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Articles tagged with: Federal Reserve

Hedge Funds, Investing, Leadership, Trading »

[24 Nov 2008 | One Comment | 3,013 views]
Thick Turbid Transparency

You have to like Hank Paulson. The Treasury Secretary grew up on a farm in Illinois. Many leaders in American history learned the value of hard work while planting seed and harvesting crop. George Washington was a farmer. Thomas Jefferson was a farmer and envisioned our country as a republic of farmers with a strictly limited federal government. That was when agriculture dominated the economic composition of the United States. Since then, the original federation of thirteen states has grown to fifty while the percentage of the citizenry employed in …

Hedge Funds, Investing, Trading »

[26 Oct 2008 | 4 Comments | 4,486 views]
Long Term Capital Mismanagement

Henry Paulson, the Secretary of the U.S. Department of Treasury, recently announced a plan to purchase equity stakes in large public financial institutions to stem the tide of bankruptcies and failures brought on by the credit crisis. By buying shares in big banks, the government is essentially providing much needed cash to stabilize the companies and provide for some liquidity and credit stimulus. This is just one of many actions announced in an attempt to diffuse the credit crisis. Equally busy are Ben Bernanke and the Federal Reserve. Paulson swears …

Business, Hedge Funds, Investing, Strategy, Trading, Video »

[23 Sep 2008 | 2 Comments | 6,551 views]

Even the mighty are falling. The last two major independent investment banks on Wall Street, Goldman Sachs (GS) and Morgan Stanley (MS), have received permission from the Federal Reserve to convert from traditional investment banks into commercial banks or bank holding companies. Plenty of ink, digital or otherwise, has been spilled about the disappearance of investment banks so I won’t dwell much on that. We’ve seen the collapse of Lehman Brothers (LEH) and Bear Stearns. Still somehow, I’m sure there were some who sentimentally held out hope that the two …

Investing, Linkfest »

[27 May 2008 | No Comment | 846 views]
Investing Linkfest 5/27/08

Last week, I attended Zions Bank’s (ZION) 7th Annual International Trade and Business Conference. Most of the speakers were very interesting. John Howard, the former Prime Minister of Australia, gave a lively keynote speech and subsequently fended off with aplomb the inane question of a clearly wide-eyed political science student from the university. Christopher Padilla, the United States Under Secretary of Commerce for International Trade (that’s a mouthful), spoke about the opportunities in a world featuring an emerging power in China.

The one speaker that intrigued me most was Matthew Simmons …

Investing, Linkfest »

[11 May 2008 | 2 Comments | 3,632 views]
Investing Linkfest 5/11/08

The market takes a breather after several weeks of blistering recovery from last winter’s doldrums. Commodities all around saw amazing advances. Crude oil rose 8.3% last week and has more than doubled over the last year. I remember taking my first car, a Honda (HMC) Civic, out for the first time and pumping gas for about $1.18 per gallon. This was also in the notoriously gas-expensive San Francisco Bay Area. Base commodities and gold continue to follow oil’s lead in going the opposite direction of the U.S. dollar. Will the …

Investing, Linkfest, Technology »

[27 Apr 2008 | 2 Comments | 1,551 views]
Investing Linkfest 4/27/08

A couple weeks ago, I wrote about my pessimism regarding the technology sector. The market had seemed to interpret the surprisingly good results reported by Big Blue (IBM), Google (GOOG), and even Yahoo! (YHOO) as reasons for unleashing optimism and a bargain hunting shopping spree for stocks of publicly traded technology companies. Maybe the recessionary environment and the woes faced by banks and the American consumer would not negatively impact corporate budgets for technology. My skepticism rests on the ability of secondary technology companies to weather the economic slowdown. In …

Investing »

[17 Mar 2008 | One Comment | 543 views]
Big Ben Holds No Punches

A few days ago, I remarked how precariously positioned the investment banks had become. Today, we witnessed something spectacular as these once proud institutions accelerated their fall. Bear Stearns (BSC) will be taken over in a fire sale for approximately $2 per share by JPMorgan Chase & Co. (JPM) with backing from the Federal Reserve. Lehman Brothers (LEH), which has a similar business model to Bear, saw its stock take a dive on fear that it too faces liquidity problems.
Yesterday, Fed chair Ben Bernanke took the unusual step of lowering …

Investing »

[7 Mar 2008 | 2 Comments | 464 views]

As a renter, I’ve always thought that I had the advantage of not having to worry about property taxes, home maintenance, unruly tenants, and worst of all the illiquidity that homeowners or real estate investors suffer from. The real estate boom almost shook my conviction but the delirious giggles caused by incessant price appreciation and easy credit thankfully reached an audible decible. I reasoned that something was awry when my close friend, a U.S. Postal letter carrier at the time, managed to lever up with mortgages on three …

Business, Investing, Sports »

[27 Feb 2008 | One Comment | 830 views]

I love this guy Sam Zell – he’s just so funny and sharp. Zell is the real estate investment billionaire who sold his Equity Office Properties Trust to the Blackstone Group for $39 billion in the early part of 2007. He recently bought the Tribune Company, owner of the Chicago Tribune and the Los Angeles Times. The company also owns the Chicago Cubs major league baseball franchise. Zell is known for using colorful language during press conferences and speaking very clearly and succinctly in a straightforward …

Investing, Linkfest, Randomness, Technology »

[20 Feb 2008 | 5 Comments | 1,770 views]
Latticework Linkfest 2/20/08

Macro

Between a rock and a hard place – that’s the scenario Ben Bernanke finds himself in as the economy decelerates drastically while inflation rises more than anticipated.

For the masochists, Nouriel Roubini proposes a perfect storm to demolish the financial markets. Of course, the probability of financial armageddon is extremely low, but you never know. Even if a handful of his scenarios come to fruition, the pain will be significant.

Do KKR Financial’s (KFN) woes signal further trouble for the private equity industry? During the height of the private equity boom, analysts …