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Showing posts with label Wall Street. Show all posts
Showing posts with label Wall Street. Show all posts
Monday, December 5, 2011
Saturday, October 17, 2009
Economic News of Note - 17 Oct 2009
Birth-Rate Study: In Recession, Fewer Women Having Kids - TIME
Another casualty of the recession: Birthrates. US Birthrate down more than 2%.
Apple joins Chamber of Commerce exodus over climate change scepticism | Environment | guardian.co.uk
As fluffy as this may sound, this is a portent of bigger battles between companies that have historically benefited from externalized costs and those that seek a more accurate reflection of the true production costs._____________________
AIG's Benmosche: The tone deaf CEO - Oct. 6, 2009
AIG head is the most tone-deaf CEO out there. Ends with an interesting quote: "He called us idiots, he called us corrupt," said Sherman, the California lawmaker. "I do have to thank this guy for his insults. He caused us to wake up from being completely asleep." He had a hell of deal going (US taxpayers funding his business), but he's so goddamned greedy, he's screwing it up. He just can't help himself._____________________
Rolfe Winkler » Blog Archive » TARP deadbeats | Blogs |
US Taxpayers getting screwed by the bailouts. CITIGROUP amongst the deadbeat bailout recipients. Any talk of the US taxpayer 'making money on this deal' is total bull._____________________
THE CUNNING REALIST: "Shabby Secret"
Great discussion of what's driving the collapse of the dollar. There's no doubt that Obama's spending is causing international concern about the dollar. But just as important is the new status quo of "too big to fail" for the financial sector and what that means for various aspects of Federal Reserve policy. The implicit government guarantee of a few GSEs was an important factor in the financial crisis. There's now an explicit government guarantee of every large financial institution on Wall Street. Almost two years after the Bear Stearns debacle, there are still no plans by the government to unwind or repudiate that guarantee. He also makes a very good point that the current trend may have overplayed itself, at least in the short term._____________________
The Lost Generation - BusinessWeek
Huge unemployment rates for recent graduates. The market you graduate in makes a huge difference in your career. This could be one consequence of the Recession that lasts and lasts. I'm very glad I graduated when I did. Many friends of mine are not so lucky._____________________
China buys the world - Start your engines (8) - FORTUNE
China's global shopping list. The Rio Tinto escapades were particularly interesting._____________________
No shame in walking away from mortgage - The Big Money- msnbc.com
Walking away from mortgages is a legitimate tactic, or so the article argues. The system was designed to prevent debt slavery and to encourage banks to be careful about who they lend to._____________________
Quiet Atlantic hurricane season a boon for insurers | U.S. | Reuters
Insurance companies rake in huge profits on quiet hurricane season, thanks to El Nino.
Ruling could undo thousands of foreclosures - BostonHerald.com
Thousands of foreclosures potentially overturned because of lost paperwork. Was the paperwork lost, or was it destroyed to hide a trail of criminal malfeasance by mortgage brokers?
Emphasis on Growth Is Called Misguided - The New York Times
Poking holes in G.D.P. as a measure of economic health of a country
_____________________
_____________________
Utility Snubbed by Banks Shows States Pay Too Much (Update2) - Bloomberg.com
Government entities get screwed when borrowing money. AAA government debt more expensive than AA- private debt. Utah (AAA rated) was charged 0.11% more on $500 million in bonds than Wal-Mart (AA2/AA). This is a huge disparity and I have no idea why it isn't covered more. Investing in government bonds is about the safest thing you can do and the returns are, in relation to the risk, surprisingly good, but never spectacular. Is there a reason for the institutional bias?
_____________________Europe Richer Than America - Forbes.com
EU now richer than NAFTA. Europe, as a whole, has been hit less by the Recession than the US. _____________________
Sunday, October 11, 2009
An Answer to "Where have all the Hueys gone?"
In these days of "Corporate Communism", how come nobody is standing up against the Wall Street Welfare Queens? It's political red meat, but hardly anybody at all is kicking them where it hurts.
I'd say there are about two exceptions: Ron Paul (R-TX) and Alan Grayson (D-FL). Ron Paul has been at it for a while. Alan Grayson won a red district and has recently made the news for "Democrat with Balls"-style.
Paul and Grayson have teamed up on an "audit the Fed" bill. Some of the testimony has been very impressive:
Even some conservatives are giving him credit.
Other Republicans are scared stiff of a Democrat that actually stands up for what he believes in. Grayson is being attacked with unsourced allegations of antisemitism (in Florida? Please).
My favorite fighting words of Grayson: Republicans want to ban bacon!
Take the time to listen to some of his speeches and judge for yourself.
_______________
*Title Reference and stolen photo. More Huey, please.
UPDATE- One More:
UPDATE 2-
Alan Grayson quotes Huey Long.
UPDATE 3- Yet more. Reublicans running scared...
I'd say there are about two exceptions: Ron Paul (R-TX) and Alan Grayson (D-FL). Ron Paul has been at it for a while. Alan Grayson won a red district and has recently made the news for "Democrat with Balls"-style.
Paul and Grayson have teamed up on an "audit the Fed" bill. Some of the testimony has been very impressive:
Even some conservatives are giving him credit.
Other Republicans are scared stiff of a Democrat that actually stands up for what he believes in. Grayson is being attacked with unsourced allegations of antisemitism (in Florida? Please).
My favorite fighting words of Grayson: Republicans want to ban bacon!
Take the time to listen to some of his speeches and judge for yourself.
_______________
*Title Reference and stolen photo. More Huey, please.
UPDATE- One More:
UPDATE 2-
Alan Grayson quotes Huey Long.
UPDATE 3- Yet more. Reublicans running scared...
Thursday, July 9, 2009
Bad week for Goldman Sachs
If you haven't read The Great Bubble Machine by Matt Taibbi, take the time to do so. It's a very broad article, so it doesn't nail Goldman down as well as a more specific article and it's by no means a complete catalog of their sins, but it captures the scope of Goldman's transgressions and reach.
Goldman Sachs has called even more attention to Taibbi's piece by howling about the article. Here's Taibbi vs. Van Praag (Goldman Vice President/PR-guy nicknamed "Von Doom").
Even the NY Times noted the Goldman's PR shitstorm: The dense revolving-door conflicts of interest are appalling. Goldman is howling about Taibbi’s article, but the bottom line was articulated last week by the economic blogger Felix Salmon of Reuters. He wrote that he couldn’t “think of a single government regulation over the past couple of decades which has remotely harmed Goldman Sachs” as opposed to the many that “have done it a world of good.”
And just to cap it off, a hacker stole some of their secret trading code and shipped it to Eastern Europe.
I think the most devastating indictment of Goldman Sachs came from analyzing their trading for major clients (universities, pension funds, etc.). Zero Hedge has been tracking their trades for major clients and developed a compelling case of Goldman front running major trades. Goldman will buy up some shares, then process the (large volume) purchases for their client, then sell their front-run shares. The institutional purchase will be so large, it moves the market. Goldman is shafting their client and putting trust in the whole system at risk for a fairly small pot of money. How did Goldman respond to Zero Hedge? They pressured the NYSE to stop releasing data that caught their hand in the cookie jar.
There is one bright spot out there: among the requirements being considered in new banking regulations: extremely large reserve requirements for mega-corporations (Citi/Goldman/etc.). Now there's a regulation that would put a crimp on Goldman. If you pose a lot of risk to the system, you have to carry around extra reserves to go along with your risk. We'll see what happens with the regulation.
UPDATE: Goldman will be laughing all the way to the bank. Massive profits for the last remaining investment bank.
"At a time when the supposedly progressive party controls all the political branches of the federal government, our economy is being run like a glorified banana republic." -LGM
Meanwhile, Krugman says more signs pointing to a jobless recovery.
UPDATE 2- Goldman Sachs employee caught doing what they do best (fuck us). Unfortunately, this 15-year-old girl was actually an undercover cop.
UPDATE 3- Bashing Goldman Sachs is a Game for Fools. By Michael Lewis. Bitingly satirical take on Goldman's recent woes. Well worth your time. Lewis has been on a roll with his last few articles.
Goldman Sachs has called even more attention to Taibbi's piece by howling about the article. Here's Taibbi vs. Van Praag (Goldman Vice President/PR-guy nicknamed "Von Doom").
Even the NY Times noted the Goldman's PR shitstorm: The dense revolving-door conflicts of interest are appalling. Goldman is howling about Taibbi’s article, but the bottom line was articulated last week by the economic blogger Felix Salmon of Reuters. He wrote that he couldn’t “think of a single government regulation over the past couple of decades which has remotely harmed Goldman Sachs” as opposed to the many that “have done it a world of good.”
And just to cap it off, a hacker stole some of their secret trading code and shipped it to Eastern Europe.
I think the most devastating indictment of Goldman Sachs came from analyzing their trading for major clients (universities, pension funds, etc.). Zero Hedge has been tracking their trades for major clients and developed a compelling case of Goldman front running major trades. Goldman will buy up some shares, then process the (large volume) purchases for their client, then sell their front-run shares. The institutional purchase will be so large, it moves the market. Goldman is shafting their client and putting trust in the whole system at risk for a fairly small pot of money. How did Goldman respond to Zero Hedge? They pressured the NYSE to stop releasing data that caught their hand in the cookie jar.
There is one bright spot out there: among the requirements being considered in new banking regulations: extremely large reserve requirements for mega-corporations (Citi/Goldman/etc.). Now there's a regulation that would put a crimp on Goldman. If you pose a lot of risk to the system, you have to carry around extra reserves to go along with your risk. We'll see what happens with the regulation.
UPDATE: Goldman will be laughing all the way to the bank. Massive profits for the last remaining investment bank.
"At a time when the supposedly progressive party controls all the political branches of the federal government, our economy is being run like a glorified banana republic." -LGM
Meanwhile, Krugman says more signs pointing to a jobless recovery.
UPDATE 2- Goldman Sachs employee caught doing what they do best (fuck us). Unfortunately, this 15-year-old girl was actually an undercover cop.
UPDATE 3- Bashing Goldman Sachs is a Game for Fools. By Michael Lewis. Bitingly satirical take on Goldman's recent woes. Well worth your time. Lewis has been on a roll with his last few articles.
Sunday, May 3, 2009
Book Reviews
Since Candice has been dragging me to Rue while she does homework, I've had plenty of reading time. Just finished a couple of books and here are some thoughts.
The Radioactive Boy Scout. By Ken Silverstein. The author backtracks the adventure of David Hahn, a teenager who constructs a scarily-close-to-viable breeder reactor in his mother's garage. The book is a pretty quick read (only a few hundred pages) and flows well. The author cuts between narrations of Hahn's experiments and disasters in the atomic power industry. For an English major, he does an incredible job at keeping his facts straight. He still gets the penetration of Beta particles wrong and misattributes a few quotes. It could have used a more thorough fact checking.
What sort of bugged me was he was blatantly anti-nuke throughout the whole book. The author's Wikipedia page notes "Silverstein is a self-described "gadfly" in the newspaper business, and an opponent of what he considers "false 'balance'" in the news media." That's fine and all for, say political reporting, but for scientific reporting, that starts down a slippery path. He also takes a few jabs at the Boy Scouts. He spends almost a chapter talking about how Baden Powell had a fixation on stopping masturbation and was a closeted fascist.
Still and all, it's a quick read, it's an interesting subject, and it's well written. If you read it, just keep that bias in mind as he narrates certain subjects.
********************************
I've been trying to work through the "must reads" list. I've been reading Huey Long, by T Harry Williams since the fall semester. It's a thick book, so it's taken me a while (those of you following me on twitter will note my occasional posts the past few months).
Huey Long is one of the most fascinating characters in American History. Every biography of him has taken the stance right from the start that he is either a saint or a scoundrel. Only one has stayed fairly objective and that's the best one. To this day, no scholar can top T Harry Williams' book.
Despite being a little dated in writing style (and vocabulary), I found it a lively read, due in no small part to the subject. The book is exhaustively researched and well annotated.
Some of the most interesting parts of the book:
* Huey Long had a photographic memory. He remembered every word from every book he ever read. An amazing gift for a politician to have.
* Some of Huey's speeches seem like they were written yesterday. A sample:
Mr. Hopkins [WPA] announced twenty-two millions on the dole [Food Stamps], a new high-water mark in that particular sum, a few weeks ago. We find not only the people going further into debt, but that the United States is going further into debt. The states are going further into debt, and the cities and towns are even going into bankruptcy. The condition has become deplorable. Instead of his promises, the only remedy that Mr. Roosevelt has prescribed is to borrow more money if he can and to go further into debt. The last move was to borrow $5 billion [imagine trillion today] more on which we must pay interest for the balance of our lifetimes, and probably during the lifetime of our children. And with it all, there stalks a slimy specter of want, hunger, destitution, and pestilence, all because of the fact that in the land of too much and of too much to wear, our president has failed in his promise to have these necessities of life distributed into the hands of the people who have need of them.
* Huey constantly railed against FDR for appointing Merril bankers to his cabinet. The criticisms have been made of Obama and Goldman Sachs.
* I think one of the things that sets the book above the rest is it's as much a chronicle of the subject's enemies as it is about the subject of the biography. You can't understand Huey's actions without understanding what he was up against.
* While Huey might have started out doing things for the right reasons, once he became a Senator, he started to lose control of his machine. It started to take on a momentum all its own. Huey had to constantly supervise every little detail of its operation. After his death, the machine had total control of the state without someone like Huey to restrain it. I suspect these postmortem excesses might have hurt Huey's reputation more than the record shows he did.
* The person that I thought reminded me the most of Huey Long was The Gracchi of Ancient Rome.
* Huey Long played an important part in FDR's administration. He pulled the administration hard to the left. The things FDR is really remembered for, like Social Security, were things Huey stumped for and FDR implemented to take away Huey's fire. Even then, Huey lambasted FDR for not going far enough in his reforms.
I know the term must-read is over used, but if you're interested in Louisiana politics, T Harry Williams' biography is a must read.
Some supplemental video:
The Radioactive Boy Scout. By Ken Silverstein. The author backtracks the adventure of David Hahn, a teenager who constructs a scarily-close-to-viable breeder reactor in his mother's garage. The book is a pretty quick read (only a few hundred pages) and flows well. The author cuts between narrations of Hahn's experiments and disasters in the atomic power industry. For an English major, he does an incredible job at keeping his facts straight. He still gets the penetration of Beta particles wrong and misattributes a few quotes. It could have used a more thorough fact checking.
What sort of bugged me was he was blatantly anti-nuke throughout the whole book. The author's Wikipedia page notes "Silverstein is a self-described "gadfly" in the newspaper business, and an opponent of what he considers "false 'balance'" in the news media." That's fine and all for, say political reporting, but for scientific reporting, that starts down a slippery path. He also takes a few jabs at the Boy Scouts. He spends almost a chapter talking about how Baden Powell had a fixation on stopping masturbation and was a closeted fascist.
Still and all, it's a quick read, it's an interesting subject, and it's well written. If you read it, just keep that bias in mind as he narrates certain subjects.
********************************
I've been trying to work through the "must reads" list. I've been reading Huey Long, by T Harry Williams since the fall semester. It's a thick book, so it's taken me a while (those of you following me on twitter will note my occasional posts the past few months).
Huey Long is one of the most fascinating characters in American History. Every biography of him has taken the stance right from the start that he is either a saint or a scoundrel. Only one has stayed fairly objective and that's the best one. To this day, no scholar can top T Harry Williams' book.
Despite being a little dated in writing style (and vocabulary), I found it a lively read, due in no small part to the subject. The book is exhaustively researched and well annotated.
Some of the most interesting parts of the book:
* Huey Long had a photographic memory. He remembered every word from every book he ever read. An amazing gift for a politician to have.
* Some of Huey's speeches seem like they were written yesterday. A sample:
Mr. Hopkins [WPA] announced twenty-two millions on the dole [Food Stamps], a new high-water mark in that particular sum, a few weeks ago. We find not only the people going further into debt, but that the United States is going further into debt. The states are going further into debt, and the cities and towns are even going into bankruptcy. The condition has become deplorable. Instead of his promises, the only remedy that Mr. Roosevelt has prescribed is to borrow more money if he can and to go further into debt. The last move was to borrow $5 billion [imagine trillion today] more on which we must pay interest for the balance of our lifetimes, and probably during the lifetime of our children. And with it all, there stalks a slimy specter of want, hunger, destitution, and pestilence, all because of the fact that in the land of too much and of too much to wear, our president has failed in his promise to have these necessities of life distributed into the hands of the people who have need of them.
* Huey constantly railed against FDR for appointing Merril bankers to his cabinet. The criticisms have been made of Obama and Goldman Sachs.
* I think one of the things that sets the book above the rest is it's as much a chronicle of the subject's enemies as it is about the subject of the biography. You can't understand Huey's actions without understanding what he was up against.
* While Huey might have started out doing things for the right reasons, once he became a Senator, he started to lose control of his machine. It started to take on a momentum all its own. Huey had to constantly supervise every little detail of its operation. After his death, the machine had total control of the state without someone like Huey to restrain it. I suspect these postmortem excesses might have hurt Huey's reputation more than the record shows he did.
* The person that I thought reminded me the most of Huey Long was The Gracchi of Ancient Rome.
* Huey Long played an important part in FDR's administration. He pulled the administration hard to the left. The things FDR is really remembered for, like Social Security, were things Huey stumped for and FDR implemented to take away Huey's fire. Even then, Huey lambasted FDR for not going far enough in his reforms.
I know the term must-read is over used, but if you're interested in Louisiana politics, T Harry Williams' biography is a must read.
Some supplemental video:
Friday, April 10, 2009
White Collar Crime
I can't post the clip (thank you, Viacom), but there was a great episode of the Chappelle Show where they contrasted the treatment of blue collar criminals with white collar criminals, except in the sketch, they were flipped. The ponzi-scheme mastermind had his home invaded by machine gun toting police, his dog was shot, his wife and kid dragged out of bed, and he was badly beaten before being thrown in central lockup in his underwear. The drug runner (played by Chappelle) was hauled before a Senate subcommittee, asked questions (very courteously) by the senators, and he took the fifth, or in Chappelled case, "I take the fif."
Well, white collar crime does a hell of a lot of damage to this country. Look at the huge mess in the financial world, much of which was caused by blatantly illegal acts. Here are a few episodes of white collar crime that stick out.
Lawyers are "Life Support" for organized crime. Related:
Defense Lawyer Charged With Witness Tampering. More lawyers should see the inside of prison, and I don't mean visiting clients...
Joe Cassano peers out his spider-hole. Looks like the Feds are homing in on the dude that was chronicled in Matt Taibbi's piece. Exiled suggests he have his teeth removed, so they're not punched out for him in prison (I'll leave it to your imagination to figure out why).
Papers Show Wachovia Knew of Thefts - New York Times. Wachovia aids telemarketing fraudsters because of lucrative fees... Related (?): 24 indicted for mortgage fraud ring. Wouldn't be surprised if it turns out the banks didn't check these mortgage applications as closely as they were required to, because they the bank got to bundle up the fraudulent mortgages into a mortgage-backed security and make a boatload of money selling it to pension funds, Chinese investors, etc. Suckers! More related: "Very clever."
Morgan Stanley's 13% Payout Offer To Short Ford Stock. MS using taxpayer funds to short Ford, the only domestic automaker still hanging on strong (at least for now).
How helpful are your bankers? Well, try banking with UBS. Their so helpful, they'll even smuggle diamonds in toothpaste past the TSA for you. Now, many UBS clients are facing huge IRS fines and possibly even jail time for willful acts of tax evasion on a massive scale. Some of the tax evaders are crying their eyes out to their lawyers. Bo-hoo. Fuck 'em.
Well, white collar crime does a hell of a lot of damage to this country. Look at the huge mess in the financial world, much of which was caused by blatantly illegal acts. Here are a few episodes of white collar crime that stick out.
Lawyers are "Life Support" for organized crime. Related:
Defense Lawyer Charged With Witness Tampering. More lawyers should see the inside of prison, and I don't mean visiting clients...
Joe Cassano peers out his spider-hole. Looks like the Feds are homing in on the dude that was chronicled in Matt Taibbi's piece. Exiled suggests he have his teeth removed, so they're not punched out for him in prison (I'll leave it to your imagination to figure out why).
Papers Show Wachovia Knew of Thefts - New York Times. Wachovia aids telemarketing fraudsters because of lucrative fees... Related (?): 24 indicted for mortgage fraud ring. Wouldn't be surprised if it turns out the banks didn't check these mortgage applications as closely as they were required to, because they the bank got to bundle up the fraudulent mortgages into a mortgage-backed security and make a boatload of money selling it to pension funds, Chinese investors, etc. Suckers! More related: "Very clever."
Morgan Stanley's 13% Payout Offer To Short Ford Stock. MS using taxpayer funds to short Ford, the only domestic automaker still hanging on strong (at least for now).
How helpful are your bankers? Well, try banking with UBS. Their so helpful, they'll even smuggle diamonds in toothpaste past the TSA for you. Now, many UBS clients are facing huge IRS fines and possibly even jail time for willful acts of tax evasion on a massive scale. Some of the tax evaders are crying their eyes out to their lawyers. Bo-hoo. Fuck 'em.
Tuesday, October 21, 2008
Hedge Fund Manager calls it quits
Jeffery, you have a new hero:
Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.
Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, "What I have learned about the hedge fund business is that I hate it." I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.
There are far too many people for me to sincerely thank for my success. However, I do not want to sound like a Hollywood actor accepting an award. The money was reward enough. Furthermore, the endless list those deserving thanks know who they are.
I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.
So this is it. With all due respect, I am dropping out. Please do not expect any type of reply to emails or voicemails within normal time frames or at all. Andy Springer and his company will be handling the dissolution of the fund. And don't worry about my employees, they were always employed by Mr. Springer's company and only one (who has been well-rewarded) will lose his job.
I have no interest in any deals in which anyone would like me to participate. I truly do not have a strong opinion about any market right now, other than to say that things will continue to get worse for some time, probably years. I am content sitting on the sidelines and waiting. After all, sitting and waiting is how we made money from the subprime debacle. I now have time to repair my health, which was destroyed by the stress I layered onto myself over the past two years, as well as my entire life -- where I had to compete for spaces in universities and graduate schools, jobs and assets under management -- with those who had all the advantages (rich parents) that I did not. May meritocracy be part of a new form of government, which needs to be established.
On the issue of the U.S. Government, I would like to make a modest proposal. First, I point out the obvious flaws, whereby legislation was repeatedly brought forth to Congress over the past eight years, which would have reigned in the predatory lending practices of now mostly defunct institutions. These institutions regularly filled the coffers of both parties in return for voting down all of this legislation designed to protect the common citizen. This is an outrage, yet no one seems to know or care about it. Since Thomas Jefferson and Adam Smith passed, I would argue that there has been a dearth of worthy philosophers in this country, at least ones focused on improving government.
Capitalism worked for two hundred years, but times change, and systems become corrupt. George Soros, a man of staggering wealth, has stated that he would like to be remembered as a philosopher. My suggestion is that this great man start and sponsor a forum for great minds to come together to create a new system of government that truly represents the common man's interest, while at the same time creating rewards great enough to attract the best and brightest minds to serve in government roles without having to rely on corruption to further their interests or lifestyles. This forum could be similar to the one used to create the operating system, Linux, which competes with Microsoft's near monopoly. I believe there is an answer, but for now the system is clearly broken.
Lastly, while I still have an audience, I would like to bring attention to an alternative food and energy source. You won't see it included in BP's, "Feel good. We are working on sustainable solutions," television commercials, nor is it mentioned in ADM's similar commercials. But hemp has been used for at least 5,000 years for cloth and food, as well as just about everything that is produced from petroleum products. Hemp is not marijuana and vice versa. Hemp is the male plant and it grows like a weed, hence the slang term. The original American flag was made of hemp fiber and our Constitution was printed on paper made of hemp. It was used as recently as World War II by the U.S. Government, and then promptly made illegal after the war was won. At a time when rhetoric is flying about becoming more self-sufficient in terms of energy, why is it illegal to grow this plant in this country?
Ah, the female. The evil female plant -- marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country. My only conclusion as to why it is illegal, is that Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other additive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers. This policy is ludicrous. It has surely contributed to our dependency on foreign energy sources. Our policies have other countries literally laughing at our stupidity, most notably Canada, as well as several European nations (both Eastern and Western). You would not know this by paying attention to U.S. media sources though, as they tend not to elaborate on who is laughing at the United States this week. Please people, let's stop the rhetoric and start thinking about how we can truly become self-sufficient.
With that I say good-bye and good luck.
All the best,
Andrew Lahde
Saint Lahde?
Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.
Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, "What I have learned about the hedge fund business is that I hate it." I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.
There are far too many people for me to sincerely thank for my success. However, I do not want to sound like a Hollywood actor accepting an award. The money was reward enough. Furthermore, the endless list those deserving thanks know who they are.
I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.
So this is it. With all due respect, I am dropping out. Please do not expect any type of reply to emails or voicemails within normal time frames or at all. Andy Springer and his company will be handling the dissolution of the fund. And don't worry about my employees, they were always employed by Mr. Springer's company and only one (who has been well-rewarded) will lose his job.
I have no interest in any deals in which anyone would like me to participate. I truly do not have a strong opinion about any market right now, other than to say that things will continue to get worse for some time, probably years. I am content sitting on the sidelines and waiting. After all, sitting and waiting is how we made money from the subprime debacle. I now have time to repair my health, which was destroyed by the stress I layered onto myself over the past two years, as well as my entire life -- where I had to compete for spaces in universities and graduate schools, jobs and assets under management -- with those who had all the advantages (rich parents) that I did not. May meritocracy be part of a new form of government, which needs to be established.
On the issue of the U.S. Government, I would like to make a modest proposal. First, I point out the obvious flaws, whereby legislation was repeatedly brought forth to Congress over the past eight years, which would have reigned in the predatory lending practices of now mostly defunct institutions. These institutions regularly filled the coffers of both parties in return for voting down all of this legislation designed to protect the common citizen. This is an outrage, yet no one seems to know or care about it. Since Thomas Jefferson and Adam Smith passed, I would argue that there has been a dearth of worthy philosophers in this country, at least ones focused on improving government.
Capitalism worked for two hundred years, but times change, and systems become corrupt. George Soros, a man of staggering wealth, has stated that he would like to be remembered as a philosopher. My suggestion is that this great man start and sponsor a forum for great minds to come together to create a new system of government that truly represents the common man's interest, while at the same time creating rewards great enough to attract the best and brightest minds to serve in government roles without having to rely on corruption to further their interests or lifestyles. This forum could be similar to the one used to create the operating system, Linux, which competes with Microsoft's near monopoly. I believe there is an answer, but for now the system is clearly broken.
Lastly, while I still have an audience, I would like to bring attention to an alternative food and energy source. You won't see it included in BP's, "Feel good. We are working on sustainable solutions," television commercials, nor is it mentioned in ADM's similar commercials. But hemp has been used for at least 5,000 years for cloth and food, as well as just about everything that is produced from petroleum products. Hemp is not marijuana and vice versa. Hemp is the male plant and it grows like a weed, hence the slang term. The original American flag was made of hemp fiber and our Constitution was printed on paper made of hemp. It was used as recently as World War II by the U.S. Government, and then promptly made illegal after the war was won. At a time when rhetoric is flying about becoming more self-sufficient in terms of energy, why is it illegal to grow this plant in this country?
Ah, the female. The evil female plant -- marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country. My only conclusion as to why it is illegal, is that Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other additive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers. This policy is ludicrous. It has surely contributed to our dependency on foreign energy sources. Our policies have other countries literally laughing at our stupidity, most notably Canada, as well as several European nations (both Eastern and Western). You would not know this by paying attention to U.S. media sources though, as they tend not to elaborate on who is laughing at the United States this week. Please people, let's stop the rhetoric and start thinking about how we can truly become self-sufficient.
With that I say good-bye and good luck.
All the best,
Andrew Lahde
Saint Lahde?
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