Originally posted by robertteh:
Ernst & Young: US Sub-prime woes unlikely to affect private equities in Asia.
Did E&Y conduct a macro- or micro- analysis supported by facts and researches or is it only trying to report good news and play down bad ones and always toeing the line of the government?
How independent and credible is such view?
Personally, I don't think that EY is "toeing the line of the government" per say, but rather, contributing its piece to the growing concern of the global sell-down in view of the sub-prime mortgage issues in the states.
No doubt the banks in Asia, and especially that of Singapore, have funds invested in the US sub-prime mortgage sector, and that the high rise of default cases have wiped out a sizable chunk of the assets side on their balance sheets, but I doubt that it will lead to a complete systematic failure of the banks and ultimately undermine the entire economy.
In my view, the recent stock corrections are predominantly sentiment based. Huge financial firms, like EY and etc, has a controlling interest in playing down the current sell-down as a poor market isn't good for business isn't it ?
