Author Archives: Felix

Paying Down the Mortgage vs Investing in the Market

Should I keep my mortgage balance high in order to invest in stocks and bonds?
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Posted in housing, personal finance | Comments Off on Paying Down the Mortgage vs Investing in the Market

Why do the Chinese Want a Blackstone Stake?

China is investing $3 billion in Blackstone. Why?
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Posted in china, stocks | Comments Off on Why do the Chinese Want a Blackstone Stake?

Adventures in Personal Finance, Part 2: The Rich Couple

Sometimes the middle classes have a hell of a lot more financial horse-sense
than the rich, even if the financial press doesn’t like to spin it that way.
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Posted in housing, personal finance | Comments Off on Adventures in Personal Finance, Part 2: The Rich Couple

Adventures in Personal Finance, Part 1: The Middle-Class Family

Sometimes the middle classes have a hell of a lot more financial horse-sense than the rich, even if the financial press doesn’t like to spin it that way.
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Jerry Falwell is Dead

This is why God invented Christopher Hitchens. (Via)

Posted in Not economics | 6 Comments

Debt Datapoint of the Day, EMBI+ Edition

JP Morgan’s EMBI+ index
of emerging-market bond spreads hit
an all-time high yesterday
, yielding just 144 basis points over Treasury
bonds.
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Posted in bonds and loans | Comments Off on Debt Datapoint of the Day, EMBI+ Edition

Derivatives and CLOs: The Scaremongering Continues

Greg
Ip
and Gillian
Tett
both have pieces today on that old friend of ours, systemic risks to
the financial system.
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Posted in derivatives | Comments Off on Derivatives and CLOs: The Scaremongering Continues

Tech Bubble Redux

The one silver lining for Microsoft, when Google bought DoubleClick for $3
billion a month ago, was that Google was suffering from the winner’s
curse
, and paid way too much for the internet advertising company. Naturally,
then, it took Redmond’s best and brightest only a few short weeks to manage
to spend
$6 billion
on their own internet advertising company, aQuantive.
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Posted in stocks, technology | Comments Off on Tech Bubble Redux

World Bank Stitch-Up to Continue

Just about any process for choosing the World Bank’s president would be better than what we have now, which is no process at all.
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Posted in world bank | Comments Off on World Bank Stitch-Up to Continue

Wolfowitz Finally Wakes up to Reality, Resigns

Talk about a lame duck. Paul Wolfowitz will resign
as president of the World Bank on June 30, a month and a half from now, during
which time he will earn $50,000, tax-free, and do substantively zero useful
work. Then again, it’s not a lot of time to find a replacement. Ngozi,
of course, has an easily-leavable job at the Brookings Institute, and she’s
in Washington already. It would be silly to look at anyone else, if you ask
me.
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Posted in defenestrations, world bank | 1 Comment

Why Venezuela Won’t be the Next Zimbabwe

Venezuela is not Zimbabwe. Yes, Hugo Chavez is making very bad economic decisions — but then again, his elitist predecessors were hardly much better. And very bad economic decisions don’t in and of themselves lead to Zimbabwe-style disaster. For that, you need a power-mad lunatic like Robert Mugabe. And while Chavez might be distasteful to many Americans, a Mugabe he is not.
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Posted in economics | Comments Off on Why Venezuela Won’t be the Next Zimbabwe

Ngozi Okonjo-Iweala for World Bank President!

I doubt that Bush has the vision to nominate Ngozi. But it would be a wonderful day if he did.
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Posted in world bank | Comments Off on Ngozi Okonjo-Iweala for World Bank President!

Fantastic News on Immigration

The immigration
agreement
which has been hammered out between the Senate and the White House
is some of the best news I’ve heard in ages, and I’m keeping lots of fingers
and toes crossed that somehow it makes its way into law.
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Posted in immigration | Comments Off on Fantastic News on Immigration

Explaining the Dentist Puzzle

Why do some dentists get paid three times as much as others?
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Posted in economics | Comments Off on Explaining the Dentist Puzzle

Bernanke on Housing: No Sign of a Rate Cut

Bloomberg says that “Bernanke didn’t discuss monetary policy in his remarks,” but the speech reads very much to me as though he’s saying that the Fed is not going to cut interest rates in response to housing-market weakness.
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Posted in fiscal and monetary policy, housing | Comments Off on Bernanke on Housing: No Sign of a Rate Cut

Contemporary Art: Strength, or Frothiness?

If you look at the art stars of the last bubble – Schnabel, Fischl, Longo
– most of them are still nowhere to be seen, as far as the auction houses
are concerned. Basquiat, of course, is the exception. With the present crop,
working out who’s the Fischl and who’s the Basquiat is the real multimillion-dollar
question.
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Posted in art | Comments Off on Contemporary Art: Strength, or Frothiness?

When Politicians Go Private

Giuliani’s brace of seven-figure salaries makes the $479,000 paid
to John Edwards by Fortress Investment Group seem positively
modest.
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Posted in Politics | Comments Off on When Politicians Go Private

Is Chrysler worth -$30 billion?

The Wall Street Journal, it seems, can read my mind. No sooner do I ask
why Chrysler is going to be borrowing as much as $65 billion in new debt, than
Serena
Ng and Jason Singer
do their best at answering.
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Posted in M&A | 4 Comments

When a $7 Billion Deal is a $70 Billion Deal

Does anybody have a clue what kind of numbers are involved in the Chrysler-Cerberus
deal?
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Posted in M&A | Comments Off on When a $7 Billion Deal is a $70 Billion Deal

Why Economic Advisers Advise

It’s only natural that for anybody who’s never going to be elected president themselves, the next best thing would be to have real policy influence over the president – which is something you might be able to get by hitching your star to a campaign early on.
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Posted in technocrats | Comments Off on Why Economic Advisers Advise

News Doesn’t Matter, Dell Edition

Did Andrew Cuomo just increase Dell’s value by $2.8 billion?
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Posted in stocks | Comments Off on News Doesn’t Matter, Dell Edition

Using Credit Cards Abroad

One of the more annoying of the world’s bank charges is the fee that banks charge you when you make a purchase on your credit card overseas.
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Posted in personal finance | Comments Off on Using Credit Cards Abroad

Goldman Sachs and Lord Browne

Goldman is deservedly drawing some heat for its cowardly decision to fire Lord Browne.
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Posted in defenestrations | Comments Off on Goldman Sachs and Lord Browne

White House Still Well Behind the Wolfowitz Curve

The attempts
by the Bush administration to do right by Paul Wolfowitz are
touching, if laughably inadequate.
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Posted in world bank | Comments Off on White House Still Well Behind the Wolfowitz Curve

Lampert’s Options at Citigroup

What is Eddie Lampert intending to do with his $800 million
(or 0.3%) stake
in Citigroup
?
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Posted in hedge funds, stocks | Comments Off on Lampert’s Options at Citigroup