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"The Citigroup chief executive told the Financial Times that the party would end at some point but there was so much liquidity it would not be disrupted by the

by bcg1 11y ago

"The Citigroup chief executive told the Financial Times that the party would end at some point but there was so much liquidity it would not be disrupted by the turmoil in the US subprime mortgage market. He denied that Citigroup, one of the biggest providers of finance to private equity deals, was pulling back. 'When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing,' he said in an interview with the FT in Japan." http://business.time.com/2007/07/10/citigroups_chuck_prince_wants/ http://business.time.com/2007/07/10/citigroups_chuck_prince_... (emphasis mine)

hacknat 11y ago
I'm not being facetious, but are you backing me up? This bolsters my point. Equating the US subprime crisis and the vast entanglements that existed therein to the current situation in SV is exactly the kind of monomaniacal thinking that that SV engages in all the time. My point was that there aren't any entanglements, there isn't any exposure. Prince was making the point that there was complicated entanglements that existed at Citigroup so it would be hard to predict what would happen, but hopefully their lack of exposure would help (which, by the way, it did). There simply isn't enough public exposure to SV to make a bubble popping important to the overall economy.
- bcg1 11y ago
  You could be right, and frankly I hope you are. If the current mini-mania slows down at all or a couple of big names hit some bumps in the road... the financiers' portfolios also are also affected, and if there a GSIFI's that can't afford to take that hit and can't find the liquidity to paper over the losses... yikes