Author Archives: Felix

Tax Loopholes, Cont.

David Cay Johnston has revealed that $3.7 billion of the proceeds
from Blackstone’s IPO will be taxed not at the income-tax rate, not at the capital-gains-tax
rate, but rather at
a negative rate
.
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Thursday Links Barely Manage

Does Italy really have better management than the UK?
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Why Enormous Personal Debt Means a More Vibrant Economy

Chris Dillow finds
a silver lining
to the ever-increasing amounts of leverage bidding up asset
prices around the world.
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Posted in bonds and loans, economics, personal finance | Comments Off on Why Enormous Personal Debt Means a More Vibrant Economy

BRICs vs ICs

Justin Fox today lays
out the reasons
why Brazil and Rusia pale in importance besides India and
China.
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Posted in emerging markets, stocks | Comments Off on BRICs vs ICs

Why There Aren’t Anti-Collusion Lawsuits in the CDO Mess

A lawyer wants to know whether there might be an antitrust or collusion case
to be brought against Wall Street banks in the wake of the CDO mess.
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Unexpected Correlations: Lead and Crime, Coffee and AIDS

Poverty reduction and AIDS reduction are not always, it would seem, the same thing.
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Posted in development, economics | Comments Off on Unexpected Correlations: Lead and Crime, Coffee and AIDS

Adventures in Corporate Doublespeak, Jones Apparel Edition

Jones Apparel CEO Peter Boneparth has
been fired
. Bloomberg explains
why
:
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Posted in defenestrations, stocks | Comments Off on Adventures in Corporate Doublespeak, Jones Apparel Edition

John Mackey Still Hasn’t Resigned, And Probably Won’t

The reaction to the John Mackey sockpuppet
scandal
has been surprisingly muted this morning.
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Posted in stocks | 1 Comment

Real Estate Leverage Datapoint of the Day

What
on earth are the lenders
to buyers of office buildings
thinking?
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Posted in bonds and loans, housing | Comments Off on Real Estate Leverage Datapoint of the Day

When Papers Promise But Don’t Deliver, CDO Edition

I continue my search
for someone who can shed light on exactly what happens to the alphabet soup
of MBS and CDO and CDS when subprime default rates rise.
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Posted in bonds and loans | Comments Off on When Papers Promise But Don’t Deliver, CDO Edition

John Mackey, Sockpuppet, Should Resign

Mackey should resign as CEO of Whole Foods: he clearly doesn’t have the self-control necessary to run a major public company.
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Why Live Earth Shouldn’t Count Its Viewers

Carl Bialik asks,
apropos the Live Earth estimates of 2 billion viewers: "Is it OK to cite
questionable estimates in service to a good cause?" The answer, of course,
is no. But especially not when the issue is one where the entire moral
high ground is predicated on your having more accurate and reliable numbers
than the other guy.
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Posted in statistics | Comments Off on Why Live Earth Shouldn’t Count Its Viewers

Private Equity: Why Higher Taxes Mean Higher Returns

The Epicurean Dealmaker has a
great argument
today for abolishing the favorable tax treatement given to
private-equity principals.
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Posted in private equity, taxes | Comments Off on Private Equity: Why Higher Taxes Mean Higher Returns

Sun Valley: The Rich and the Reckless

Why doesn’t Barry Diller tie his shoelaces?
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Whether Computers Can Help Poor and Middle-Income Countries

Computers can do many things, but can they make poor countries richer? One
of the leading researchers when it comes to the impact of information and communication
technology (ICT) on development is the World Bank’s Charles Kenny
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Posted in development | Comments Off on Whether Computers Can Help Poor and Middle-Income Countries

Bottled Water

I’m hoping that by the time China becomes the world’s dominant economic power, bottled water will be remembered as a 20th-Century curiosity, rather than a fact of life.
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Posted in economics, governance | Comments Off on Bottled Water

Trying To Make Sense of the Mortgage-Backed Market

Andrew
Leonard
says that I’m "a voice of calm and restraint when the rest
of the econo-blogosphere is racing to the windows to see if the sky has started
to rain suicidal investment bankers". Always happy to help. So let me revisit
the issue of US mortgage-backed bonds, and try to put yesterday’s panic into
a bit of context.
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Posted in bonds and loans, housing | Comments Off on Trying To Make Sense of the Mortgage-Backed Market

Mike Bloomberg, Social Networking Mogul

David
Carr
, bringing bylines to DealBook, notes that Michael Bloomberg
is going to be hanging out with the MySpace and Facebook honchos (that’s Rupert
Murdoch
and Mark Zuckerberg, for those of you following
along at home) at Herb Allen’s Sun Valley power klatsch this
week. Carr tells us that Bloomberg "has proven to be one of the most durable
and consistently innovative media barons of our time". What he doesn’t
tell us is that Bloomberg was arguably the world’s first social-networking billionaire.
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Posted in technology | Comments Off on Mike Bloomberg, Social Networking Mogul

The Economics of Book Publishing

If a book like Freakonomics can sell more copies by fudging the science, there’s a good chance that it will.
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Posted in economics | Comments Off on The Economics of Book Publishing

Argentina Quietly Starts Making Friends With Energy Companies

Everyone wins. The energy companies get the tariff increases they’ve long been demanding, Argentina gets the energy it needs, and Kirchner gets to keep the whole thing quiet.
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How To Get To AAA

In the CDO market, I’m not convinced that overcollateralization always works particularly well.
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Posted in bonds and loans | Comments Off on How To Get To AAA

Why the S&P-Triggered Subprime Selloff Makes No Sense

S&P’s announcement today tells us nothing that we haven’t known for months about the subprime market. So count me utterly baffled by the market reaction.
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Posted in bonds and loans, housing | Comments Off on Why the S&P-Triggered Subprime Selloff Makes No Sense

The Value of the Hilton Brand

Last week was one of the best weeks in Hilton family history: it showed that Barron Hilton, just like his father Conrad, deserves to be remembered as an excellent creator of value in the hospitality industry.
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Posted in private equity | Comments Off on The Value of the Hilton Brand

Anti-Counterfeiting Bill Doing Well in Washington

John McCary of the Wall Street Journal reports today on the Bayh-Voinovich
bill, an anti-counterfeiting bill which got nowhere in 2005 but which has slightly
better prospects
now, in the wake of minor revisions.
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Posted in Politics | Comments Off on Anti-Counterfeiting Bill Doing Well in Washington

Jockeying Ends for IMF Position

Dominique
Strauss-Kahn
is the
official EU candidate
to lead the IMF, which means he is the next leader
of the IMF.
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Posted in IMF | Comments Off on Jockeying Ends for IMF Position