AIG Is Even Worse Off Than You Think
Remember the fairy tale about AIG being an otherwise healthy insurance company that just got a little crazy selling credit default swaps? Well, it's time to put that one to rest.
The New York Times has reviewed state regulatory filings and discovered that "AIG's individual insurance companies have been doing an unusual volume of business with each other for many years — investing in each other’s stocks; borrowing from each other’s investment portfolios; and guaranteeing each other’s insurance policies, even when they have lacked the means to make good. Insurance examiners working for the states have occasionally flagged these activities, to little effect."
"More ominously, many of A.I.G.’s insurance companies have reduced their own exposure by sending their risks to other companies, often under the same A.I.G. umbrella," the NYT reports.
By Clusterstock
Friday, July 31, 2009
The Government’s Fight To Make Rich Bankers Poor
The Government’s Fight To Make Rich Bankers Poor
Andrew Cuomo, who is running for governor of New York State without having announced it, is denouncing Wall St. because of its big pay packages while in his current role as state attorney general. His office recently released a report that showed that nearly 5,000 employees at the nation’s nine largest banks made more than $1 million last year. This concerns Cuomo, of course, because Wall St. was in the process of losing hundreds of billions of dollars and taking sums that were nearly as large from the federal TARP program while at the same time distributing rich compensation packages.
By 24/7 WallStreet
Andrew Cuomo, who is running for governor of New York State without having announced it, is denouncing Wall St. because of its big pay packages while in his current role as state attorney general. His office recently released a report that showed that nearly 5,000 employees at the nation’s nine largest banks made more than $1 million last year. This concerns Cuomo, of course, because Wall St. was in the process of losing hundreds of billions of dollars and taking sums that were nearly as large from the federal TARP program while at the same time distributing rich compensation packages.
By 24/7 WallStreet
Goldman's Quarter-Trillion-Dollar Cushion
Goldman's Quarter-Trillion-Dollar Cushion
Not at all the riverboat gambler, Goldman Sachs has fully hedged its book of credit default swaps, and then some
By Forbes.com
Not at all the riverboat gambler, Goldman Sachs has fully hedged its book of credit default swaps, and then some
By Forbes.com
Deutsche Bank Chief Expects ‘Next Wave’ of Defaults
Deutsche Bank Chief Expects ‘Next Wave’ of Defaults
Deutsche Bank Chief Executive Josef Ackermann said that rising delinquencies among consumer and corporate borrowers are the “next wave” of the financial crisis and may affect banks that have avoided losses so far, Bloomberg News reported.
“This crisis has consisted of a series of earthquakes, with changing epicenters,” Mr. Ackermann said late Thursday at an event in Zurich. “Bad loans are the next wave. Banks that have fared relatively well so far will also be affected by this.”
By NY Times Dealbook
Deutsche Bank Chief Executive Josef Ackermann said that rising delinquencies among consumer and corporate borrowers are the “next wave” of the financial crisis and may affect banks that have avoided losses so far, Bloomberg News reported.
“This crisis has consisted of a series of earthquakes, with changing epicenters,” Mr. Ackermann said late Thursday at an event in Zurich. “Bad loans are the next wave. Banks that have fared relatively well so far will also be affected by this.”
By NY Times Dealbook
Thursday, July 30, 2009
A Look at Passport Capital's Current Holdings
A Look at Passport Capital's Current Holdings
These guys are SMART- Check out their holdings
Year to date for 2009, Passport Capital is up 25.4% compared to the S&P500 being up only 3.2% over the same timeframe. Passport was up 18.1% for the 2nd quarter of 2009 and now has seen a 26.4% compounded net return since inception. This phenomenal number comes against a -3.1% return for the S&P500 over the same period. Overall, Passport's main fund now has $1.3 billion under management and the firm as a whole manages $2.1 billion. You can view numerous other hedge fund performance numbers in our June hedge fund update.
By Seeking Alpha
These guys are SMART- Check out their holdings
Year to date for 2009, Passport Capital is up 25.4% compared to the S&P500 being up only 3.2% over the same timeframe. Passport was up 18.1% for the 2nd quarter of 2009 and now has seen a 26.4% compounded net return since inception. This phenomenal number comes against a -3.1% return for the S&P500 over the same period. Overall, Passport's main fund now has $1.3 billion under management and the firm as a whole manages $2.1 billion. You can view numerous other hedge fund performance numbers in our June hedge fund update.
By Seeking Alpha
Are These Breasts Deductible?
Are These Breasts Deductible?
Although some may think this may be the way to lipo the idle rich, in reality it is working women who would be targeted—those who earn between $30,000 and $90,000 a year, and baby boomers attempting to kickstart or rekindle a career.
By The Daily Beast
Although some may think this may be the way to lipo the idle rich, in reality it is working women who would be targeted—those who earn between $30,000 and $90,000 a year, and baby boomers attempting to kickstart or rekindle a career.
By The Daily Beast
Goldman’s real estate gambit
Goldman’s real estate gambit
Is history repeating itself at Goldman Sachs?
In late 2006, Goldman shrewdly began backing away from the residential mortgage market. With little fanfare, the firm began aggressively hedging its exposure to home loans, in particular mortgages to borrowers with shaky credit histories.
This savvy and somewhat stealthy strategy enabled Goldman to pawn off lots of its soon-to-be toxic mortgages and mortgage-backed securities on other institutions — forcing those foolhardy speculators to pay the price when the subprime market blew up.
And much to everyone else’s chagrin, Goldman even made money off the housing meltdown when some of its hedges — specifically a bet that a subprime mortgage index would plunge — paid off handsomely.
It appears Goldman is following a similar script with U.S. commercial real estate, the next big asset class that many believe is on the verge of disaster.
Goldman recently reported owning $6.4 billion in commercial mortgage loans. It also is holding some $1.6 billion in commercial mortgage-backed securities, or CMBS. That’s a big retreat from where it was just two years ago.
And in a sure sign that Goldman expects a good number of commercial real estate borrowers to default, the firm says it marked down the overall value of its commercial mortgages portfolio by nearly 50 percent.
By contrast, regional banks, many of which have disproportionately high exposures to commercial real estate, are being far less aggressive than Goldman in marking down their respective portfolios.
By Reuters
Is history repeating itself at Goldman Sachs?
In late 2006, Goldman shrewdly began backing away from the residential mortgage market. With little fanfare, the firm began aggressively hedging its exposure to home loans, in particular mortgages to borrowers with shaky credit histories.
This savvy and somewhat stealthy strategy enabled Goldman to pawn off lots of its soon-to-be toxic mortgages and mortgage-backed securities on other institutions — forcing those foolhardy speculators to pay the price when the subprime market blew up.
And much to everyone else’s chagrin, Goldman even made money off the housing meltdown when some of its hedges — specifically a bet that a subprime mortgage index would plunge — paid off handsomely.
It appears Goldman is following a similar script with U.S. commercial real estate, the next big asset class that many believe is on the verge of disaster.
Goldman recently reported owning $6.4 billion in commercial mortgage loans. It also is holding some $1.6 billion in commercial mortgage-backed securities, or CMBS. That’s a big retreat from where it was just two years ago.
And in a sure sign that Goldman expects a good number of commercial real estate borrowers to default, the firm says it marked down the overall value of its commercial mortgages portfolio by nearly 50 percent.
By contrast, regional banks, many of which have disproportionately high exposures to commercial real estate, are being far less aggressive than Goldman in marking down their respective portfolios.
By Reuters
Bankruptcies: The Next Wave
Bankruptcies: The Next Wave
Credit markets have already improved and the economy may be on the road to recovery, but that won't prevent a new run of corporate bankruptcies in the next year
Recent earnings reports show companies are slashing costs, paying off debt, and stockpiling cash. Meanwhile, economists see signs the economy is slowly improving.
Unfortunately, none of that could prevent a wave of bankruptcies by firms walloped by the recession and credit crisis.
That's the prediction of experts on bankruptcy, who say too many firms are loaded up with too much debt to survive the next year without defaulting on their debt obligations and filing for bankruptcy protection.
By Business Week
Credit markets have already improved and the economy may be on the road to recovery, but that won't prevent a new run of corporate bankruptcies in the next year
Recent earnings reports show companies are slashing costs, paying off debt, and stockpiling cash. Meanwhile, economists see signs the economy is slowly improving.
Unfortunately, none of that could prevent a wave of bankruptcies by firms walloped by the recession and credit crisis.
That's the prediction of experts on bankruptcy, who say too many firms are loaded up with too much debt to survive the next year without defaulting on their debt obligations and filing for bankruptcy protection.
By Business Week
Wednesday, July 29, 2009
Dow Sends Buy Signal That’s Worked Since 1921: Chart of the Day
Dow Sends Buy Signal That’s Worked Since 1921: Chart of the Day
The Dow Jones Industrial Average is sending a buy signal that has foreshadowed gains of 18 percent during the past nine decades.
The 30-stock gauge climbed to more than 10 percent above its mean level from the previous 200 days, rebounding from 34 percent below the so-called 200-day moving average in November, according to data compiled by Bloomberg. Eighteen of the last 21 times the Dow rallied from at least 10 percent below the 200-day level to 10 percent above, it posted gains during the next 12 months, Bloomberg data since 1921 show.
From Blomberg.com
The Dow Jones Industrial Average is sending a buy signal that has foreshadowed gains of 18 percent during the past nine decades.
The 30-stock gauge climbed to more than 10 percent above its mean level from the previous 200 days, rebounding from 34 percent below the so-called 200-day moving average in November, according to data compiled by Bloomberg. Eighteen of the last 21 times the Dow rallied from at least 10 percent below the 200-day level to 10 percent above, it posted gains during the next 12 months, Bloomberg data since 1921 show.
From Blomberg.com
You Can't Kill Wall Street
You Can't Kill Wall Street
As the financial markets teetered on the brink of chaos last fall, few had the fortitude to predict that just a half year later or so Wall Street would snap back. Yet capitalism's mailing address has proved harder to kill than Jason Voorhees. Still, after last November's near-death experience, it's hard not to wonder what to expect now that Wall Street is back from the dead
By Forbes.com
As the financial markets teetered on the brink of chaos last fall, few had the fortitude to predict that just a half year later or so Wall Street would snap back. Yet capitalism's mailing address has proved harder to kill than Jason Voorhees. Still, after last November's near-death experience, it's hard not to wonder what to expect now that Wall Street is back from the dead
By Forbes.com
The Next Bubble Can Be in Equities- Marc Faber
"The Next Bubble Can Be In Equities"
"There is a bubble that the FED and the government are creating right now and this is a bubble in government debt, in the size of it. They are being very sucessful at that.Eventually the US Government will go bankrupt the way California is almost bankrupt, but that will take some time. The next bubble im my opinion can be a bubble again in equities." Marc Faber, Bloomberg TVMarc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
By Marc Faber Blog
"There is a bubble that the FED and the government are creating right now and this is a bubble in government debt, in the size of it. They are being very sucessful at that.Eventually the US Government will go bankrupt the way California is almost bankrupt, but that will take some time. The next bubble im my opinion can be a bubble again in equities." Marc Faber, Bloomberg TVMarc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
By Marc Faber Blog
Polyamory—relationships with multiple, mutually consenting partners—has a coming-out party
Polyamory—relationships with multiple, mutually consenting partners—has a coming-out party
Terisa and Matt and Vera and Larry—along with Scott, who's also at this dinner—are not swingers, per se; they aren't pursuing casual sex. Nor are they polygamists of the sort portrayed on HBO's Big Love; they aren't religious, and they don't have multiple wives. But they do believe in "ethical nonmonogamy," or engaging in loving, intimate relationships with more than one person—based upon the knowledge and consent of everyone involved. They are polyamorous, to use the term of art applied to multiple-partner families like theirs, and they wouldn't want to live any other way.
By Newsweek
Terisa and Matt and Vera and Larry—along with Scott, who's also at this dinner—are not swingers, per se; they aren't pursuing casual sex. Nor are they polygamists of the sort portrayed on HBO's Big Love; they aren't religious, and they don't have multiple wives. But they do believe in "ethical nonmonogamy," or engaging in loving, intimate relationships with more than one person—based upon the knowledge and consent of everyone involved. They are polyamorous, to use the term of art applied to multiple-partner families like theirs, and they wouldn't want to live any other way.
By Newsweek
This commodity is setting up for a huge fall -Copper
This commodity is setting up for a huge fall -Copper
Copper's 80% rally this year could be coming to an end. Inventories have risen for the second straight week, and Sumitomo Metal Mining Co., Japan's second-largest smelter, said Chinese imports are slowing on the back of the country's record purchases. U.S. copper scrap exporters also noted fewer shipments to Asia.It looks like China's recent record purchases of the metal have supplied the country with all the copper it will need coming out of the recession. When the world's biggest buyer of your product stops buying, look out below…Read full article...
By The Daily Crux
Copper's 80% rally this year could be coming to an end. Inventories have risen for the second straight week, and Sumitomo Metal Mining Co., Japan's second-largest smelter, said Chinese imports are slowing on the back of the country's record purchases. U.S. copper scrap exporters also noted fewer shipments to Asia.It looks like China's recent record purchases of the metal have supplied the country with all the copper it will need coming out of the recession. When the world's biggest buyer of your product stops buying, look out below…Read full article...
By The Daily Crux
Tuesday, July 28, 2009
Bookmark This Page- Great Analysis of All Markets
Bookmark This Page- Great Analysis of All Markets
By Mitchell Brown TheEnlightenedWallstreeter.com
By Mitchell Brown TheEnlightenedWallstreeter.com
BXP's Mort Zuckerman: "The Economy Is Worse Than It Looks"
BXP's Mort Zuckerman: "The Economy Is Worse Than It Looks"
One would think that if anyone had an interest in painting an overly optimistic picture for the economy in general, and commercial real estate in particular, the Chairman of office uber-REIT Boston Properties would be it. Nope. Morty is about as bearish (or realistic as Zero Hedge likes to call it) as they come. Mort focuses not only on the worse than represented unemployment numbers, but the lower consumption, the lower confidence, and the overall much weaker economy than represented. "The government is addressing not the real economy but the confidence in the economy."
By Zero Hedge
One would think that if anyone had an interest in painting an overly optimistic picture for the economy in general, and commercial real estate in particular, the Chairman of office uber-REIT Boston Properties would be it. Nope. Morty is about as bearish (or realistic as Zero Hedge likes to call it) as they come. Mort focuses not only on the worse than represented unemployment numbers, but the lower consumption, the lower confidence, and the overall much weaker economy than represented. "The government is addressing not the real economy but the confidence in the economy."
By Zero Hedge
New Anti-Bonus Law Passes House Panel (AIG, C)
New Anti-Bonus Law Passes House Panel (AIG, C)
Remember back in March when politicians were talking about banning bonuses or levying 90% taxes on them?
That died out, and for awhile, bonuses were out of the news. But AIG (AIG) is still dealing with compensation issues, and Citigroup's (C) Phibro unit has brought the subject back to the fore. And politicians haven't forgotten either.
Today, Barney Frank's house committee passed a new anti-bonus bill:
The bill, adopted 40-28 today, would allow agencies such as the Securities and Exchange Commission to prohibit compensation that encourages financial companies to take “inappropriate risks.” The House and Senate must pass the bill before the president signs it into law. The House may vote by July 31.
“There is a risk to the system when the incentive structure is huge,” Committee Chairman Barney Frank, a Massachusetts Democrat, said as the committee debated the legislation during a meeting in Washington.
Read the whole thing >
By Clusterstock
Remember back in March when politicians were talking about banning bonuses or levying 90% taxes on them?
That died out, and for awhile, bonuses were out of the news. But AIG (AIG) is still dealing with compensation issues, and Citigroup's (C) Phibro unit has brought the subject back to the fore. And politicians haven't forgotten either.
Today, Barney Frank's house committee passed a new anti-bonus bill:
The bill, adopted 40-28 today, would allow agencies such as the Securities and Exchange Commission to prohibit compensation that encourages financial companies to take “inappropriate risks.” The House and Senate must pass the bill before the president signs it into law. The House may vote by July 31.
“There is a risk to the system when the incentive structure is huge,” Committee Chairman Barney Frank, a Massachusetts Democrat, said as the committee debated the legislation during a meeting in Washington.
Read the whole thing >
By Clusterstock
High-Frequency Trading Is Not A Scandal
High-Frequency Trading Is Not A Scandal
I am a capitalist. I like competition in markets. Our competitive markets have resulted in evolution to the point where traders have written computer algorithms that do the job traders used to try to do by hand - profit from stock movements and from what they feel net supply and demand for a given stock is. This is the main reason I'm against most attacks on high frequency trading. SOMEONE will always be the best - the fastest - the closest - regardless of if you ban co-located servers, or install mandatory latency in order execution pipes. Would there be anything really wrong with making sure that all orders placed are valid for a 1/2 second or a full second? No, I don't think there would be - and that might be the kind of compromise that we move toward - but we need to recognize that the playing field will never be level. It never has been level and it never will be level - there is always someone smarter than you, and it would be a shame to try to legislate that edge away.
By The Business Insider
I am a capitalist. I like competition in markets. Our competitive markets have resulted in evolution to the point where traders have written computer algorithms that do the job traders used to try to do by hand - profit from stock movements and from what they feel net supply and demand for a given stock is. This is the main reason I'm against most attacks on high frequency trading. SOMEONE will always be the best - the fastest - the closest - regardless of if you ban co-located servers, or install mandatory latency in order execution pipes. Would there be anything really wrong with making sure that all orders placed are valid for a 1/2 second or a full second? No, I don't think there would be - and that might be the kind of compromise that we move toward - but we need to recognize that the playing field will never be level. It never has been level and it never will be level - there is always someone smarter than you, and it would be a shame to try to legislate that edge away.
By The Business Insider
Bashing Goldman Sachs Is Simply a Game for Fools: Michael Lewis
Bashing Goldman Sachs Is Simply a Game for Fools: Michael Lewis
For starters, the vampire squid doesn’t feed on human flesh. Ergo, no vampire squid would ever wrap itself around the face of humanity, except by accident. And nothing that happens at Goldman Sachs -- nothing that Goldman Sachs thinks, nothing that Goldman Sachs feels, nothing that Goldman Sachs does --ever happens by accident.
By Michael Lewis Bloomberg.com
For starters, the vampire squid doesn’t feed on human flesh. Ergo, no vampire squid would ever wrap itself around the face of humanity, except by accident. And nothing that happens at Goldman Sachs -- nothing that Goldman Sachs thinks, nothing that Goldman Sachs feels, nothing that Goldman Sachs does --ever happens by accident.
By Michael Lewis Bloomberg.com
Housing: 'Invest at the Point of Maximum Pessimism'
Housing: 'Invest at the Point of Maximum Pessimism'
Remember, when everybody thinks alike, the opposite is most likely to happen
US housing/real estate/construction sector commentary all appears to be from the same record. Just going around and around playing the same tunes again and again. Very few commentators appear to have looked beyond their groove and seen that perhaps we have already seen the bottom of the US housing market
From Seeking Alpha
Remember, when everybody thinks alike, the opposite is most likely to happen
US housing/real estate/construction sector commentary all appears to be from the same record. Just going around and around playing the same tunes again and again. Very few commentators appear to have looked beyond their groove and seen that perhaps we have already seen the bottom of the US housing market
From Seeking Alpha
Monday, July 27, 2009
Doug Kass- Negative on the Market-Here's Why
Doug Kass- Negative on the Market-Here's Why
Today's opening missive has another major change in our model portfolio, with a further increase in the cash component of the portfolio from 29% to 43%. I am further reducing both equity and credit exposure after a huge run in both asset classes.
The bear market argument (that I now endorse) is that we are seeing nothing more than a second derivative recovery and that owing to a temporary replenishment of inventories, the economy is only getting less worse (or getting better from a depressed level). From my perch, the ingredients for a durable and self-sustaining recovery are missing. An economic double-dip grows more likely in a climate of corporate cost cuts, which elevates jobless rates and leads to continued pressure on personal consumption expenditures. The bears reject Say's Law of Production and view consumer incomes and spending as driving business
By Doug Kass-Thestreet.com
Today's opening missive has another major change in our model portfolio, with a further increase in the cash component of the portfolio from 29% to 43%. I am further reducing both equity and credit exposure after a huge run in both asset classes.
The bear market argument (that I now endorse) is that we are seeing nothing more than a second derivative recovery and that owing to a temporary replenishment of inventories, the economy is only getting less worse (or getting better from a depressed level). From my perch, the ingredients for a durable and self-sustaining recovery are missing. An economic double-dip grows more likely in a climate of corporate cost cuts, which elevates jobless rates and leads to continued pressure on personal consumption expenditures. The bears reject Say's Law of Production and view consumer incomes and spending as driving business
By Doug Kass-Thestreet.com
10 Ways Google Is Trying To Kill Microsoft (GOOG, MSFT)
10 Ways Google Is Trying To Kill Microsoft (GOOG, MSFT)
Perhaps the most exciting tech battle to watch: Google's (GOOG) intensifying clash with fellow titan Microsoft (MSFT), as the two square off in almost every major line of business
From Silicon Alley Insider
Perhaps the most exciting tech battle to watch: Google's (GOOG) intensifying clash with fellow titan Microsoft (MSFT), as the two square off in almost every major line of business
From Silicon Alley Insider
Goldman Sachs is rolling in profits — and controversy
Goldman Sachs is rolling in profits — and controversy
Inside Goldman Sachs, America’s most successful, cynical, envied, despised, and (in its view, anyway) misunderstood engine of capitalism
In a long article by Joe Hagan in this week’s issue, New York magazine looks at how the Wall Street firm came to be seen as the “ugly essence of capitalism at its most cynical,” and how it is handling the criticism.
The article looks at a broad range of the issues surrounding Goldman — its government connections, its big profits so soon after repaying its TARP funds — but spends a considerable time on one transaction in particular. That’s the federal rescue of American International Group.
About $13 billion of the funds in the A.I.G. bailout ended up flowing to Goldman, which was on the other side of credit default swaps that the insurer had written.
By NY Times Dealbook
Inside Goldman Sachs, America’s most successful, cynical, envied, despised, and (in its view, anyway) misunderstood engine of capitalism
In a long article by Joe Hagan in this week’s issue, New York magazine looks at how the Wall Street firm came to be seen as the “ugly essence of capitalism at its most cynical,” and how it is handling the criticism.
The article looks at a broad range of the issues surrounding Goldman — its government connections, its big profits so soon after repaying its TARP funds — but spends a considerable time on one transaction in particular. That’s the federal rescue of American International Group.
About $13 billion of the funds in the A.I.G. bailout ended up flowing to Goldman, which was on the other side of credit default swaps that the insurer had written.
By NY Times Dealbook
Sunday, July 26, 2009
Re-designing the Wall Street Trader Compensation Model
Re-designing the Wall Street Trader Compensation Model
Bottom line, the current Wall Street trader compensation system stinks. It is terrible for shareholders. It is bad for long-term equity building. And it isn't that great for traders. Moving to a funded-book structure with long-term trader investment scheme would eliminate most of the bad aspects of the current model while bringing in some new, positive impacts. A radical change? Yes. A rational change? Absolutely
By Information Arbitrage
Bottom line, the current Wall Street trader compensation system stinks. It is terrible for shareholders. It is bad for long-term equity building. And it isn't that great for traders. Moving to a funded-book structure with long-term trader investment scheme would eliminate most of the bad aspects of the current model while bringing in some new, positive impacts. A radical change? Yes. A rational change? Absolutely
By Information Arbitrage
Clouds are gathering over the venture capital industry
Clouds are gathering over the venture capital industry
Think about that: Just 10 firms raising and investing the bulk of VC dollars. It would represent a radical contraction of the industry we see now sprawled across Sand Hill Road.
As gloomy as things are, this is all going to take a while to unfold. The shakeout will be more of a slow-motion train wreck rather than an outright collapse. A firm here, a firm there will close its doors. These funds measure their returns over five to 10 years, and many still have sizable sums committed from investors.
From SiliconValley.com
Think about that: Just 10 firms raising and investing the bulk of VC dollars. It would represent a radical contraction of the industry we see now sprawled across Sand Hill Road.
As gloomy as things are, this is all going to take a while to unfold. The shakeout will be more of a slow-motion train wreck rather than an outright collapse. A firm here, a firm there will close its doors. These funds measure their returns over five to 10 years, and many still have sizable sums committed from investors.
From SiliconValley.com
Goldman Sachs and high-frequency trading -more evidence
Goldman Sachs and high-frequency trading -more evidence
It is the hot new thing on Wall Street, a way for a handful of traders to master the stock market, peek at investors’ orders and, critics say, even subtly manipulate share prices.
It is called high-frequency trading — and it is suddenly one of the most talked-about and mysterious forces in the markets [...]
Nearly everyone on Wall Street is wondering how hedge funds and large banks like Goldman Sachs are making so much money so soon after the financial system nearly collapsed. High-frequency trading is one answer.
And when a former Goldman Sachs programmer was accused this month of stealing secret computer codes — software that a federal prosecutor said could “manipulate markets in unfair ways” — it only added to the mystery. Goldman acknowledges that it profits from high-frequency trading, but disputes that it has an unfair advantage.
Yet high-frequency specialists clearly have an edge over typical traders, let alone ordinary investors. The Securities and Exchange Commission says it is examining certain aspects of the strategy.
By Crooks and Liars
It is the hot new thing on Wall Street, a way for a handful of traders to master the stock market, peek at investors’ orders and, critics say, even subtly manipulate share prices.
It is called high-frequency trading — and it is suddenly one of the most talked-about and mysterious forces in the markets [...]
Nearly everyone on Wall Street is wondering how hedge funds and large banks like Goldman Sachs are making so much money so soon after the financial system nearly collapsed. High-frequency trading is one answer.
And when a former Goldman Sachs programmer was accused this month of stealing secret computer codes — software that a federal prosecutor said could “manipulate markets in unfair ways” — it only added to the mystery. Goldman acknowledges that it profits from high-frequency trading, but disputes that it has an unfair advantage.
Yet high-frequency specialists clearly have an edge over typical traders, let alone ordinary investors. The Securities and Exchange Commission says it is examining certain aspects of the strategy.
By Crooks and Liars
Saturday, July 25, 2009
You cannot create prosperity through printing money and debt growth-by Mark Faber
“You cannot create prosperity through money printing and debt growth.”
Speaking to the 10th Annual Agora Financial Investment Symposium in Vancouver this week, Faber said: “You cannot create prosperity through money printing and debt growth.”Faber preached an idea that became the theme of the event: Government fiscal and monetary intervention, “can postpone, but not prevent crisis.“I believe next year’s economy will face even larger deficits. Their deficit is attempting to stimulate credit growth. Unless real credit growth returns, they will have to put more and more money into the system to maintain the status quo. All polices target consumption. That is a mistake,” Faber said.So what’s this mean for the market? “The S&P 500 will not recover to 2007 highs. At the peak, 44% of the S&P was the financial sector. That is gone… not coming back.”"In the period, 2001–2007, the Fed managed to do something that had never before been done – create a worldwide bubble in just about everything. Stocks, bonds, art, oil, housing – you name it; it went up. The only thing that didn't go up was the dollar," Faber said.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
By Mark Faber
Speaking to the 10th Annual Agora Financial Investment Symposium in Vancouver this week, Faber said: “You cannot create prosperity through money printing and debt growth.”Faber preached an idea that became the theme of the event: Government fiscal and monetary intervention, “can postpone, but not prevent crisis.“I believe next year’s economy will face even larger deficits. Their deficit is attempting to stimulate credit growth. Unless real credit growth returns, they will have to put more and more money into the system to maintain the status quo. All polices target consumption. That is a mistake,” Faber said.So what’s this mean for the market? “The S&P 500 will not recover to 2007 highs. At the peak, 44% of the S&P was the financial sector. That is gone… not coming back.”"In the period, 2001–2007, the Fed managed to do something that had never before been done – create a worldwide bubble in just about everything. Stocks, bonds, art, oil, housing – you name it; it went up. The only thing that didn't go up was the dollar," Faber said.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world. Dr. Doom also trades currencies and commodity futures like Gold and Oil.
By Mark Faber
Where Goldman Really Makes Its Money
Where Goldman Really Makes Its Money
We still don't know the truth behind Goldman Sachs' trading profits.
By Forbes.com
We still don't know the truth behind Goldman Sachs' trading profits.
By Forbes.com
Commercial Real Estate Cataclysm Underway?
Commercial Real Estate Cataclysm Underway?
Thursday's results of the Moody’s/REAL Commercial Property Index strongly suggests that the nation’s commercial real estate markets are now firmly experiencing a tremendous downturn with prices plummeting a whopping 28.53% on a year-over-year basis and a stunning 34.83% since the peak set in October 2007.
By Seeking Alpha
Thursday's results of the Moody’s/REAL Commercial Property Index strongly suggests that the nation’s commercial real estate markets are now firmly experiencing a tremendous downturn with prices plummeting a whopping 28.53% on a year-over-year basis and a stunning 34.83% since the peak set in October 2007.
By Seeking Alpha
Friday, July 24, 2009
Commercial Mortgage Portfolios and America's Banks: Is the Sky Falling?
Commercial Mortgage Portfolios and America's Banks: Is the Sky Falling?
According to an analysis by the WSJ, the 8,000 U.S. banks that are still around (57 less than at the start of the year) are taking write-downs on their commercial mortgage portfolios at the quickest rate in 20 years. They estimate that losses on these loans could hit the $30BN mark by year end. This number should be measured against a total value of $6.7TN, or 13% of America’s GDP. In the second quarter alone, delinquencies equaled 4.3% - a number more than twice that seen in the same period last year.
By Seeking Alpha
According to an analysis by the WSJ, the 8,000 U.S. banks that are still around (57 less than at the start of the year) are taking write-downs on their commercial mortgage portfolios at the quickest rate in 20 years. They estimate that losses on these loans could hit the $30BN mark by year end. This number should be measured against a total value of $6.7TN, or 13% of America’s GDP. In the second quarter alone, delinquencies equaled 4.3% - a number more than twice that seen in the same period last year.
By Seeking Alpha
Zillow, Trulia and More: Sizing Up Housing Sites
Zillow, Trulia and More: Sizing Up Housing Sites
To get a better handle on their local markets, more homeowners and potential buyers are turning to real estate web sites for their appraisals. These sites prompt users for a residential address and then spit out a price or range of prices indicating how much that home is worth. Visits to Zillow.com came in at 4.1 million last month, up 55% over the same time last year, according to Nielsen. Trulia, which offers listing information, saw a 37% increase over the same period, and Yahoo Real Estate, which offers home value estimates from Zillow.com and Eppraisal.com, saw its traffic rise 20%
From Smart Money
To get a better handle on their local markets, more homeowners and potential buyers are turning to real estate web sites for their appraisals. These sites prompt users for a residential address and then spit out a price or range of prices indicating how much that home is worth. Visits to Zillow.com came in at 4.1 million last month, up 55% over the same time last year, according to Nielsen. Trulia, which offers listing information, saw a 37% increase over the same period, and Yahoo Real Estate, which offers home value estimates from Zillow.com and Eppraisal.com, saw its traffic rise 20%
From Smart Money
Buffett’s Goldman Stake Pays Richly
Buffett’s Goldman Stake Pays Richly
Warren E. Buffett showed again why he is known as one of the world’s best investors, thanks in part to another prominent investor, Goldman Sachs.
Mr. Buffett’s stake in Goldman is now worth $9.1 billion, or about $4.1 billion more than what he paid 10 months ago, according to an analysis by Linus Wilson, an assistant professor of finance at the University of Louisiana at Lafayette.
Ny The New York Times Dealbook
Warren E. Buffett showed again why he is known as one of the world’s best investors, thanks in part to another prominent investor, Goldman Sachs.
Mr. Buffett’s stake in Goldman is now worth $9.1 billion, or about $4.1 billion more than what he paid 10 months ago, according to an analysis by Linus Wilson, an assistant professor of finance at the University of Louisiana at Lafayette.
Ny The New York Times Dealbook
Traders Profit With Computers Set at High Speed
Traders Profit With Computers Set at High Speed
It is the hot new thing on Wall Street, a way for a handful of traders to master the stock market, peek at investors’ orders and, critics say, even subtly manipulate share prices
It is called high-frequency trading — and it is suddenly one of the most talked-about and mysterious forces in the markets.
By The New York Times Business
It is the hot new thing on Wall Street, a way for a handful of traders to master the stock market, peek at investors’ orders and, critics say, even subtly manipulate share prices
It is called high-frequency trading — and it is suddenly one of the most talked-about and mysterious forces in the markets.
By The New York Times Business
Thursday, July 23, 2009
Referrals Help
I would really appreciate your help today. Im trying to grow my readership. Can you please forward today's email to 5 people, and ask them to sign up if interested. Thanks VERY MUCH and greatly appreciated!
Wednesday, July 22, 2009
The Joy of Sachs
The Joy of Sachs
The American economy remains in dire straits, with one worker in six unemployed or underemployed. Yet Goldman Sachs just reported record quarterly profits — and it’s preparing to hand out huge bonuses, comparable to what it was paying before the crisis. What does this contrast tell us?
By Paul Krugman NY Times
The American economy remains in dire straits, with one worker in six unemployed or underemployed. Yet Goldman Sachs just reported record quarterly profits — and it’s preparing to hand out huge bonuses, comparable to what it was paying before the crisis. What does this contrast tell us?
By Paul Krugman NY Times
Home Prices and the Stock Market
Home Prices and the Stock Market
The following chart shows the behavior of the median sales price for existing homes in the U.S. and annual closing levels of the S&P 500 Index over the entire sample period. Both series generally increase, home prices much more smoothly than stock prices. The average annual increase for home (stock) prices is 6.0% (7.1%), and the standard deviation of annual changes in home (stock) prices is 4.7% (17.6%). The housing price bubble emerges in the last six years of data. Visual inspection is unhelpful in discovering any specific relationship between median home price and stock index level.
From Advisory Group LLC Blog
The following chart shows the behavior of the median sales price for existing homes in the U.S. and annual closing levels of the S&P 500 Index over the entire sample period. Both series generally increase, home prices much more smoothly than stock prices. The average annual increase for home (stock) prices is 6.0% (7.1%), and the standard deviation of annual changes in home (stock) prices is 4.7% (17.6%). The housing price bubble emerges in the last six years of data. Visual inspection is unhelpful in discovering any specific relationship between median home price and stock index level.
From Advisory Group LLC Blog
Moody's Commercial Real Estate Scorecard Accelerates To Downside
Moody's Commercial Real Estate Scorecard Accelerates To Downside
The downward spiral in commercial real estate market fundamentals has accelerated as the recession persists, Moody's Investors Service says in its latest Red-Yellow-Green study.For the first time in six years, none of the seven property types tracked by Moody's has a "green" or strong score, while four of the property types are at levels of weakness unmatched in the almost 10-year history of the study. The two hotel sectors--full service and limited service--continued to post lowest possible scores of 0 during the first quarter, while the industrial sector recorded its all-time worst score as it fell into red territory.
From Mish's Global Analysis
The downward spiral in commercial real estate market fundamentals has accelerated as the recession persists, Moody's Investors Service says in its latest Red-Yellow-Green study.For the first time in six years, none of the seven property types tracked by Moody's has a "green" or strong score, while four of the property types are at levels of weakness unmatched in the almost 10-year history of the study. The two hotel sectors--full service and limited service--continued to post lowest possible scores of 0 during the first quarter, while the industrial sector recorded its all-time worst score as it fell into red territory.
From Mish's Global Analysis
Tuesday, July 21, 2009
NY Retail Vacancies Spike
NY Retail Vacancies Spike
The storefront vacancy rate in Manhattan is now at its highest point since the early 1990s — an estimated 6.5 percent — and is expected to exceed 10 percent by the middle of next year, according to data gathered by Marcus & Millichap Research Services, a national real estate investment brokerage based in Encino, Calif.
And those numbers do not capture the full story. Some of the more desirable shopping districts are littered with empty storefronts. For example, Fifth Avenue between 42nd Street and 49th Street, the stretch just south of Saks Fifth Avenue, has a vacancy rate of 15.3 percent, according to the brokerage Cushman & Wakefield.
By Clusterstock
The storefront vacancy rate in Manhattan is now at its highest point since the early 1990s — an estimated 6.5 percent — and is expected to exceed 10 percent by the middle of next year, according to data gathered by Marcus & Millichap Research Services, a national real estate investment brokerage based in Encino, Calif.
And those numbers do not capture the full story. Some of the more desirable shopping districts are littered with empty storefronts. For example, Fifth Avenue between 42nd Street and 49th Street, the stretch just south of Saks Fifth Avenue, has a vacancy rate of 15.3 percent, according to the brokerage Cushman & Wakefield.
By Clusterstock
Fiduciary Standard Endorsed by Wall Street
Fiduciary Standard Endorsed by Wall Street
An utterly improbable thing occurred last week when Wall Street endorsed the fiduciary standard for brokers. This is certainly a sea change for investors. A fiduciary standard similar to that which governs so-called “financial advisors” is something I’ve advocated for years. The new standard forces brokers to put customer interests ahead of their own, which seems logical enough even though up until now Wall Street fought against the issue tooth and nail.
By Seeking Alpha
An utterly improbable thing occurred last week when Wall Street endorsed the fiduciary standard for brokers. This is certainly a sea change for investors. A fiduciary standard similar to that which governs so-called “financial advisors” is something I’ve advocated for years. The new standard forces brokers to put customer interests ahead of their own, which seems logical enough even though up until now Wall Street fought against the issue tooth and nail.
By Seeking Alpha
Faber Expects a Total Collapse
Faber Expects a Total Collapse
We had a crisis and nothing has been solved ... usually, a major crisis like we had should clean the system but nothing has been cleaned. It's gotten worse politically - this linkage between politicians in America and the Federal Reserve, Treasury Department, and Wall Street. The big crisis is yet to come. It will be huge. it will be a total collapse
By Seking Alpha
We had a crisis and nothing has been solved ... usually, a major crisis like we had should clean the system but nothing has been cleaned. It's gotten worse politically - this linkage between politicians in America and the Federal Reserve, Treasury Department, and Wall Street. The big crisis is yet to come. It will be huge. it will be a total collapse
By Seking Alpha
Monday, July 20, 2009
Rich Harvard, Poor Harvard
Rich Harvard, Poor Harvard
Only a year ago, Harvard had a $36.9 billion endowment, the largest in academia. Now that endowment has imploded, and the university faces the worst financial crisis in its 373-year history. Could the same lethal mix of uncurbed expansion, colossal debt, arrogance, and mismanagement that ravaged Wall Street bring down America’s most famous university? And how much of the turmoil is the fault of former Harvard president Larry Summers, now a top economic adviser to President Obama? As students demonstrate, administrators impose Draconian cuts, and construction is halted on an over-ambitious $1.2 billion science complex, the author follows the finger-pointing.
By Vanity Fair
Only a year ago, Harvard had a $36.9 billion endowment, the largest in academia. Now that endowment has imploded, and the university faces the worst financial crisis in its 373-year history. Could the same lethal mix of uncurbed expansion, colossal debt, arrogance, and mismanagement that ravaged Wall Street bring down America’s most famous university? And how much of the turmoil is the fault of former Harvard president Larry Summers, now a top economic adviser to President Obama? As students demonstrate, administrators impose Draconian cuts, and construction is halted on an over-ambitious $1.2 billion science complex, the author follows the finger-pointing.
By Vanity Fair
Commercial Loans Going Bad At Staggering Pace
Commercial Loans Going Bad At Staggering Pace
U.S. banks have been charging off soured commercial mortgages at the fastest pace in nearly 20 years, according to an analysis by The Wall Street Journal. At that rate, losses on loans used to finance offices, shopping malls, hotels, apartments and other commercial property could reach about $30 billion by the end of 2009
By Clusterstock
U.S. banks have been charging off soured commercial mortgages at the fastest pace in nearly 20 years, according to an analysis by The Wall Street Journal. At that rate, losses on loans used to finance offices, shopping malls, hotels, apartments and other commercial property could reach about $30 billion by the end of 2009
By Clusterstock
Porter Stansberry predicts the next major company to go bust- GE
Porter Stansberry predicts the next major company to go bust- GE
We've become slightly famous for accurately predicting the demise of several iconic America companies, including the original AT&T, GM, Fannie Mae, Freddie Mac, and (though it hasn't happened yet) Continental Airlines. We may have another business to add to the list: General Electric.
By The Daily Crux
We've become slightly famous for accurately predicting the demise of several iconic America companies, including the original AT&T, GM, Fannie Mae, Freddie Mac, and (though it hasn't happened yet) Continental Airlines. We may have another business to add to the list: General Electric.
By The Daily Crux
Sunday, July 19, 2009
Friday, July 17, 2009
Mark Cuban's Daring Victory Against The SEC
Mark Cuban's Daring Victory Against The SEC
Mark Cuban may have earned himself a permanent place in the history of financial regulation today. Unlike most people accused of insider trading by the SEC, Cuban had the wherewithal and the will to fight back in a highly unconventional way. Cuban didn’t try to deny the facts alleged by the SEC. He challenged the SEC’s legal theory, arguing that trading on information he got from the CEO of Mamma.com was perfectly legitimate.
By Clusterstock
Mark Cuban may have earned himself a permanent place in the history of financial regulation today. Unlike most people accused of insider trading by the SEC, Cuban had the wherewithal and the will to fight back in a highly unconventional way. Cuban didn’t try to deny the facts alleged by the SEC. He challenged the SEC’s legal theory, arguing that trading on information he got from the CEO of Mamma.com was perfectly legitimate.
By Clusterstock
Mercedes Benz- now 25% off
This is the best time ever to buy a 2009 Mercedes. They are 25% off for 2009 models especially E350, ML, and E-station wagons. In fact, they are discontinuing E station wagons and they are reduced from $61,000 to $ 43,ooo! These deals are too good to pass up if you are in the market for a car.
Energy Investing: Natural Gas Looks Especially Interesting
Energy Investing: Natural Gas Looks Especially Interesting
This will be helpful to the economies of the world during this time of worldwide recessions, but it will also set the stage for a "big reversal in the price of NG" in 2010 and 2011. In fact, Gammel predicts that the price of NG will soar up to "the $8s" next year from the lows that we will experience later this summer and fall.
If that does happen, it isn't hard to see that NG is one of the most compelling investment themes over the next year or two, even more exciting than silver, which I believe is likely to double from whatever low is established between now and November of 2009.
From Seeking Alpha
This will be helpful to the economies of the world during this time of worldwide recessions, but it will also set the stage for a "big reversal in the price of NG" in 2010 and 2011. In fact, Gammel predicts that the price of NG will soar up to "the $8s" next year from the lows that we will experience later this summer and fall.
If that does happen, it isn't hard to see that NG is one of the most compelling investment themes over the next year or two, even more exciting than silver, which I believe is likely to double from whatever low is established between now and November of 2009.
From Seeking Alpha
Analysts Suddenly Notice The Bomb Inside GE Capital (GE)
Analysts Suddenly Notice The Bomb Inside GE Capital (GE)
In April, when concerns about the real estate first surfaced, Steve Eisman of FrontPoint wrote a detailed analysis concluding that the company has $40-$45 billion of embedded losses in its commercial real-estate portfolio.
If these losses were taken all at once, they would wipe out the company. As it is, they'll likely weigh on GE's earnings for years
By Clusterstock
In April, when concerns about the real estate first surfaced, Steve Eisman of FrontPoint wrote a detailed analysis concluding that the company has $40-$45 billion of embedded losses in its commercial real-estate portfolio.
If these losses were taken all at once, they would wipe out the company. As it is, they'll likely weigh on GE's earnings for years
By Clusterstock
As Bank Bonuses Swell, Congress Gets Bill on Pay
As Bank Bonuses Swell, Congress Gets Bill on Pay
With the smell of fat bonus checks wafting down Wall Street, the Obama administration and Democrats in Congress on Thursday moved closer to a clampdown on U.S. corporate executive pay
By Dealbook
With the smell of fat bonus checks wafting down Wall Street, the Obama administration and Democrats in Congress on Thursday moved closer to a clampdown on U.S. corporate executive pay
By Dealbook
Thursday, July 16, 2009
Natural Gas: Bridge to the Energy Future
Natural Gas: Bridge to the Energy Future
US natural gas resources and attendant reserves are, again, a strategic opportunity for the US and for investors. It is becoming clearer every quarter that not only are US natural gas resources much greater than imagined even 5 years ago, but reserves have the potential to increase steadily for many years, if market incentives exist
From Seeking Alpha
US natural gas resources and attendant reserves are, again, a strategic opportunity for the US and for investors. It is becoming clearer every quarter that not only are US natural gas resources much greater than imagined even 5 years ago, but reserves have the potential to increase steadily for many years, if market incentives exist
From Seeking Alpha
Among DB's New Offerings: U.S. Carbon Efficient ETF
Among DB's New Offerings: U.S. Carbon Efficient ETF
Among the 30 new exchange-traded products Deutsche Bank plans to launch through its db x-trackers unit in 2009 is a proposed fund that would track the S&P Carbon Efficient Index, a benchmark based on the performance of large-cap U.S. companies with relatively low carbon emissions while seeking to replicate the return of the S&P 500.
“This is the first time that investors have had the opportunity to track the S&P 500 with a 50% lower Carbon Footprint and 60% lower greenhouse gas emissions,” said Db x-trackers UK head Manooj Mistry.
By Seeking Alpha
Among the 30 new exchange-traded products Deutsche Bank plans to launch through its db x-trackers unit in 2009 is a proposed fund that would track the S&P Carbon Efficient Index, a benchmark based on the performance of large-cap U.S. companies with relatively low carbon emissions while seeking to replicate the return of the S&P 500.
“This is the first time that investors have had the opportunity to track the S&P 500 with a 50% lower Carbon Footprint and 60% lower greenhouse gas emissions,” said Db x-trackers UK head Manooj Mistry.
By Seeking Alpha
Accidental Billionaires
Accidental Billionaires
The idea for Facebook made Mark Zuckerberg rich for life, but a new book by Ben Mezrich argues he did it the old-fashioned way—he stole it.
Why did Saverin and Zuckerberg start Facebook? For the same reason anyone does anything in this book—to get laid.
By The Daily Beast
The idea for Facebook made Mark Zuckerberg rich for life, but a new book by Ben Mezrich argues he did it the old-fashioned way—he stole it.
Why did Saverin and Zuckerberg start Facebook? For the same reason anyone does anything in this book—to get laid.
By The Daily Beast
Wednesday, July 15, 2009
How Pay At Goldman Really Works
How Pay At Goldman Really Works
But Goldman is not an egalitarian institution, and it is certainly not going to be dividing that money up in a way that will see each of its 29,400 get anywhere near a million bucks. Instead, many employees will be paid tens of thousands of dollars, thousands will get hundreds of thousands, and an elite few will be eye-popping figures. The biggest hitters get to eat the most pie.
By Clusterstock
But Goldman is not an egalitarian institution, and it is certainly not going to be dividing that money up in a way that will see each of its 29,400 get anywhere near a million bucks. Instead, many employees will be paid tens of thousands of dollars, thousands will get hundreds of thousands, and an elite few will be eye-popping figures. The biggest hitters get to eat the most pie.
By Clusterstock
Winning a property-tax reduction on your home
Winning a property-tax reduction on your home
Communities are feeling the sting of tumbling property values as more taxpayers appeal their assessments -- and successfully lower their tax liabilities
By -Marketwatch.com
Communities are feeling the sting of tumbling property values as more taxpayers appeal their assessments -- and successfully lower their tax liabilities
By -Marketwatch.com
Golfing and Investing
I'm a golfer, and one of the things I love about it is that you can play the same course 20 days in a row and every day will be different. It just rained, or it's hot, or the wind is blowing from a different direction. You have to adjust all the time for a lot of changing factors, which is also true of investing. People who really love to invest wouldn't have it any other way." -
By Robert Lietzow
By Robert Lietzow
Tuesday, July 14, 2009
Fox Biz: How Madoff Will Be Killed In Jail (CLIP)
Fox Biz: How Madoff Will Be Killed In Jail (CLIP)
Larry Levine of Wall Street Prison Consultants laid out Bernie Madoff's grizzly demise today on Fox Business.
How's it going to go down? Some international banker who was burned by Madoff will peel off a few million dollars, give it to the family of an Butner inmate. Then, a distraction will be made in the dining hall, during the commotion--BOOM!--Madoff is getting stabbed.
"I see Bernie leaving in a bag or a box," says Levine. So much for Butner being the "crown jewel of the prison system."
By Clusterstock
Larry Levine of Wall Street Prison Consultants laid out Bernie Madoff's grizzly demise today on Fox Business.
How's it going to go down? Some international banker who was burned by Madoff will peel off a few million dollars, give it to the family of an Butner inmate. Then, a distraction will be made in the dining hall, during the commotion--BOOM!--Madoff is getting stabbed.
"I see Bernie leaving in a bag or a box," says Levine. So much for Butner being the "crown jewel of the prison system."
By Clusterstock
Goldman Might Be A Pretty Crappy Stock Broker
Goldman Might Be A Pretty Crappy Stock Broker
Clients of the Goldman Sachs wealth management business may be hurting more than most. Over the past year, the equities category of the assets Goldman manages for clients declined 43%. That far outpaces the decline in the S&P 500 over the period (down 28%) and is dwarfed by gains Goldman made by trading stocks for its own account.
By Clusterstock
Clients of the Goldman Sachs wealth management business may be hurting more than most. Over the past year, the equities category of the assets Goldman manages for clients declined 43%. That far outpaces the decline in the S&P 500 over the period (down 28%) and is dwarfed by gains Goldman made by trading stocks for its own account.
By Clusterstock
Commercial Property Bust Threatens U.S. Banks
Commercial Property Bust Threatens U.S. Banks
Outlook. As commercial property tends to lag the U.S. housing market by a full year, and price declines in commercial real estate are accelerating, this market is unlikely to bottom out before late 2010. This would threaten the solvency and stability of scores of regional banks, likely require a federal bailout, and reduce the pace of what is likely to be an anemic economic recovery late this year and in early 2010
By Forbes.com
Outlook. As commercial property tends to lag the U.S. housing market by a full year, and price declines in commercial real estate are accelerating, this market is unlikely to bottom out before late 2010. This would threaten the solvency and stability of scores of regional banks, likely require a federal bailout, and reduce the pace of what is likely to be an anemic economic recovery late this year and in early 2010
By Forbes.com
Monday, July 13, 2009
Goldman's Fast Money
Goldman's Fast Money
Why is the Wall Street giant about to report $2 billion in profits, when others are flailing? Charlie Gasparino reveals the firm’s gunslingers were risking taxpayer money to chase a windfall.
By Charlie Gasparino The Daily Beast
Why is the Wall Street giant about to report $2 billion in profits, when others are flailing? Charlie Gasparino reveals the firm’s gunslingers were risking taxpayer money to chase a windfall.
By Charlie Gasparino The Daily Beast
The Coming Nantucket Real Estate Crash
The Coming Nantucket Real Estate Crash
Some analysts think the high-end will be the next segment of the real-estate market to crash. And the situation on Nantucket certainly supports this view
By Henry Blogett The Business Insider
Some analysts think the high-end will be the next segment of the real-estate market to crash. And the situation on Nantucket certainly supports this view
By Henry Blogett The Business Insider
Most Overbought and Oversold ETFs
Most Overbought and Oversold ETFs
After the market's recent pullback, most equity ETFs are trading below their 50-day moving averages. Below we highlight the key ETFs that are currently trading the furthest above and below their 50-days. As shown, the Financial Preferred ETF (PGF) is the furthest above its 50-day (+5.84%), followed by the Yen (FXY), Long-Term Bonds (BLV), and Biotech (BBH). The majority of ETFs trading above their 50-days are Fixed Income related, while the majority trading below are equity related. This is a much different picture from a few weeks ago when bonds were tanking and equities were rallying. The Natural Gas ETF (UNG) is trading the furthest below its 50-day at -16%. UNG is followed by Russia (RSX), Oil and Gas Exploration (XOP), and Emerging Markets Europe (GUR).
From Seeking Alpha
After the market's recent pullback, most equity ETFs are trading below their 50-day moving averages. Below we highlight the key ETFs that are currently trading the furthest above and below their 50-days. As shown, the Financial Preferred ETF (PGF) is the furthest above its 50-day (+5.84%), followed by the Yen (FXY), Long-Term Bonds (BLV), and Biotech (BBH). The majority of ETFs trading above their 50-days are Fixed Income related, while the majority trading below are equity related. This is a much different picture from a few weeks ago when bonds were tanking and equities were rallying. The Natural Gas ETF (UNG) is trading the furthest below its 50-day at -16%. UNG is followed by Russia (RSX), Oil and Gas Exploration (XOP), and Emerging Markets Europe (GUR).
From Seeking Alpha
CHART OF THE DAY: Business Magazines Head For The Abyss
CHART OF THE DAY: Business Magazines Head For The Abyss
The big business magazines are tanking along with the economy. McGraw-Hill is trying to dump BusinessWeek while it still can. Earlier, Condé Nast pulled the plug on Portfolio. And Forbes has shed a large portion of its staff this year.
In Q2, magazine ad revenue dropped an average 22% year-over-year, according to the Magazine Publishers of America. The big business mags had it even worse: BusinessWeek was down 30%, Forbes down 35%, and Fortune down 43%. Even the Economist, which has outperformed its peers in recent years, was down 20%. (Subscription revenue and online revenue -- the lone source of growth for many publications -- is not included in these tallies.)
From Silicon Alley Insider
The big business magazines are tanking along with the economy. McGraw-Hill is trying to dump BusinessWeek while it still can. Earlier, Condé Nast pulled the plug on Portfolio. And Forbes has shed a large portion of its staff this year.
In Q2, magazine ad revenue dropped an average 22% year-over-year, according to the Magazine Publishers of America. The big business mags had it even worse: BusinessWeek was down 30%, Forbes down 35%, and Fortune down 43%. Even the Economist, which has outperformed its peers in recent years, was down 20%. (Subscription revenue and online revenue -- the lone source of growth for many publications -- is not included in these tallies.)
From Silicon Alley Insider
Saturday, July 11, 2009
Legendary Billionaire Parties
Legendary Billionaire Parties
The richest people in the world often drop millions on swanky food, pricey champagne and A-list entertainment when they have a party.
By Forbes.com
The richest people in the world often drop millions on swanky food, pricey champagne and A-list entertainment when they have a party.
By Forbes.com
There’s More Than One Way to Play Real Estate ETFs
There’s More Than One Way to Play Real Estate ETFs
Are you looking into real estate but wary about purchasing a physical home? MacroShares recently introduced two new exchange traded funds (ETFs) that allow an investor to trade on the ups and downs of the housing market.
By ETF Trends
Are you looking into real estate but wary about purchasing a physical home? MacroShares recently introduced two new exchange traded funds (ETFs) that allow an investor to trade on the ups and downs of the housing market.
By ETF Trends
Extremely Bullish Scenario for Commodities
Extremely Bullish Scenario For Commodities
"According to such renowned market experts as author and investing icon Jim Rogers, a number of “wild cards” are in place this time around, meaning this bull market in commodities may have a lot more room to run than its more-typical predecessors. Three factors in particular are extremely bullish for commodities investors:Global Infrastructure Spending: The Organization for Economic Cooperation and Development (OECD) last year estimated that worldwide investments in power-generation, water and transportation infrastructure projects would exceed $40 trillion by 2030 - and that was before countries around the world enacted hundreds of billions of dollars in stimulus-spending programs.Improving Worldwide Living Standards: About half the world’s 6.7 billion inhabitants are simultaneously pushing to improve their living standards, a fact that by itself stands to create a commodities demand shock never before seen - enough by itself, in fact, to extend the secular commodities bull by five additional years.Modernization Efforts in Major Markets: The modernization initiatives in China, India, Brazil, Eastern Europe and other portions of Asia are extremely bullish for commodities prices.So if you’re looking for a place to stash your cash for the next 12-15 years, look no further: Commodities are the key profit play to make." in NuWire Investor
By Jim Rogers blog
Friday, July 10, 2009
Could Merritt Graves be the next Ken Griffin?
Could Merritt Graves be the next Ken Griffin?
He is hardly the first hedge fund manager to start young. Renowned investor Michael Steinhardt began trading when he was 13. Kenneth Griffin, who founded Citadel Investment Group when he was 22, famously began trading out of his dorm room at Harvard University. And Warren Lichtenstein launched activist fund Steel Partners when he was 24. But unlike Graves, all three attended Ivy League institutions. Steinhardt and Lichtenstein worked for other firms, albeit briefly, before going it alone. Griffin was backed by a well-known fund of funds and also had the luck to start his firm in the 1990s, when the hedge fund industry was embarking on a period of rapid asset growth.
By Traders Narrative
He is hardly the first hedge fund manager to start young. Renowned investor Michael Steinhardt began trading when he was 13. Kenneth Griffin, who founded Citadel Investment Group when he was 22, famously began trading out of his dorm room at Harvard University. And Warren Lichtenstein launched activist fund Steel Partners when he was 24. But unlike Graves, all three attended Ivy League institutions. Steinhardt and Lichtenstein worked for other firms, albeit briefly, before going it alone. Griffin was backed by a well-known fund of funds and also had the luck to start his firm in the 1990s, when the hedge fund industry was embarking on a period of rapid asset growth.
By Traders Narrative
Swimsuits That Changed the World
Swimsuits That Changed the World
From Bettie Page’s sexy leopard print to the bikinis of James Bond girls, VIEW OUR GALLERY of the most infamous and iconic bathing suits in history
By The Daily Beast
From Bettie Page’s sexy leopard print to the bikinis of James Bond girls, VIEW OUR GALLERY of the most infamous and iconic bathing suits in history
By The Daily Beast
Buffett Says 2nd Stimulus Might Be Needed
Buffett Says 2nd Stimulus Might Be Needed
Mr. Buffett, the billionaire founder of Berkshire Hathaway, told ABC’s “Good Morning America” that Americans suffered “a shock to the system” from the economic difficulties in the final quarter of last year but had started to rebound.
“We’re not in a freefall, but we’re not in a recovery either,” he said in the interview. “We were in a freefall really in the last quarter of last year, starting in the financial markets and spreading to the economy, and we had this huge change in behavior.”
By The New York Times Dealbook
Mr. Buffett, the billionaire founder of Berkshire Hathaway, told ABC’s “Good Morning America” that Americans suffered “a shock to the system” from the economic difficulties in the final quarter of last year but had started to rebound.
“We’re not in a freefall, but we’re not in a recovery either,” he said in the interview. “We were in a freefall really in the last quarter of last year, starting in the financial markets and spreading to the economy, and we had this huge change in behavior.”
By The New York Times Dealbook
Thursday, July 9, 2009
Kass: The Case for a Summer Snooze Fest
Kass: The Case for a Summer Snooze Fest
By Doug Kass Thestreet.com
By Doug Kass Thestreet.com
Remember Subprime? It's Back
Remember Subprime? It's Back
Sure, the waves of subprime foreclosures have subsided, but now those homes are held by subprime bondholders, and they're eager to wash their hands of the highly-distressed properties:
From Clusterstock
Sure, the waves of subprime foreclosures have subsided, but now those homes are held by subprime bondholders, and they're eager to wash their hands of the highly-distressed properties:
From Clusterstock
Gold prices are poised for a spectacular and prolonged rally as the recession deepens and investors finally become disillusioned with the U.S. dollar.
Gold prices are poised for a spectacular and prolonged rally as the recession deepens and investors finally become disillusioned with the U.S. dollar. So says renowned Wall Street financial forecaster and economist Peter Schiff
By Peter Schiff Blog
By Peter Schiff Blog
Apartment Vacancies Cause New Nightmare in U.S. Housing Collapse
Apartment Vacancies Cause New Nightmare in U.S. Housing Collapse
On the same day that CNN published a piece showing that U.S. banks are only pretending to help U.S. homeowners avoid foreclosure, it also published a story showing that U.S. apartment vacancies just hit a 20-year high, and are on pace to soon hit an all-time record
By Seeking Alpha
On the same day that CNN published a piece showing that U.S. banks are only pretending to help U.S. homeowners avoid foreclosure, it also published a story showing that U.S. apartment vacancies just hit a 20-year high, and are on pace to soon hit an all-time record
By Seeking Alpha
Wednesday, July 8, 2009
See the view from the Sears Tower in Chicago via Gigapan
See the view from the Sears Tower in Chicago via Gigapan
Zoom in to see any building.Amazing.
By Gigapan.com
Zoom in to see any building.Amazing.
By Gigapan.com
Why T. Boone Pickens' wind plan was a disaster
Why T. Boone Pickens' wind plan was a disaster
On Tuesday, Texas oilman and energy security proselyte T. Boone Pickens announced that he will delay, and likely permanently scuttle, plans for a 687 turbine wind project in the Texas panhandle. The demise of the project, which was supposed to be the largest in the world at a rated generating capacity of 1,000 megawatts, came when Pickens discovered he couldn't raise money to build transmission lines to carry wind energy from his remote 200,000 acres to big cities that would consume the power.
By The Daily Crux
On Tuesday, Texas oilman and energy security proselyte T. Boone Pickens announced that he will delay, and likely permanently scuttle, plans for a 687 turbine wind project in the Texas panhandle. The demise of the project, which was supposed to be the largest in the world at a rated generating capacity of 1,000 megawatts, came when Pickens discovered he couldn't raise money to build transmission lines to carry wind energy from his remote 200,000 acres to big cities that would consume the power.
By The Daily Crux
Are Bailouts Part of the Problem?
Are Bailouts Part of the Problem?
As the Treasury Department continues to hammer out the details of its plan to buy toxic assets from troubled banks, some on Wall Street are questioning the government’s entire strategy in combating the financial crisis, saying that it has just delayed the inevitable.
By The New York Times Dealbook
As the Treasury Department continues to hammer out the details of its plan to buy toxic assets from troubled banks, some on Wall Street are questioning the government’s entire strategy in combating the financial crisis, saying that it has just delayed the inevitable.
By The New York Times Dealbook
Tuesday, July 7, 2009
Macc Faber's Comments on Natural Gas
Recent Marc Faber`s Comments On Natural Gas
Natural Gas is the most “undervalued” commodity, investor Marc Faber said in an interview with Bloomberg Television on May 27. "Peak oil is a reality. It does not mean that prices will go up in the immediate future. There are other sources of energy like nuclear and Natural Gas. Natural Gas is the most undervalued commodity right now."Natural Gas futures were trading at around 4.00 at the time. They sold off over 15%. I bought Natural Gas today for a small trading position. I might add a bit more if it keeps selling off. Off course this will not be the absolute low for Natural Gas but it seems a good price to initiate a speculative position.
Natural Gas is the most “undervalued” commodity, investor Marc Faber said in an interview with Bloomberg Television on May 27. "Peak oil is a reality. It does not mean that prices will go up in the immediate future. There are other sources of energy like nuclear and Natural Gas. Natural Gas is the most undervalued commodity right now."Natural Gas futures were trading at around 4.00 at the time. They sold off over 15%. I bought Natural Gas today for a small trading position. I might add a bit more if it keeps selling off. Off course this will not be the absolute low for Natural Gas but it seems a good price to initiate a speculative position.
Wall Street comes to the White House
Wall Street comes to the White House
However, where there is real despair has been in the cult of the sacred cow appointments. The latest ugly data points: The number of Wall Street (versus business or academic) appointments. To wit: “How Goldman Sachs and Citi Run the Show“ via Andrew Cockburn.
By The Big Picture
However, where there is real despair has been in the cult of the sacred cow appointments. The latest ugly data points: The number of Wall Street (versus business or academic) appointments. To wit: “How Goldman Sachs and Citi Run the Show“ via Andrew Cockburn.
By The Big Picture
Monday, July 6, 2009
What We Can Learn From Roddick as Traders
What We Can Learn From Roddick as Traders
You know we say this a lot to developing traders who are under performing – you can improve. You must continually work to get better. Roddick went from an excellent player to almost as good as the best player ever. He did this through concentrated practice on his backhand and volleying, losing weight, conditioning, and probably a lot more work we will learn about going forward. But if he can get better, then so can we. It will just take some work.
From SMB Trading
You know we say this a lot to developing traders who are under performing – you can improve. You must continually work to get better. Roddick went from an excellent player to almost as good as the best player ever. He did this through concentrated practice on his backhand and volleying, losing weight, conditioning, and probably a lot more work we will learn about going forward. But if he can get better, then so can we. It will just take some work.
From SMB Trading
T2 Partners Presentation On The State Of The Housing Market, July 1, 2009
T2 Partners Presentation On The State Of The Housing Market, July 1, 2009
Whitney Tilson (right) and Glenn Tongue of T2 Partners have updated and expanded their excellent presentation on the housing and mortgage markets.
By Business Insider
Whitney Tilson (right) and Glenn Tongue of T2 Partners have updated and expanded their excellent presentation on the housing and mortgage markets.
By Business Insider
Video: Rolling Stone journalist hits media circuit to slam Goldman Sachs
Video: Rolling Stone journalist hits media circuit to slam Goldman Sachs
Great video
Rolling Stone journalist Matt Taibbi is hitting the media circuit to follow up his Goldman Sachs-bashing article called "The Great American Bubble Machine."The gist of Taibbi's article is that Goldman works hand in glove with the government to make billions from all sorts of financial bubbles and schemes.We don't think you can lay the blame for the Nasdaq and housing bubble entirely at Goldman's feet, but Taibbi is doing the world a service by pointing out how Goldman has "bought" a large chunk of the government.
From The Daily Crux
Great video
Rolling Stone journalist Matt Taibbi is hitting the media circuit to follow up his Goldman Sachs-bashing article called "The Great American Bubble Machine."The gist of Taibbi's article is that Goldman works hand in glove with the government to make billions from all sorts of financial bubbles and schemes.We don't think you can lay the blame for the Nasdaq and housing bubble entirely at Goldman's feet, but Taibbi is doing the world a service by pointing out how Goldman has "bought" a large chunk of the government.
From The Daily Crux
Saturday, July 4, 2009
Pres. Kennedy - The Independence Hall address - July 4, 1962
Pres. Kennedy - The Independence Hall address - July 4, 1962
The first time a President spoke at Philadelphia's Independence Hall since Woodrow Wilson. July 4, 1962
Have a listen while you're setting up the barbecue and breaking out the Buds
From Newsstalgia
The first time a President spoke at Philadelphia's Independence Hall since Woodrow Wilson. July 4, 1962
Have a listen while you're setting up the barbecue and breaking out the Buds
From Newsstalgia
Is Wall Street pay really bouncing back?
Is Wall Street pay really bouncing back?
By Slate The Big Money
By Slate The Big Money
Thursday, July 2, 2009
Manhattan Real Estate Crashes
Manhattan Real Estate Crashes
The Case-Shiller numbers indicated that things are getting worse and worse for the New York region real estate market, and now we have Q2 data for Manhattan specifically, and it's ugly
By Clusterstock
The Case-Shiller numbers indicated that things are getting worse and worse for the New York region real estate market, and now we have Q2 data for Manhattan specifically, and it's ugly
By Clusterstock
Are Big Payouts Set for Revival on Wall Street?
Are Big Payouts Set for Revival on Wall Street?
Some firms, like Goldman Sachs and Morgan Stanley, have thrown off the yoke of bonus restrictions by repaying the government bailout funds. While others, like Citigroup and Bank of America, have been focused on raising employees’ base salaries to try to shift attention away from bonuses. Whether through bonuses, base salary or a combination of both, the goal for all of them is the same: To retain their top talent.
By The New York Times Dealbook
Some firms, like Goldman Sachs and Morgan Stanley, have thrown off the yoke of bonus restrictions by repaying the government bailout funds. While others, like Citigroup and Bank of America, have been focused on raising employees’ base salaries to try to shift attention away from bonuses. Whether through bonuses, base salary or a combination of both, the goal for all of them is the same: To retain their top talent.
By The New York Times Dealbook
Gross: Fear And Poverty Will Clobber Returns For A Generation
Gross: Fear And Poverty Will Clobber Returns For A Generation
Here's the bond king himself:
Greed will come again. But for now, the trend is the other way and it promises to persist for a generation at a minimum.
The fact is that American consumers have suffered a collapse in wealth of at least $15 trillion since early 2007. Global estimates are less reliable, but certainly in multiples of that figure. And when potential spenders feel less rich by that much, the only model one can use to forecast the future is a commonsensical one that predicts higher savings, lower consumption, and an economic growth rate that staggers forward at a new normal closer to 2 as opposed to 3½%. There’s no magic in that number, and no model to back it up, just a lot of commonsense that says this is how people and economic societies behave when stressed and stretched to a near breaking point...
By Clusterstock
Here's the bond king himself:
Greed will come again. But for now, the trend is the other way and it promises to persist for a generation at a minimum.
The fact is that American consumers have suffered a collapse in wealth of at least $15 trillion since early 2007. Global estimates are less reliable, but certainly in multiples of that figure. And when potential spenders feel less rich by that much, the only model one can use to forecast the future is a commonsensical one that predicts higher savings, lower consumption, and an economic growth rate that staggers forward at a new normal closer to 2 as opposed to 3½%. There’s no magic in that number, and no model to back it up, just a lot of commonsense that says this is how people and economic societies behave when stressed and stretched to a near breaking point...
By Clusterstock
How the Other Half Still Lives
How the Other Half Still Lives
Not everyone’s cutting back these days. Now more than ever, the wealthy are springing for megayachts, private jets, and $30,000 designer gowns.
From The Daily Beast
Not everyone’s cutting back these days. Now more than ever, the wealthy are springing for megayachts, private jets, and $30,000 designer gowns.
From The Daily Beast
Celebrities on the Beach-Slideshow
Celebrities on the Beach-Slideshow
In its 26-year modern history, Vanity Fair has photographed some of the world’s most recognizable bodies (Gisele, Angelina, Brad … Borat?) on beaches from Malibu to Amagansett. Unfold the umbrella, slap on some sunscreen, and enjoy the view.
From Vanity Fair
In its 26-year modern history, Vanity Fair has photographed some of the world’s most recognizable bodies (Gisele, Angelina, Brad … Borat?) on beaches from Malibu to Amagansett. Unfold the umbrella, slap on some sunscreen, and enjoy the view.
From Vanity Fair
Wednesday, July 1, 2009
Goldman and Rolling Stone Writer Go to War
Goldman and Rolling Stone Writer Go to War
It seems that a war of the words has broken out between Goldman Sachs and Rolling Stone contributing editor Matt Taibbi, who authored an article sub-titled: “How Goldman Sachs took over Washington by engineering every major market manipulation since the Great Depression.”
By The New York Times Dealbook
It seems that a war of the words has broken out between Goldman Sachs and Rolling Stone contributing editor Matt Taibbi, who authored an article sub-titled: “How Goldman Sachs took over Washington by engineering every major market manipulation since the Great Depression.”
By The New York Times Dealbook
Dow 6,000, Part II
Dow 6,000, Part II
The conclusion is overwhelming: although the big-picture fundamentals may not be getting worse (so say the optimists), although the sky is not falling…the current situation is still bad (that much is a fact, bull or bear). And all that is the “good news”! The “bad news” is that the decline is global (making a gradual rebound that much more difficult and slower).
By Seeking Alpha
The conclusion is overwhelming: although the big-picture fundamentals may not be getting worse (so say the optimists), although the sky is not falling…the current situation is still bad (that much is a fact, bull or bear). And all that is the “good news”! The “bad news” is that the decline is global (making a gradual rebound that much more difficult and slower).
By Seeking Alpha
Subscribe to:
Posts (Atom)
Posts
