Archive - Jan 2009

Reading some GS equity weekly data. Key charts are presented below.
Note: as have been getting this question quite a bit, GS has the following most recent 2009 and 2010 Earnings estimates for the S&P500 (according to GS equity team; would imagine their credit teams has much different conclusions: see UBS case):

When I discussed the basis trade opportunity, the conclusion was that arbitrage in the secondary (and by extension primary) market exists due to significant dislocations in liquidity. Sure, one can argue that immediate culprits for the arbitrage have to do with counterparty risk and funding costs, which makes sense, but those are merely derivatives of the liquidity disconnects between different brokers, their accounts, and any permutations thereof.

First Geithner, now this. In a developing story, Obama's pick for Secretary of Health and Human Services Tom Daschle is apparently on the outs with the IRS as well.

Nassim Taleb of Black Swan and fat tail fame, has created a Facebook site called "Make Bankers Accountable." It is feasible that this could become the 21st equivalent of the million man march on Washington. We fully endorse the initiative. Maybe eventually Obama will realize just how angry the general public is becoming.

Nassim Taleb of Black Swan and fat tail fame, has created a Facebook site called "Make Bankers Accountable." It is feasible that this could become the 21st equivalent of the million man march on Washington. We fully endorse the initiative. Maybe eventually Obama will realize just how angry the general public is becoming.

Paul Kedrosky has captured some great statistical data from mint.com about how the average U.S. consumer is faring. In a nutshell - plain horrible.

Straight from the horse's mouth (Aaron Patzer, CEO of Mint):

Breitbart reports that the Feds foiled an attempt by a disgruntled former employee to destroy all the data on Fannie Mae's 4,000 computer servers nationwide.

Dealbreaker reports of an amusing cityfile artile, in which it seems the Financial Times is suing Blackstone scion Stevie of duplex 15/16B at 740 Park, for abusing FT.com login privileges. This is so funny cause it's true for so many.

Spin this:

Yes, this guy is small time, ripping off people for "only" $6.5 million, but his approach is unique.

In an 8-K filed yesterday, Edge Petroleum announced what many had known for a long time, that it may filed for Chapter 11. Earlier the company had hired restructuring law firm Akin Gump to advise on financial and strategic alternatives.

As we discussed previously, the trend of PIKing dividends continues, with Simon Property Group announcing earlier it would pay out its $0.90 quarterly dividend in the form of 10% cash and 90% in kind. The largest mall and shopping center operator is aggressively conserving cash in a scary commercial-mortgage backed environment.

(from Markit)