Archive - Aug 31, 2010 - Blog entry

Buried in the recently passed Dodd-Frank financial reform bill are massive financial rewards for turning in your boss. Turning in Goldman Sachs could have earned you a reward of $500 million. Wall Street firms are bracing themselves for an onslaught of claims, legitimate and otherwise, by droves of hungry gold diggers looking for an early retirement.

If you listen to most economists they seem to have an Orwellian Newspeak version of economics which turns everything on its head. What we thought was good economic behavior is now bad economic behavior according to them. They say we should be spending not saving. Consumers aren't listening. They are saving because they know that good is good and bad is bad.

Despite strong opposition from Canada's largest public pension funds, Magna International said it will move ahead with a deal to have founder Frank Stronach give up control over the auto parts giant. In all, the payout is valued at roughly $1 billion – an unprecedented 1,800% premium and dilution compared to other conversion deals.

“It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.” – Mark Twain

A round up of recent news. Don't read it if you don't want to know ...

In today’s Crony capitalist economy, the political system is bought outright by the large multinational corporations via various lobbying efforts/ corporate donations. These multinationals then receive kickbacks in the form of deregulatory policies and other tax loopholes, which permit them to further expand their power and influence.

Merger mania is definitely back in the Tech sector. However, the more intriguing story (or rumor) is when news broke on Sunday night that Cisco (CSCO) has made an offer to acquire Skype before they complete their IPO.

This is one to watch.

CRE porn (about as sexy as the industry gets): Mrs. High End Condotel cum Condo Market is reintroduced to Mr. Gravity and their swinging partners, Mr. Supply and Mrs. Demand!

Note for you imaginative guys: A Latin or English linking word, which can be either the preposition with or a conjunction meaning when, because, or although.

A quick review of how accurate we were in our highly contrarian calls (don't call me a Permabear) for the year 2010.

Research in Motion's flagship product was obsolete upon launch and is getting discounted by 50% two weeks after release while competing handsets can't stay on the shelves at FULL price. RIM needed a home run with this product, and instead it struck out. This portends very bad things for the share price in the medium to long term, sans a buyout/takeover.

In the brave new world of behavioral targeting, your PC may know more about you than you want. Sharing your personal data with a few “buddies” like Facebook, Google, and MySpace. Worried about privacy? Privacy, shmivacy. I bet the IRS would like to know.