Friday, January 18, 2008

The VooDoo Bucket - Level 3 assets under FAS-157

It all sounds very technical, but it is quite important.

Find out (if you're a shareholder in a bank, financial instituion or even a pension fund of any description, and with KiwiSaver, that's most of us) what value of institutions' assets are in the Voodoo bucket.

There's a most useful primer here, and a bearish article from Asia Times online here.

Because until we know (a) where the financial bodies are buried and (b) that they're really dead, and cannot rise up and, like zombies, cause further mayhem (recall that all these toxic products are highly leveraged, so the risk of chain or domino effects is very real), the uncertainty and the negative sentiments will persist.

Capitalism is nothing if not sentimental, y'know.

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