Weighted Average Cost of Capital Doesn't Include Everything
Or: Figures don't lie, but Liars Sure do Figure! We've got a lot of people with loans in the low fives, interest rate wise, ... : $350,000 first at 5.25% $100,000 second at 8.5% $50,000 consumer debt at 12% This person then used ... that there's enough equity in the property to absorb the full amount of excess debt without PMI. Robert [more...]
Date: 2009-01-11 17:50:23
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‘Exit’ Sign Flashes at Merrill Lynch After BofA Deal
‘Exit’ Sign Flashes at Merrill Lynch After BofA Deal Posted by Heidi N. Moore Bank of America closed its acquisition of Merrill Lynch on Jan ... Capital Management, a $30 billion investment firm and lender with a special focus on distressed assets ... s expansion into leveraged finance and debt underwriting, helping it overtake Salomon Brothers as [more...]
Date: 2009-01-11 02:38:56
High Priced Republican Party Propaganda Campaign Seeks To Undermine Workers' Free Choice
America's working families turned out in droves last November. Eight years of economic and fiscal policies designed to pauperize them and redistribute wealth upwards was more than enough and even Obama's hint of "hope" was better than McCain's iron clad guarantee of four more years of the Bush economic miracle [more...]
Date: 2009-01-13 18:00:00
Can You Name the Greediest Corporate Titans of 2008?
You know who Bernie Madoff is. But what about Dwight Schar, Patrick Soon-Shiong, or Richard Baker? ... a pharmaceutical company to a German company for $3.7 billion; the company, the only source of much-in-demand ... they could spin debt and swaps into gold (for themselves) by creating all sorts of new financial products [more...]
Date: 2008-12-23 19:45:05
Hanging In There Ain’t Much Comfort When You’re Near the Top of The Range
Published this intro to the RevolutioNewsletter for subscribers on Monday…you can sign up to get these newsletter intro’s which I sometimes publish ... stocks, the best secular growers, the companies with no debt and tons of cash when (if) the market gets ... from the government paying off all the worthless contracts the company stupidly bought from AIG [more...]
Date: 2009-01-15 12:20:19
Times Co. sees need to educate reporters, analysts about debt
The back-and-forth between Michael Hirschorn of The Atlantic and The New York Times about The Old Gray Lady’s long-term health – or, ... , I have spent more time helping both financial analysts and journalists understand our debt. Someone recently said to me, ‘Equity analysts have become debt analysts.’ I think that’s true,” Mathis said via e-mail [more...]
Date: 2009-01-15 23:01:22
Nuclear warning to taxpayers, investors, part 2
By Joseph Romm Part 1 presented a new study that puts the generation costs for power from new nuclear plants at from 25 to 30 cents per kilowatt-hour -- triple current U.S. electricity rates! Nuclear plants with such incredibly expensive electricity and "out of control" capital costs, as Time put it, obviously create large risks for utilities, [more...]
Date: 2009-01-10 12:44:19
How does a government create jobs?
One of the predominant promises of the trillion dollar and growing stimulus package demanded by Barack Obama and being developed by Congress is the ... out of it or has secured by taking on debt, is untrue. I see three basic problems with the government creating jobs ... decrease in personal debt load, an increase in cor [more...]
Date: 2009-01-15 22:10:41
BofA?s Ken Lewis to Employees: ?This Extraordinary Period Has Called for Extraordinary Measures?
Deal Journal colleage Dan Fitzpatrick reports: Bank of America Corp., its stock hammered Thursday by its need for billions in federal aid to support its acquisition of Merrill Lynch & Co., tried to rally its employees with a memo titled “Bank of America Remains Strong.” [more...]
Date: 2009-01-15 16:23:00
Fama's Fallacy, Take I: Eugene Fama Rederives the "Treasury View"
A Guestpost from Montagu Norman, former Governor of the Bank of England: Back in the 1920s and 1930s--in the days that overly-clever bisexual academic dilettante John Maynard Keynes was trying to persuade us that if only we got the government to spend more money the unemployment rate might go down--by far the silliest argument against his [more...]
Date: 2009-01-15 16:29:37
Hoarders and Destroyers
Just when you thought it was all baked into the cake...whammo! Another pie to the face. Get ready for more pies. In fact, you could take your pick of pies this morning. The most painful pie was yesterday's 4.3% decline on the All Ords. It was the worst day of the year for Australian stocks. Unemployment called in at 4 [more...]
Date: 2009-01-16 03:04:54
Beware of fake mortgage ‘fixers’
Beware of fake mortgage ‘fixers’ In the housing market collapse, a new breed of rip-off artist has emerged, ... . Help! My post-divorce debt is killing me! Fuel Posted By : Steven G When it comes to business and finance there is a big problem with the ethics of the men and women behind big oil and the government [more...]
Date: 2009-01-15 23:19:09
Punishing the Wizard: On Apple and Steve Jobs
Punishing the Wizard: On Apple and Steve Jobs John Paczkowski of All Things Digital nails it in 'Apple Investors Are Wusses ... of differentiated products, diversified revenue sources, depth of product pipeline, quality/depth of management team, operating margins, profits, cashflow, cash reserves and absence of debt? So go ahead, [more...]
Date: 2009-01-15 20:11:14
Asian Stocks Plunge Overnight
Asian Stocks Plunge Overnight By newsroom | - 12:21 am - Posted in Business News, Economy, Financial News, Stock Markets, ... , Germany’s biggest bank, on Wednesday reported a 4.8 billion euro ($6.4 billion) loss for the fourth ... bank earnings because of bad debt,” said Francis Lun, general manager of Fulbright Securities Ltd [more...]
Date: 2009-01-15 05:21:58
One-on-One With Phil Weiser – Topic #1: Finance
Late last year, Phil Weiser (the omnipresent head of Silicon Flatirons and CU professor of Law and Telecommunications) ... and what it means for start-ups, evaluating the role of angel financing, venture capital, private equity as well as the public debt and equity markets. Our discussion will touch on whether venture [more...]
Date: 2009-01-12 21:56:22
Results of Capitalizing Leases (2)
United Airlines declared corporate bankruptcy on December 9, 2002.8 The ratios in Exhibit 4.8 tell us why—United has very little equity and has been heading in the wrong direction, even before September 11. The adjusted debt-to-total capital ratio shows that equity makes up only 1 percent [more...]
Date: 2009-01-09 00:06:53
The Dividend Dilemma
Obama said he will order the Treasury Department to limit dividends paid by commercial banks and investment banks that receive “exceptional assistance” from the government to “de minimis amounts”. That order will not likely receive any ... receiving “extensive assistance” and are also the primary sources of a large portion (perhaps [more...]
Date: 2009-01-15 16:35:17
NEWS WIRE: Uganda: Interest rates still high despite competition
Source: Daily Monitor. Original news wire here. Competition for customers and space in urban areas heightened, this year, ... by Bank of Uganda, United Bank for Africa (UBA) and Equity Bank from Kenya which bought 100 per ... shop in Kampala last year and Global Trust Bank from Nigeria. Equity’s takeover widened [more...]
Date: 2009-01-15 05:01:33
Pandit: A More Than $800 Million Man?
We posted this in June: The Wall Street Journal reports today that Citigroup is shutting down Old Lane Partners, ... decided it couldn't spare the capital to shore up the struggling hedge fund. The article noted: Old Lane ... -fund investors. Citigroup never marketed Old Lane to new investors, even after the fund was designated [more...]
Date: 2009-01-15 08:43:33
Premiers to press Harper for infrastructure boost
“We want to get those shovels in the ground sooner rather than later,” Ontario Premier Dalton McGuinty said. “We don’t want the recession to be over by the time we get infrastructure dollars spent.” Indeed, that would be disastrous. But, hey, money grows on trees, right? Spend away [more...]
Date: 2009-01-15 20:12:27
TREASURIES MAY MAKE US WAIT
“The two most powerful warriors are patience and time ... of U.S. Treasuries. I've suggested that both governments might be losing their appetites for U.S. debt for several ... are experiencing severe recessions, and their ability to fund U.S. debt has been curtailed.4. Both Japan [more...]
Date: 2009-01-15 20:48:00
Is Bank of America the Next “Citi”?
Is Bank of America the Next “Citi”? This morning Bank of America hit a new 52 week low, and traded at its lowest level since 1991 ... that help illustrate why humans make predictably irrational decisions. Ariely is the author ... , and the weaknesses in the credit rating agencies’ collateralized debt obligation (CDO) assumptions [more...]
Date: 2009-01-15 15:42:49
by Joel S. Hirschhorn featured writerDandelion Saladwww.foavc.org January 12, 2009With the meltdown of the American economy, what better time to ask: Can libertarianism come to the rescue? Perhaps the most interesting statement in the Wikipedia discussion of libertarianism is that “There is no single theory that can be reliably identified as the [more...]
Date: 2009-01-12 17:23:43
Useful Advice - Can The Hope For Home Ownership Relief Act Really Help Homeowners Avoid Foreclosure?
My view on this bill is that it will be a dismal failure ... must be at least 31 percent; * They cannot afford their current loan; * They did not intentionally miss ... program include: * 30-year, fixed rate mortgage; * Maximum 90 percent loan-to-value ratio [more...]
Date: 2009-01-15 16:06:21
Thoughts for a Thursday Morning
© Zoriah/www.zoriah.com The Twelve Editorial Rules for Middle East Reporting1) In the Middle East it is always the Arabs who attack first and always Israel that is defending themselves. This defense is called a reprisal. 2) The Arabs, Palestinian or Lebanese have no right to kill civilians. That is called “terrorism.” 3) [more...]
Date: 2009-01-15 15:06:00
YOUR VIEW: Charles Merlis
We’re bailing out large corporations, it’s time to help the little guy ... us to spend on goods and services. Instead many people have used it to reduce their credit card debt ... For a Debt Consolidation Loan or Credit Card Counseling Service Source: YOUR VIEW: Charles [more...]
Date: 2008-10-28 03:36:43
BofA?s Ken Lewis to Employees: ?This Extraordinary Period has Called for Extraordinary Measures?
Deal Journal colleage Dan Fitzpatrick reports: Bank of America Corp., its stock hammered Thursday by its need for billions in federal aid to support its acquisition of Merrill Lynch & Co., tried to rally its employees with a memo titled “Bank of America Remains Strong [more...]
Date: 2009-01-15 16:23:00
"A Line in the Sand"
If you look on the sidebar, you will see a link to "Bailouts and Stimulus Plans - Fama/French Forum," at least until it rolls off the list ... ) CS , and government savings GS .... (1) PI = PS + CS + GS.... The problem is simple: bailouts and stimulus plans are funded by issuing more government debt.... The added debt absorbs savings [more...]
Date: 2009-01-15 08:24:00
Chrysler Wants Money, Asks To Become "Independent Lending Corporation"
The requests for handouts keep right on coming: Chrysler seeks to tap relief funding ... that will allow it to tap into the troubled assets relief programme and other sources of credit.The Detroit ... and its talks on debt would pick up pace over the month. Chrysler has already been talking [more...]
Date: 2009-01-07 12:28:00
EuroDollar Futures Selling Off
A: Taking a step back from Manhattan real estate for a moment, I want to point something out ... to accurately hedge LIBOR swaps and other market instruments such as mortgage market debt. The correlation with mortgage market debt is extremely high, higher [more...]
Date: 2009-01-14 16:02:25
Credit Crisis Watch: Gaining Positive Traction
In order to gauge the progress being made to unclog credit markets and restore confidence in the world’s financial system, I monitor a range of financial spreads and other measures. By perusing these, as summarized in this “Credit Crisis Watch” review, [more...]
Date: 2009-01-14 13:30:49
Bond Recovery in Bankruptcies Likely to Be Far Lower Than in Past Downturns
Junk bond yields were recently as high as 20% (they've improved a bit recently). Some commentators considered the record spreads to be overdone ... predecessors, and the usual bottom fishers (private equity funds, wealthy families, "raiders" like Ron [more...]
Date: 2009-01-12 03:41:20
Downturn hits rates of debt recovery
Investors face the prospect of much steeper losses on the debts of distressed companies in the credit crunch than in previous downturns. The combination of the severity of the downturn and the complex structure of corporate debts in the credit boom is reducing rates of recovery of funds invested in companies that default.... [more...]
Date: 2009-01-12 05:39:42
Club Applauds RSC's Alternative Stimulus Plan
Club for Growth Applauds RSC’s Alternative Stimulus Plan Washington – The Club for Growth heralded the Republican Study Committee’s (RSC) ... debt, but are unlikely to stimulate real economic growth. Instead, Congress should consider the Republican Study Committee’s plan with its emphasis on reducing America’s debt, lowering the tax burden [more...]
Date: 2009-01-15 18:08:28
QTM Quantum Corporation Data Storage Devices
QTM has a possible cup setting up. This is one to watch. Small float with 180.28 mil. 79.87 mil in operating cash. Revenue 918.61M ... Total Cash Per Share (mrq): 0.158 Total Debt (mrq): 410.00M Total Debt/Equity (mrq): 1.884 Current ... operates as a storage company that provides backup, recovery, and archive solutions. The company [more...]
Date: 2009-01-04 19:46:23
Stupidest Party AliveTM
People who have endorsed the Republican House caucus's objections to the stimulus package: Donald Luskin, Chief Investment Officer, Trend Macrolytics LLC, Stupidest Man Alive EmeritusTM: "Government spending does not create incentives for labor, innovation and investment [more...]
Date: 2009-01-11 04:57:25
Pertinent Obituary, Dimon Says Worst Not Over, Oil Producers Struggle, The Next Bubble and More!
One company to summarize all of the last 10 years… now on its deathbed Credit crisis survivor predicts “worst… not yet behind us” Oil ... more in the fourth, had a $100 million interest payment due this morning and $4.5 billion in looming debt [more...]
Date: 2009-01-15 19:40:53
Research Oracle roundup for 15 January 2009
Earning Release Shaw Communications Inc.’s (NYSE:SJR) 1Q 09 revenues, EBITDA and operating income were in line with our expectations, while adjusted1 net income was below our estimate. As the overall results were broadly in line with our expectations, we maintain our BUY rating for the common stock [more...]
Date: 2009-01-15 17:34:17
Interest Rates
Most short-term investment issues (other than U.S. governments) ... s. The rating reflects the creditworthiness of the issuer, the amount being raised given existing debt ... default risk, a number of other factors influence the overall rate or yield on an instrument [more...]
Date: 2009-01-15 05:49:04
Sensex sheds 3.45% as US bank crisis deepens
Weak global equities and a deepening banking crisis in the United States pulled the domestic bourses lower in choppy trade. Nevertheless, the market cut sharp intraday losses as index heavyweight Reliance Industries (RIL) and IT pivotals recovered from lower level. The BSE 30-share Sensex lost 323.75 points, or 3.45%, off 100 [more...]
Date: 2009-01-15 14:32:00
Will Huntington Bancshares Raise Cash? (HBAN, HBANP)
Huntington Bancshares Incorporated (NASDAQ: HBAN) ... the repayment of debt, stock buybacks, Investing in subsidiaries, and for acquisitions. Jon C. Ogg January ... , Depositary Shares, Debt Securities, Junior Subordinated Debt Securities, Warrants, Guarantees [more...]
Date: 2009-01-13 20:22:18
The definition of insanity
First off, apologies for going AWOL; I’ve been without heat for six days — I was sincerely grateful for some this morning when the thermometer read ... , and then issued an … ummm … apology. Oopsie. Doesn’t care that the national debt has increased [more...]
Date: 2009-01-15 22:34:43
How Much is a Billion?
As of this writing (January 15, 2009), on the table before Congress is the second “bailout” installment of $350 billion ... , but one advertising agency did a good job of putting that figure into some perspective in one of its releases [more...]
Date: 2009-01-15 17:01:23
How to Hide Debt with Pension Accounting (2)
Pension accounting affects the income statement, the balance sheet, and the cash flow statement ... inasmuch as corporate managers have some discretion to remove assets from the pension plan. The netting ... certain kinds of debt. As such, the pension plan looks like and smells like an SPE. I say [more...]
Date: 2009-01-15 06:43:11
Be Careful What You Wish For.....
You might just get it. The New World Order, A Thousand Points of Light and Socialism. Robert Melaccio, Sr ... young us old timers remember his famous “tear down this wall" quote. However, those who study politics [more...]
Date: 2009-01-15 15:25:32
Reverse Engineering the Rating Agencies
I get odd quant projects. Calculate the value of an odd CDO ... If not a Industrial firm, which is the default, what is the difference in credit quality? Volatility — 90-day ... been around for three years? DebtMC — Debt/Market Capitalization CDebtMC — Change in Debt/Market [more...]
Date: 2009-01-15 04:57:21
Is Israel the next Iceland?
Bloomberg.com reports that Israel may be the next country to be dragged down by the ongoing world financial crisis.The country’s 15 largest real estate companies have about 140 billion shekels in overall debt ... to do so in the future.” About 50 billion shekels of that debt is in the hands of those saving [more...]
Date: 2009-01-15 06:30:00
Black Professionals Aren’t Recession Proof
by Malcolm G. Turner Despite being more educated than our peers, well-spoken, non-threatening, generally good Negroes, ... our unique status as unwilling immigrants and senior claim to the debt owed to us from our free [more...]
Date: 2009-01-15 19:56:14
Peter Schiff Talks Treasury Bubble
Peter Schiff is out with a piece discussing treasuries, entitled 'The Fed's Bubble Trouble ... and agency debt, to fall through the floor, pushing ... . Just as the U.S. government issues mountains of new debt to finance the multi-trillion annual deficits planned [more...]
Date: 2009-01-15 14:03:00
Wall Street Breakfast: Must-Know News
Morgan Stanley Smith Barney. Citigroup (C) and Morgan Stanley (MS) confirmed they're merging their wealth management units into Morgan Stanley Smith Barney. Morgan will pay $2.7B for a 51% stake with the option of taking full control after five years. Citi will book a pre-tax gain of $9.5B, and an after-tax gain of $5.8B [more...]
Date: 2009-01-14 12:15:31
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