naked capitalism

Anonymous says:

http://www.reuters.com/article/innovationNews/idUSTRE497BX220081008

Lehman to sell stake in R3 hedge fund

“NEW YORK (Reuters) – Lehman Brothers Holdings Inc (LEHMQ.PK: Quote, Profile, Research, Stock Buzz) agreed on Wednesday to sell its 45 percent stake in hedge fund R3 Capital Partners for $250 million in cash and a $250 million investment in another fund managed by R3.”

Is it they get $250mm in cash but then have to plowed that back into another fund or is it that the get $250mm in cash and then $250mm in news shares of the other fund?

alan von altendorf says:

I agree with David and expect a 50% haircut on the trash assets.

Also, see this excellent analysis at FT Alphaville

Viv says:

The TED spread’s just spiked to 413 basis points. The credit markets seem to be worsening at this point.

Dave Raithel says:

There is nothing more alienating than having no place to be. The Ideal of Home Ownership is a morally legitimate – though not THE only morally legitimate – proposal for everyone to have a place to be. The particular shortcomings of McCain’s plan, whatever it may be in full detail, is not a good counter to the proposition that everyone needs a place to be. One might suggest, as does Mr. Salmon, an “affordable housing” solution – but no renter is ever as secure in their place as is a home owner. One can characterize the ideal of home-ownership as harboring “equality of outcome” assumptions – afterall, most anything can be characterized in different ways for different purposes. I tend to characterize home-ownership in the tradition of Jeffersonian Yoemanry – the stake holder with a piece of tangible reality to be. In a bourgeois society, that’s the bourgeois thing to do. (This isn’t snark – I really think and talk like this.)

More in the financial vein: If in fact deflation is our future, then lenders can afford to take some haircuts.

Anonymous says:

Say it isn’t so -that the lack of decisive action is a delaying tactic until a public reaction allows postponement of the election.

I am sorry that the venality of this bunch in charge cannot be underestimated.

(hope I’m not rated among the snarky -posting on the Internet a first for me. I respect the quality of this blog and the high level of expertise far beyond my own)

Anonymous says:

…it is ‘they’ who cannot be underestimated.

Anonymous says:

Yves, I’m new reader and was initially impressed by the content and editorial tone, but later disappointed to see links to snarky progressive and conspiratorial sites. I’m having a hard time reconciling an image of a serious economist/banker such as yourself with these aberrations and some deeply disturbing comments that ensue.

It’s possible that I don’t understand the position of this blog, whether it’s really progressive or not, but I have yet to see progressive economic ideas here, so not sure why progressive politics are even linked to. You set the tone, the readership is following your example.

Anonymous says:

Ironic that in the same post you complain about hostility, you link to that Ambrose Evans- Pritchard guy, who seems obsessed with bullying the euro.
Will we still have a 15-member euro by Christmas, he asks. Is this because he is worried about the euro? Hell no, I am sure he will be very happy when the euro collapses. If you want quality discussions, than I would suggest you maybe start with posting quality links.

Yves Smith says:

Anon of 1:58 PM,

Ambrose Evans-Pritchard has been one of the few writers to make the correct call on inflation versus deflation, and has also regularly provided excerpts from interesting and useful research that was not covered anywhere else, in media or blogs. Several economist/fund managers have written to tell me that Evans-Pritchard is one of the very few financial commentators who understands economics.

As for “bullying the euro” one writer’s words cannot move a currency. I have been saying for many months based on input from someone who has extensive contacts with regulators and speaks occasionally to Trichet that the ECB would have to cut rates because their banks are in bad shape.

I must differ with you as to the “quality” of Evans-Pritchard’s work. FIrst, per above, he has been more accurate than the great majority of financial writers. Second, many of my professional investor readers find Evans-Pritchard to be useful; indeed, some even send me links to his articles, IHe appeals to the sophisticated readers in my audience, and I take their assessment more seriously than that of the occasional anonymous reader who begs to differ, or perhaps has a vested interest that is opposed to what E-P is discussing.

And “bullying” a currency, which I find a very odd way to describe his writing on the euro, which is gloom and doom, but no more than, say, Nouriel Roubiini on the general outlook, is not at all the same as bullying a person. That is a very lame excuse for rudeness. It is possible to disagree without descending to personal attack or denigration.

mxq says:

RE: Felix

i think the new american dream is to be debt-free. Those phony, get-you-out-of-debt quick schemes are probably going to make a killing (unfortunatley).

Anon 10:06 “Yves, may I respectfully suggest that readers take their tonal cues from the tone of your own comments. Quelle suprise!”

Anon, you are probably right about cues…if you’re a robot (or were raised in a barn). This blog isn’t being forced on anyone. As a result, people that respond form their own opinions. This blog is not here to teach manners…so for pity’s sake, show up with your own.

Anon @ 1:35…if you’re a new reader, how can you possibly have formed such a grave and damning opinion given your small sample set? this blog has been around for multiple years. That’s really irresponsible for saying something like that and then not cite anything that supports what you are spewing. A drive-by ad hominem. Real nice. Not sure Yves ad hominems anybody in her posts, so you’re pretty much following your own example.

Anon @ 1:59…i agree she’s too fair. As far as my memory is concerned, there have only been a handful of users that have been kicked out vs. the rather large number of asshatted comments. I’m guessing she gives readers the benefit of the doubt that they can change after the forum actually acknowledges their comments, no matter how ludicrious. That doesn’t mean we take their comments to heart, but it does mean that the threads are like a real live conversation…asshattery won’t be ignored.

mxq says:

Sorry sorry sorry…an all in one place for idea generation, frank, critical analysis, and debate, is – as a reader – a luxury in my book. It just bugs me when a miserable few try to ruin it for everyone, inlcluding our seemingly tireless host.