Archive - Dec 20, 2009

In response to a piece penned by Tom Brown of bankstocks.com about Synovus Financial, I carefully go through his bullish arguments and point out areas in which we do not share the same outlook. In trying to assess the potential risks, the questions I try to answer are as follows: (1) Will SNV have enough capital to make it through the cycle without further diluting shareholders and (2) What is the probability that SNV does not survive this credit cycle?

With Spyker Cars in continued negotiations to buy the sob story that has been Saab, I thought I'd enlighten the Zero Hedge readers of what a Spyker is, for especially for us Americans, we've never seen the likes of a Spyker, at least not in the mainstream anyway. Come to think of it- we couldn't make a go of Saab either, General Motors having successfully run it into the ground; so why should we care what happens to Saab? Because it's a decent car with an excellent heritage- a Swedish car company worth saving- if only to continue a car mounting the ignition switches on the floor, between the front seats. As for Spyker, well, quirk attracts quirk.

What's the problem with modern economics? Here is an interesting exchange on methodology between Paul Krugman and Michael Hudson...

• GM is reportedly looking at "all offers" for Saab. (Apparently only unrealistic offers have been entertained hitherto). [dow jones]
• Dutch automaker Spyker: "Hey, we'll bid."  GM: "Anyone... anyone at all?  Bueller...?  Bueller...?" [marketwatch]
• China's Zhu Min: "The world does not have so much money to buy more US Treasuries." (Current account woes. Who knew?) [shanghi daily via drudge]
• Iranian troops lower flag and withdraw from Iraqi claimed oil well. (Iranian theft of U.S. egg nog shipment to troops suspected).  [reuters]
• In Russia, judo throws you.  (Do not fuck with judo black belt Putin.  Period.)  [reuters]

Over 40 years ago, mainstream America got their first glimpse of an Alfa Romeo- the Spider. The Alfa Spider was that of Benjamin Braddock, the newly minted college graduate in the now classic film The Graduate. Small, shiny, raspy and red, it was arguably the film’s most outspoken star, in a cast of characters including Dustin Hoffman and Anne Bancroft. But now a new Spider is ashore, will it re-kindle the romance? The 2010 Alfa Romeo 8C Spider. Will it leave America asking- are you trying to seduce me?