http://www.creditwritedowns.com/2008/07/irish-banks-have-unreported-bad-debt.html Sun, 08 Nov 2009 03:42:04 -0700 http://wordpress.org/?v=2.8.5 hourly 1 http://www.creditwritedowns.com/2008/07/irish-banks-have-unreported-bad-debt.html/comment-page-1#comment-5343 Europe is next - Credit Writedowns Wed, 27 May 2009 07:02:31 +0000 http://www.creditwritedowns.com/2008/07/irish-banks-have-unreported-bad-debt.html#comment-5343 [...] banks or the U.S. has been overzealous in its writedown party. I’m sure you can guess I favor the former scenario.As for the rest of Europe, there is significant weakness across the board. However, I should point [...] [...] banks or the U.S. has been overzealous in its writedown party. I’m sure you can guess I favor the former scenario.As for the rest of Europe, there is significant weakness across the board. However, I should point [...]

]]> http://www.creditwritedowns.com/2008/07/irish-banks-have-unreported-bad-debt.html/comment-page-1#comment-118 BenGraham Sat, 19 Jul 2008 13:44:00 +0000 http://www.creditwritedowns.com/2008/07/irish-banks-have-unreported-bad-debt.html#comment-118 In sum: you take what the banks have lost in terms of market cap, some 41bn, and you equal it to the amount of bad debt you assume is sitting on their books? Try this, for instance: in the last year H&M, one of the best retailers in the world, has lost in terms of market cap some 10bn euro. Now, reasoning the same way, should we expect, who knows, H&M to see a 10bn drop in its revenues? or maybe in its profits? But since its net income last year was 1/5 of 10bn, maybe we should expect it to lose 8bn this year, and the likes..... This is not about the Irish banks or their financial health, this is about journalism. I have no comment: I just think that 90% of the press should go back to school and learn at least the A,B,C not of finance (there's no hope on that side), but of common sense. In sum: you take what the banks have lost in terms of market cap, some 41bn, and you equal it to the amount of bad debt you assume is sitting on their books? Try this, for instance: in the last year H&M, one of the best retailers in the world, has lost in terms of market cap some 10bn euro. Now, reasoning the same way, should we expect, who knows, H&M to see a 10bn drop in its revenues? or maybe in its profits? But since its net income last year was 1/5 of 10bn, maybe we should expect it to lose 8bn this year, and the likes….. This is not about the Irish banks or their financial health, this is about journalism. I have no comment: I just think that 90% of the press should go back to school and learn at least the A,B,C not of finance (there's no hope on that side), but of common sense.

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