Author Archives: Felix

Closing Private-Equity Tax Loopholes

There’s really no reason why hedge fund managers and private-equity billionaires deserve the kind of tax treatment that they’re basking in at the moment.
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Taxing Paris Hilton

Paris Hilton is actually a money-making machine.
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Should Banks be Worried About Equity Bridges?

Equity bridges are certainly a sign of the frothiness of the market. But I don’t think they’re particularly risky in and of themselves.
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A Bull-Market Song

China’s many stock market miracles will last forever.
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More Signs the Art Market is Peaking

Contemporary art is not a good investment.
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Questions About Bear and Goldman’s Mortgage Exposures

Do banks only make money on mortgages by being long the market?
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Carbon Taxes in the Skies

Taxing every annual holiday flight, bar the first.
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Bill Gross, Prose Stylist

Apparently "the wait is excruciating, and in some cases painful".
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Andreessen and Dyson on Facebook

Occasionally the blogosphere comes up with the kind of analysis that any highly-paid analyst would be incredbily proud of. In the past couple of days, we’ve seen both Marc Andreessen and Esther Dyson publish their takes on Facebook freely on the web, without any kind of corporate firewall or conflict of interest. If you’re interested in the direction that the web is going, both of these are must-read pieces.
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JP Morgan Snubs Silverstein in Move Back Downtown

It’s interesting that Silverstein was willing to let JP Morgan fall through his fingers: there aren’t that many banks who want to move their headquarters to a new building in downtown New York, and he’s going to need to find three.
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How Sheikh Ahmed Zaki Yamani Won the Cold War

Did Reagan win the Cold War? Or, more broadly, did US policies in the 1980s
result in the collapse of the Soviet Union? A wonderful
analysis
by Yegor Gaidar, who was there when it happened,
suggests that the answer is no.
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London Thrives in the Face of Insider Trading

It is incumbent on the FSA not to let insider trading get too blatant. On the other hand, it’s quite easy to overstate the negative effects that insider trading can have.
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John Paulson Continues His Quixotic Fight Against Bear Stearns

The Bear
Stearns vs John Paulson saga
shows no sign of going away any time soon
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Lant Pritchett’s Big Idea

Advocating a huge increase in international labor mobility.
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A Closer Look at Cov-Lite Loans

Catherine
Craig
has a great, in-depth look today at the "cov-lite" phenomenon
whereby loans are increasingly being syndicated without the restrictive covenants
of yesteryear.
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Art Market Bubble Watch

I’m always very hesitant to call a bubble, but I’m doing that now, with respect to Richard Prince’s latest works.
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Why Europe is Right on Climate Change

Kay’s proposed solution is… well, Kay doesn’t have a proposed solution. Instead, he asks for “modesty of aspiration and acknowledgement that many uncertainties cannot be resolved”. In other words, absolutely nothing. We can – we must – do better than that.
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Fed: Still Credible

The market increasingly sees a rate hike as possible, but it’s a long way from seeing a rate hike as necessary. The Fed is still ahead of the curve here, which means that its credibility, at least for the time being, is not at issue.
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Outsize Returns From Investing in Microfinance

Early investors in Compartamos got 100% returns on their investment, compounded over eight years.
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Monetizing the Obesity Theme

Merrill Lynch has a research
report
up on its website on how best to invest in "the emerging obesity
epidemic".
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US Population Density Datapoint of the Day

"If every American were given a house on a quarter acre, so that every
family of four had a full acre, that distribution would not use up half the
land in Texas."
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How to Write About Companies

A WSJ article has 10 different numbers in the space of two paragraphs totalling 119 words.
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Regulating Subprime Mortgages

The Economist’s Free Exchange blog today attacks
Elizabeth Warren, who would
like to regulate
the subprime mortgage market. Given the name of the blog,
it’s quite easy to predict where it comes down on such matters. But in fact
the issue is not quite as black-and-white as either the Economist or Dr Warren
might like to think.
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Cash Offers vs Stock Offers

Even people who prefer cash, it
turns out
, are still more likely than not to hold onto shares if that’s
what they’re given
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Quebec Taxes Carbon

Quebec’s carbon tax isn’t really Pigovian, because it isn’t large enough to noticeably reduce carbon emissions. But it’s a good start, since it’s always easier to increase a “sin tax” than it is to implement one initially.
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