Friday, August 15, 2008

Great quote

I just came across a good quote that I had never heard before.

I will have to keep this in mind if I ever think about shorting a stock....

The market can stay irrational longer than you can stay solvent....Keynes

Friday, August 1, 2008

Wasn't Andersen Destroyed for this?

Citigroup destroyed ``documents under subpoena,'' Cuomo said in a letter sent today to the bank following a five-month investigation by his office.

Monday, May 12, 2008

Old proverb....

A Fool and his money are soon parted.....

I feel sorry for the guy really. He was just following the advice given by David Lereah.

I wonder if that is actionable? Maybe he can at least get his $20 back.

Thursday, April 10, 2008


Fantastic article in business week about the disastrous results of the Freescale private equity buyout.

It is a remarkably straightforward failure too, but I am left to wonder, with how terrible the split up of Motorola and Freescale has really been to both companies, why again is Motorola going to split off the phone division?

Thursday, March 27, 2008

Stay Classy Citigroup

Read about some hilariously shady business practices that Citi has undertaken with their Mortgage Origination business.

It's a dirty little secret that a lot of ARMS written in the last few years are actually going to reset in the coming months to lower rates due to the precipitous fall in Treasuries. (I know I can't wait for our reset to come.) It's a secret because the current selling model of the mortgage industry is to get scared consumers to over pay for fixed rate loans.

It seems like Citi is trying to scare people into Refinancing now into a *safe* fixed rate mortgage by quoting potential ARM rates from over a month ago....and overstating them at that.

I personally knew Citi was in deep financial doodoo when they wouldn't refund a late fee because I missed a payment on a credit card (that was due on Christmas day) by one single day. If they really needed my $20 bucks that bad, something serious must be wrong.

I cancelled the card and haven't looked back.

Wednesday, March 26, 2008

Interesting news out of Mother Moto today....

Looks like we are to be spun off. parts of me wonders if this rapid agreement to what Mr. Ichan wants is just to make his lawsuit go away.

Among other materials, Icahn is seeking board documents related to a potential spin-off of the cell phone unit, the service and selection of Motorola's senior officers and materials related to the use of company aircraft by senior management, board members and their families.

It sounds like they didn't want to be embarassed to me, or possibly subject to more intensense investigation by the sec and other shareholders.

Friday, March 21, 2008

Levels 1/2/3

Global Economic Analysis is one of my favorite blogs. It is much more bearish than I am in general, but he made a great catch on the recent Goldman earnings that were such a catalyst for the big market rallies over this past week.

How To Beat The Street (the old fashioned way)

Bloomberg is reporting Goldman Sachs Profit Falls 53%, Less Than Estimated. Here is the key snip:

Goldman's so-called Level 3 assets, which are the hardest to value, rose to about 8 percent of the firm's total assets from about 7 percent in the prior quarter, Viniar told analysts. The increase was largely related to commercial real estate loans that were moved from Level 2, where assets are valued in part using market prices, to Level 3.

Goldman has $873 billion in assets. That means Goldman moved $8.73 billion in commercial real estate loans from Level 2 "Mark To Model" to Level 3 "Mark To Fantasy". Something tells me Goldman did not like the answer their model was giving them.

I wonder how the markets would have reacted if this little bit of sleight of hand hadn't been done.