helped make me a better investor.

  7. mp commented on Aug 14

    Goldman may be a first-rate financial analyst, but I have a real problem with his politics and downright spooky agenda.

  8. mp commented on Aug 14

    For the most part, I don’t have a problem with Goldman’s financial analysis, but his politics are spooky.

    It sometimes makes me wonder if he isn’t pushing some neocon agenda.

  9. Josh Neumann commented on Aug 14

    Very informative interview. Again, another example of hedge fund investors jumping in and out and creating a worse economy when they could just ride it out and make a nice profit.

    I’m getting tired of uneducated investors looking for the quick buck and creating a more unstable economy with that get rich quick mentality. Until they begin to look for long term profits, we are going to continue to experience these dramatic market swings.

  10. Kurt Osis commented on Aug 15

    I call bullshit on this clown! What kind of hedge fund manager puts all of his assets in cash when he thinks he has a clear out look on the market? I could have sworn that was exactly when you should invest! If he thinks, long and short bets don’t have any sense because it increases his Sharpe ratio (the sharpe ratio is a nonsense measure of volatility, by the way) then why the hell doesn’t this guy get long volatility? Seriously this point of view is sheer idiocy.

    He also says, the hedge on deflation is to buy commodities. I’m quite sure that’s exactly backwards.

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