From John Dizard at the Financial Times: In the case of Henry Paulson, Treasury secretary, it would seem he is distinguished by a profound, possibly intentional, ignorance of what he is talking about, and a central nervous system that would not seem to be capable of abstracting possible outcomes beyond one news cycle.
Read more...The New York Times has a peculiar story on hedge fund manager John Devaney who managed to lose all his investors’ money. Not 80% or 90%. All. And it wasn’t as if the fund somehow blew up spectacularly over a short period. Devaney froze redemptions a year ago. That begs the question: had he started […]
Read more...Readers may recall that this humble blog, thanks to the information provided by a former senior person at Lehman, reported that some of the investment bank’s wondrous deleveraging (it was well distributed across products, geographies, and credit quality) was due to asset sales to newly formed hedge funds, R3 Capital Partner and One Williams Street, […]
Read more...Oil prices continue their seemingly relentless march upwards, breaching the $143 a barrel level Tuesday. Even the headlines are selling the bull’s case. Note that a Bloomberg’s story was titled, “Crude Oil Rises a Second Day as IEA Predicts `Tight’ Supplies Through 2013.” Yet what did the text say? The IEA said in a report […]
Read more...Felix Salmon and I see the contretemps between MBIA and the New York Times quite differently, as our posts (and e-mail exchanges) illustrate. I like Salmon, but ironically, the way we got to know each other was when he savaged a Gretchen Morgenson piece, and I took issue with some of his arguments, so this […]
Read more...Let’s start with some admissions: Gretchen Morgenson, one of two authors (the other is Vikas Bajaj) of a takedown piece on MBIA yesterday, has some detractors in the blogsphere because, frankly, her understanding of credit instruments leaves something to be desired. Her critics overlook her solid work on executive comp and corporate malfeasance. When she […]
Read more...I’ve had less cause of late to criticize the Wall Street Journal as the paper has made strides in its coverage of the credit markets. However, today’s paper has a story in which ideology appears to have compromised its reporting. Today Charlie McCreevy, EU internal markets commissioner, is to outline proposals for closer, tougher oversight […]
Read more...It doesn’t take long to pick up on a news outlet’s quirks. For instance, Bloomberg tries to be out first with stories, yet also provide relevant market details for busy investors. They often compensate for their artlessness via juicy quotes. The New York Times, lacking the staff to report on business comprehensively, looks to leverage […]
Read more...The interpretations of the implications of the Riyadh-Washington pas de deux over oil production increases were surprisingly disparate, a seeming Rorschach test of sentiment about the US, Bush, and the Middle East. The papers that see themselves as US opinion leaders, namely the New York Times and the Wall Street Journal, stressed how little the […]
Read more...A year ago, I found Gillian Tett, then the Financial Times’ capital markets editor, to be the single most useful financial reporter by a considerable margin. She gave insights into areas that were important but badly neglected elsewhere, such as CDOs, credit default swaps, SIVs, all well before they entered the mainstream lexicon. She was […]
Read more...It’s amazing how a problem isn’t a problem until it’s presented as one on television or a respected print outlet. Never mind the fact that the cognoscenti have been worried about the possibility that the two big mortgage guarantors, Fannie Mae and Freddie Mac, were too thinly capitalized relative to their massive balance sheets. Never […]
Read more...A MarketWatch story “Home prices aren’t tanking everywhere,” has the all the earmarks of being a National Association of Realtors plant. Note that it’s even told from the perspective of supposedly well-meaning (as opposed to commission-motivated) brokers trying to educate clients that the press is wrong, things really aren’t that bad. Here’s the gist of […]
Read more...It’s remarkable how attending an industry love-fest can distort one’s perception. The Economist seems to have fallen hook, line, and sinker for International Swaps and Derivatives Association view that counterparty risk in the credit default swaps market isn’t all that big an issue. Its article, “Clearing the fog.” while mentioning the little problem that led […]
Read more...Why is it that the media feels compelled to take pronouncements from government officials more or less at face value? By now, they ought to know that if someone from the Bush Administration is moving his lips, odds are it’s a lie. Today’s object lesson is the so-called financial services regulatory reform plan announced by […]
Read more...An article by John Berry at Bloomberg, “Fed Actions Defuse Subprime ARM Rate Reset Bomb,” is extraordinarily misleading, claiming that a Fed paper based on a single pool of MBS issued by New Century in 2006 shows that subprimes will work out much better than conventional wisdom says. Let’ s start with Berry: Many analysts […]
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