Paper clips
Paper clips, aka Ace Greenberg, the legendery CEO of Bear Stearns who was so keen to keep costs under control that he sent a memo to all the employees reminding them to save their paper clips, must be having a fit. Since he left, the bank's risk profile has increased, culminating in a collapse of two of its mortgage based hedge funds this summer. Third quarter earnings fell 61%. Predators are smelling blood and yesterday a Chinese communist party official announced that China's Citic Bank wants to buy a stake. The People's Bank of China has bought a small stake in BG Group (good old British Gas). We should expect more Chinese takeovers (takeaways?) as a result of the massive liquidity bubble which is growing there.
posted by Whispering Walls at 9:35 am
3 Comments:
Nice post. I didn't know about him asking his staff to save paperclips.
I'll have to alert my son to this, he is studying business and economics.
I guess saving paperclips is meant to change people's mindsets they some become much more economically focused.
Ah well, as generations of Scottish Grannies have said, "look after the pennies and the pounds will look after themselves. And don't get involved in CDOs"
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