Monthly Archives: September 2008

Staying on Top of the News

At 5:01pm, Calculated Risk put up a blog entry with the headline "Report: WaMu Attracts No Bids". At 6:19pm, Calculated Risk put up a new blog entry, with the headline "Report: WaMu has Attracted Multiple Bidders". A little bit later, … Continue reading

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A Frazzled Market

I have no idea whether or not the government is going to set up the bailout fund to end all bailout funds — a new RTC which would essentially become one big "bad bank", precluding the need for entities like … Continue reading

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Hirst: Only the Russians Didn’t Get the Memo

Liz Gunnison reports that 80% of the buyers at this week’s Hirst auction were Russian. If that’s true, then I’m more convinced than ever that the sale marks a top for the Hirst market. Maybe the point of exhibiting selected … Continue reading

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Volatility Datapoint of the Day

It doesn’t actually particularly matter which this stock this is. The point is that when the intraday range of stock values is larger than the difference between a stock’s 52-week low and its 52-week high, you know that trying to … Continue reading

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When Regulators Panic

The range of regulatory responses to the current chaos in financial markets is instructive. The SEC bans naked short selling, the Russians just close down their markets altogether before announcing plans to spend $20 billion on stocks, and the FSA, … Continue reading

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Blogonomics: Blodget Poaches Carney

This is not the best time to be looking for work — unless, it seems, you’re a financial blogger. Henry Blodget has just poached John Carney, Dealbreaker’s editor in chief, to run his financial blog, Clusterstock — although Carney says … Continue reading

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Buffett’s Smart Buy

Amidst the craziness in financial markets right now, there’s only one thing that’s certain: when it comes to valuations, nobody knows anything. Morgan Stanley can be cheap one day at $30 a share and then expensive the next day at … Continue reading

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Is Wachovia Too Small to Save Morgan Stanley?

Did I say that today’s liquidity injection should at least get us through the weekend? Well, by "us", clearly I didn’t mean "Morgan Stanley". It’s not trading at zero yet, but it’s getting very close, and if the stock continues … Continue reading

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Breakingviews in the New York Times

Everybody knows that newspapering is a business in desperate straits right now. So why is that financial opinion columns seem to be proliferating? Historically, there was just one, in the FT: Lex. As of next week, Lex alumni will be … Continue reading

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A Lehman Story

It’s clear now that the European and Asian operations of Lehman Brothers will be liquidated and not sold as a going concern. Barclays clearly doesn’t want them, and at this point they’re like bread or fish: getting staler and less … Continue reading

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Picture of the Day

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Idiotic Idea of the Day, SEC Edition

So far, America’s technocrats have held up reasonably well in the face of the hurricane-force winds buffetting the world’s financial system. You can (and many do) quibble with some of the decisions made by Ben Bernanke, Tim Geithner, and Hank … Continue reading

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Bank Megamerger of the Day

While Wall Street has been utterly transformed by this financial crisis, US Main Street banking has not been. Yes, your local Fleet branch is now part of the same empire that owns Merrill Lynch, but it turned itself into a … Continue reading

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Getting Through the Weekend

The latest move in the fiscal and monetary response to the global financial crisis has been to flood the world with money. The Fed boosted its U.S. dollar swap line with foreign central banks by $180 billion…. The Fed also … Continue reading

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Wachovia Stanley? Really?

Why on earth did John Mack put out a memo today blaming short-sellers for the decline in Morgan Stanley’s share price? It’s the corporate equivalent of pinning a "kick me" sign to your own back — and it looks like … Continue reading

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America’s Ad Hoc Fiscal and Monetary Policy

What is this Supplementary Financing Program, under which Treasury is essentially lending money to the Fed? Does it mean that the Fed’s run out of money, as Paul Murphy would have it? Does it mean, pace Tyler Cowen, that central … Continue reading

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Extra Credit, Wednesday Edition

U.S. one month T-bill yield falls to 0.17 pct The cost of protection on the Street Moral Hazard for Corporations The Economy in Two Minutes or Less: Obama trounces McCain in the battle of the TV ads. Spot prices: Smart … Continue reading

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Morgan Stanley in Distress

The good thing about the fact that both Goldman Sachs and Morgan Stanley just released their quarterly earnings is that we have up-to-the-minute information on what (they say) their book value is. For Goldman it’s $99.30 per share; for Morgan … Continue reading

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Beware ETNs

The Chinese renminbi is one of the most stable currencies in the world. Its value against the dollar is severely constrained by the Chinese government, and it never moves very far in any given day. But, it’s hard for foreigners … Continue reading

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Morgan Stanley in the Crosshairs

Why is the stock market down this morning? Haven’t we just averted catastrophe? Shouldn’t the fears — and shorts — of earlier this week be unwound? Madlen Read of the AP reports: Stocks skidded again Wednesday, with anxieties about the … Continue reading

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The $85 Billion Check

Ottorock asks a question: When a gov’t cuts an $85Bn cheque, where do the funds come from? John Jansen hazards a guess at the answer: If the Federal Reserve Bank of New York plans to write an $85 billion check … Continue reading

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Reforming the Patent System

It’s easy to miss amid the chaos, but the WSJ has an important story this morning on Nathan Myhrvold and his company, Intellectual Ventures. It helps to counteract the fluffy excitement of Malcom Gladwell, back in May, which always seemed … Continue reading

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Extra Credit, Tuesday Edition

The K-T Boundary: The best thing yet written on the future of investment banking. Read it. Lehman v Argentina: It looks like Argentina has finally been overtaken as the Biggest Bond Default Ever. Who Replaces AIG in the Dow? How … Continue reading

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Libor + 850bp

It’s done. The US government is bailing out AIG to the tune of $85 billion. But boy is it an expensive loan: Interest will accrue on the outstanding balance at the three-month London interbank offered rate plus 8.5 percentage points. … Continue reading

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Why Bail Out AIG’s Bondholders?

Much as the prospect of an AIG bankrupcy terrifies me, I’m not a fan of an $85 billion government bailout either. Bond investors have already taken enormous mark-to-market losses on their AIG paper; if they realized just a fraction of … Continue reading

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