Lunchtime Links 12-21

Dec 21, 2009 17:00 UTC

Hedgie Tepper on pace to make $2.5 billion this year (WSJ) The moral hazard trade has a new face. Tepper bet big that government would rescue bank shareholders and creditors. He was right. Can we blame him? He didn’t make the rules; he just played the game better than the rest once they were made.

Why can’t Americans make things? Two words: Business school (Scheiber, New Republic) For 30 years we’ve been focused on teaching finance, not manufacturing…

At top subprime lender, policies were invitation to fraud (Heath, HuffPo)

Fannie/Freddie suspend foreclosures for holidays (AP) Citi, JP Morgan and BofA have followed suit.

Goldman threatens to move some London staff to Spain (Evans, Independent)

Citadel files for bankruptcy (Spector/McBride, WSJ) The syndicator of Don Imus’ morning show is the latest radio company to struggle with debt. See also Clear Channel, Emmis and Regent….

GE uses UK libel law to gag doctor (Gerth, ProPublica) Ironic: GE wants to shut up a doctor for saying GE suppressed information. (ht, NG)

Trader Joe’s does something awesome (Reddit) Reminds me of all the guys out on bicycles Saturday night delivering food in NYC. I’m from Chicago so am not intimidated by windy Winter weather. Still, Saturday night’s storm was impressive. Wind so bad in the building canyons that you couldn’t walk more than a block or two. So everyone ordered in. No one was on the street besides food delivery guys. I wish Lou Dobbs could have seen it….

Anonymous dry cleaner also in holiday spirit (imgur)

Snoop Dogg invests in inner-city football (AP) Snoop Dogg, 38, launched the [youth] league in 2005 with $1 million of his own money after noticing that much of urban Los Angeles had no football for boys ages 5 to 13. He’s since invested about $300,000…The league now has 2,500 kids enrolled.

For anyone else who’s ever sung Handel’s Messiah….(ht CSQT)


“Tepper bet big that government would rescue bank shareholders and creditors. He was right. Can we blame him? He didn’t make the rules; he just played the game better than the rest once they were made.”

did Tepper LOBBY for the bailouts? did Gross?

Evening Links 12-16

Dec 16, 2009 22:20 UTC

Fed repeats “exceptionally low” for “an extended period” (Fed statement) The Fed maintains that it isn’t raising rates for the foreseeable future, but repeated that it plans to end MBS asset purchases by April next year. Too bad we can’t get a surprise rate hike in order to chase risk back out of credit markets…

Wells’ CLO deal called “landmark” (Paulden, Bloomberg) The return of CLOs would be the latest sign that Wall Street is dancing again.

Big decision looms on Fannie and Freddie (Timiraos/Hagerty, WSJ) Suggests Obama could expand his commitment to Fannie and Freddie beyond $400 billion while he’s still able to unilaterally. If he waits till next year, Congress would have to approve.

Man of the Year: Ben Bernanke (Time) Ha! Ben should have said thanks but no thanks. Ten years ago Time christened Rubin/Greenspan/Summers as The Committee to Save the World. In the fullness of time, all have been proven failures. Time’s endorsement is final confirmation that Bernanke too is a failure.

Norway raises rates (Kremer, Bloomberg) More fodder for yesterday’s Norway thesis. Higher rates make for a more attractive currency…

Some debt-laden graduates wonder why they bothered with college (ABC News) Full of choice quotes: “You’re led down this path of needing to go to college,” [says one indebted grad]. “The college diploma is the new high school diploma.”

Spend more. Get less. The worst fun city in America (Wachs/Eskenazi SFWeekly)

The year in photos, part 1, part 2 and part 3 (The Big Picture) More from the best photo blog on the web.

Canadian ice-fishing…


Agree with Andrew! A state school will be fine for most people.

Too many doors are closed if you have no degree. It’s a screening tool used by most employers. You *probably will not* get a white collar job with any fortune 500 company without a college degree or a job in any state or federal bureaucracy. Without a college degree, you had better go into business for yourself, learn a trade like plumbing or data networking, work on a rig or as a miner, etc. if you want to make good money.

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Fannie gets another $11 billion bailout

Aug 7, 2009 16:45 UTC

Al Yoon reporting on the ever-expanding bailout of Fannie Mae….  (Reuters)

Fannie Mae … on Thursday reported a $14.8 billion quarterly net loss …. [I]ts regulator requested $10.7 billion from the Treasury to erase a deficit in its net worth, bringing total draws under a senior preferred stock purchase program to $45.9 billion.

Fannie has now burned through a quarter of the $200 billion bailout commitment made by Treasury.  My colleague Agnes Crane has more, including details of how Fannie’s losses were drastically reduced by the new fair value accounting rules that went into effect earlier this year.