Archive - May 27, 2011 - Blog entry

You won't believe how many billions public pensions are pouring into hedge funds. Is this positive or sowing the seeds of the next crisis?

2 Young 2 Die and other important matters on yet another Friday afternoon before the shit could hit the fan three day weekend...

Credit markets are sending some worrying signals for risk appetites. Systemically rising spreads in HY, among other charts we highlight, suggest fixed income players are getting the post QE2 joke ahead of stocks.

Bank of America, which services mortgage loans on behalf of investors, may be acting for its own benefit, Knights of Columbus said in a lawsuit filed today in New York State Supreme Court.

What's the hole that is swallowing up the economy? The failure to follow the rule of law. The rule of law is what provides trust in our economy, which is essential for a stable economy. The rule of law is the basis for our social contract. Indeed, it is the basis for our submission to the power of the state.
We are supposed to be a nation of laws, not of men. That's what humanity has fought for ever since we forced the king to sign the Magna Carta.
Indeed, lawlessness - the failure to enforce the rule of law - is dragging the world economy down into the abyss.

It is important to understand that even a much-followed stock like Cisco will suffer from inefficiency (which as a value investor I welcome), due to investors confusing the lousy stock with the company’s fundamental performance. That is how you find high-quality companies at bargain-basement prices.

Goldman sold somewhere around $428,672,680 worth of Apple stock into Apple loving, Apple can do no wrong, Apple has superior user experience, Apple will never face margin compression, Apple has shiny new products on tap, Google Android phones are cheap, I don’t care if the competition is taking over the world, Apple juice sucking, Goldman Conviction Buy List client purchases. Diehard Apple fans, the Goldman bonus pool (Manhattan Motorcars & the Hamptons local Azimmut dealer) simply luvs y'all!

While globalization has generated immense wealth over the last 30 years, it has accrued only to those who were in position to take advantage of it. Those would be multinationals, technology firms, and emerging nations. If you are not one of those, or a shareholder in them, then you have been basically screwed by globalization. Champaign with former Secretary of Labor, Robert Reich.

Canadian private equity is booming, helped in large part by large Canadian public pension funds, and increasingly attracting global tech leaders. Is this the beginning of a renaissance period for Canada's PE market, or a sign that an overheated and over-leveraged economy is peaking?

Hiroko Tabuchi is a NY Times Reporter who received this letter from a mother in Fukushima on a recent trip. She promised to translate it and share it. It just popped up on Twitter and after reading it I feel compelled to repost it here as well. It is heart breaking and the plea by those suffering fellow citizens of our planet deserves to be heard and acted upon by all of us.