Monthly Archives: April 2008

Extra Credit, Thursday Edition

O’Neill Says U.S. `Strong Dollar’ Policy Is `Vacuous Notion’ Food prices: How corn ethanol helps cause riots in Haiti and Bangladesh. A Transit Miracle on 34th Street Merrill’s Muppet Moment

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How Jingle Mail Might Help Make Short Sales Easier

Remember youwalkaway.com? It was $995. Sound a bit too expensive? Well, do I have good news for you! Youwalkaway.com now has a competitor, walkawayplan.com, which is only $495! And the new site quotes bloggers, to boot! Apparently, if you go … Continue reading

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727-727 vs 727

A curious postscript to the post below: both the NYT and Slate have slide shows about the Murakami show. Both of them talk about 727-727, and attempt to illustrate it, on slide 10 of the NYT slideshow, and slide 8 … Continue reading

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A Little Financial Knowledge is a Dangerous Thing

The Citi Smith Barney chap at my local Citibank branch is very sweet. Whenever anybody asks to open a brokerage account, he tells them that he’s not a discount brokerage, and that there are lots of discount brokers like E*Trade … Continue reading

Posted in personal finance | 2 Comments

The TED Spread and the Flight to Liquidity

Paul Krugman tries today to explain why he’s so obsessed by the spread between Treasuries and Libor: I got to ask Fed officials about [it], and was told that they preferred the OIS spread, based on Fed funds futures prices. … Continue reading

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JP Morgan: $6 Billion Capital Raising is “Routine”

Joe Giannone managed to get someone at JP Morgan to try to explain what on earth is going on with their $6 billion issue of preferred stock: The bank declined to comment on the transaction, but our sources at JPMorgan … Continue reading

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Why do Investors Pay Fund-of-Funds Managers?

Tim Price isn’t impressed with the way that fund-of-funds managers navigated the volatility of the past 12 months: Hedge funds, often erroneously referred to as an asset class (talent class might be more appropriate, only the phrase smacks of leaden … Continue reading

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Welch Gets It: Don’t Criticize Your Successor

Good on Jack Welch for his loud and public mea culpa both on this morning’s CNBC and in Business Week, after he screwed up big time on CNBC yesterday. His criticism of his successor was pretty harsh, but his backtracking … Continue reading

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JP Morgan’s Really Weird Capital Raise

File under "WTF?": JPMorgan Chase & Co., hours after saying the credit-market crisis is almost over, made plans to raise $6 billion in its biggest offering of perpetual preferred stock, according to data compiled by Bloomberg. The non-cumulative securities priced … Continue reading

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Extra Credit, Wednesday Edition

Here Comes the Next Mortgage Crisis: Add Mark Gimein to the list of people convinced that prime borrowers will walk away from their homes if they’re underwater. Fannie, Freddie Could Hurt U.S. Credit: S&P makes ominous noises about the USA’s … Continue reading

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Can Restaurants Auction Their Reservations?

Adam Platt’s rave review of Momofuku Ko won’t make it any easier to get a table at the white-hot 12-seater in New York’s East Village. But one of the most interesting things about the four stars that Platt awarded the … Continue reading

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George Bush Gets Good News on Oil

George Bush, who wants to slow down the growth of US carbon emissions, got great news today: oil’s over $115 a barrel! I look forward to the White House statement embracing the fact that market mechanisms are sure to reduce … Continue reading

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The Limits of Market Capitalization

Kevin Maney today looks at the mooted $17.7 billion valuation of a merged Delta and Northwest, and contrasts it unfavorably with the market capitalization of Yahoo. "It’s almost hard to believe that all those planes, all those people, all that … Continue reading

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Merrill’s Six Mistakes

The WSJ has a wonderful narrative today of how Merrill Lynch managed to get so badly hit by the mortgage-bond crisis: apparently it’s going to take even more write-downs in the first quarter, making an unprecedented three successive quarterly losses. … Continue reading

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WSJ.com Gets its Redesign

Rafat Ali reports today that after spending "millions" on a redesign, the all-new WSJ.com will launch "in the next few weeks", with a simple aim: "to drive more traffic in a bigger way". At the margin, resdesigns can and do … Continue reading

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Credit Derivatives Datapoint of the Day

Isda: The notional amount outstanding of credit default swaps (CDS) grew 37 percent to $62.2 trillion in the second half of 2007 from $45.5 trillion at mid-year. CDS notional growth for the whole of 2007 was 81 percent from $34.5 … Continue reading

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WealthPorn Day Arrives

It’s WealthPorn Day today, also known as the day that Alpha magazine releases its annual list of the top-earning hedge fund managers. Of course, that also makes it a great day for politicians, including Hank Paulson, to call for greater … Continue reading

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The Latest Victim of the Credit Crunch: Libor

Carrick Mollenkamp has a worrying piece in the WSJ today about Libor in general, and the much-benchmarked three-month Libor fixing in particular. Jitters have made many banks unwilling to extend loans to each other for more than one week. As … Continue reading

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Why Bush Doesn’t Like Cap-and-Trade

You want an argument for why a cap-and-trade system makes more sense than a carbon tax if you want to reduce carbon emissions? Take a look at all the noise surrounding the Bush speech on the subject today. Bush’s goal, … Continue reading

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Extra Credit, Tuesday Edition

John McCain’s gas-tax pander A Recluse Lifts the Veil a Little: Sorkin gets an interview with Stephen Feinberg. Apparently he’s no stickler for fine carpeting. Exxon Mobil investor says: stop wasting our time! The activist investor agitating against activist investors. … Continue reading

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Blogonomics: Herb Greenberg Quits Blogging

The insightful Herb Greenberg is leaving journalism to start up "an independent equity research boutique". And all power to him: as Paul Kedrosky says, "he deserves the broadest possible playing field to display and, yes, benefit financially from his talents". … Continue reading

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How to Respond to a Cease & Desist Letter

Kurt Denke, the president of Blue Jeans Cable, is the Andre Agassi of the audio/video cable industry: he has an absolutely devastating return of serve. You know in the movies where the bully picks a fight with the wrong guy? … Continue reading

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Why Wachovia Needs That $7 Billion

Yesterday, I asked why Wachovia needed another $7 billion in fresh equity, and suggested it might be because it overpaid for Golden West Financial and was considering writing down part of the $25.5 billion acquisition cost. There’s a big problem … Continue reading

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Blogonomics: Ad Network Valuations

Erick Schonfeld reports today that Federated Media, a network which sells ad space on a network of blogs, is raising $50 million at an eye-popping valuation of $200 million. That’s a hell of a lot of money: it’s nine times … Continue reading

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How Holdbacks Brought Down Frontier Airlines

On Friday I got a bit confused about something called credit card holdbacks, and how they could be used to drive an airline into bankruptcy. It turns out that it all goes back to something known as the Fair Credit … Continue reading

Posted in bankruptcy | 1 Comment