Sep 21, 2008

Sunday night: “This is looking suspiciously like the last act of Hamlet (or maybe Reservoir Dogs).” Monday: Market participants trade frantically in a Sunday-afternoon trading session to hedge their Lehman exposures - with the proviso that the trades will be busted if Lehman doesn’t file by midnight NY time. Lehmans files for Chapter 11 bankruptcy at half past midnight NY time - becoming America’s biggest bankruptcy ever, six times larger by assets than the previous record-holder (Worldcom in 2003).

Sep 18, 2008

In Singapore, insurance companies do more than just cover you when you turn up your toes. For whatever reason, whole-life insurance policies are seen as a legitimate investment tool over here (they’re not, by the way). Instead of brokerage accounts, Singaporean investors like to use “investment-linked insurance policies” - wrap accounts for unit trusts - as a way of accessing the markets, or just as a way to “pass something on to the children”.

Sep 4, 2008

At the beginning of August, the Zimbabwean central bank knocked ten zeroes off the Zimbabwean dollar exchange rate, and suddenly one USD was worth about forty ZWD. At the beginning of September, one USD is worth four thousand ZWD. That’s… what… 10,000% inflation per month… or 100,000,000,000,000,000,000,000,000% per annum (a hundred trillion trillion percent, for those keeping score at home). Which, admittedly, is a vast improvement over the old rate: 430 trillion trillion trillion percent.

Jul 1, 2008

Because the last post was so popular: ZimbabweanEquities.com has printed yesterday’s OMIR at somewhere north of 164 trillion to the USD. Now, even for Zimbabwe, that seemed kinda high. But… Old Mutual’s closing price yesterday in Harare was ZW$300,000,000,000; Ditto in London was 92.8p. The ratio is 1:1, so 1 GBP is worth 300 billion / 0.928, or about 323 billion ZWD; GBP/USD late yesterday (the WM Company fixing is close enough for government work) was 1.

Jun 24, 2008

Update: The Old Mutual implied exchange rate today is Z$78 billion to 1 USD. So you can chop all of the values listed below in half. Wow. As a followup to this morning’s wrap of the Zimbabwean currency market: it’s fascinating to read the business pages of the Zimbabwean papers and translate the numbers into USD. Here’s the stock market wrap from Pravda’s Zimbabwe edition this morning. (If you’d like to read a Zimbabwean newspaper that isn’t run by Mugabe’s propagandists, the Financial Gazette is apparently quite good.