Crash 2008 Part
3 (click for link )
Prediction for 2008 in this video
His advice on jan 2008 - buy lots of puts on London and
New York financial community
Dow on Jan 08 12800, Today Dow is 8200
Jim Rogers, a former partner of George Soros in the famed
Quantum Fund.
The fund manager, who has traveled extensively in emerging
markets and lives part of the year in Asia, says sovereign wealth
funds in Abu Dhabi and Singapore that recently made large
investments in Citigroup and UBS AG (UBS, news, msgs) are likely to lose a lot of money on their
ploys. "They're making a big mistake; these banks
have many more problems still ahead. They should wait until these
companies are really on the ropes a few years from now . . . and
trading at $5 a share."
But aren't they supposed to be the smart money? Maybe not.
"I know these people, and they have never
given me the impression that they're smarter than anyone
else," Rogers says. "They have gigantic amounts of money,
but they've made a bad judgment in these cases."
Source
http://articles.moneycentral.msn.com/Investing/SuperModels/StockMarketWinterIsMovingIn.aspx?page=1
Stock price on Jan
16
Citi Group
$3.79
Losses in Merril Lynch Investment (down 72%)
$3.6 billion USD/
$5.3 Billion SGD loss
Losses in Citi Group Convertibles (Estimated decline in valuation
60-80%)
(4.12 Billion - 5.5
Billion USD loss)/ (6.09 Billion - 8.14 Billion SGD
Loss)
Compare that with the MM
Lee take on Citi Group
Singapore's GIC may invest in more
banks
Reuters,
April 30
The Government of Singapore Investment Corp may invest in
more banks in Europe and the United States if it gets the chance,
adding to its stakes in beleaguered bank UBS and Citigroup, its
chairman told Bloomberg TV.
"If there are other banks of the quality of the two that we bought
into, with the promise and the capabilities and inherent
capabilities to recover, we have got the liquidity to meet it, to
make such an investment," Lee, 84, said in a Bloomberg Television
interview late yesterday. "We will not rule it out."
"We are buying something that we intend to keep for the next two to
three decades and grow with them", he said, adding that GIC was a
long-term investor.
After throwing in billions of dollars into
credit-crunch battered financial institutions, Lee Kuan Yew
is prepared to deploy more capital into this area. Ever confident
about GIC's investments, the octogenarian further defended GIC's
decisions:
"The franchise
of the banks, the expertise that they have, under proper
leadership, they will be able to recover and rise again ... Will
there be another Swiss bank like UBS for wealth management? I doubt
it, we doubt it, that is why we invested in it." Citigroup, he
added, had "an enormous spread worldwide as a retail
bank".
According to Lee Kuan Yew, UBS
and Citigroup have "inherent capabilities to recover" from the
credit crisis.
Just a few months after GIC's investments, recovery of the banking
sector is far from sight. Instead, the banks are
scrambling to raise more
capital to deal with the damage the credit crunch has
dealt them:
