Goldman Chiefs Forgo Bonuses (Reuters)
In the highest profile move of the sort thus far, we're seeing the heads of GS turn and cough. Here's the part that really irks the shit out of me:
"New York Attorney General Andrew Cuomo said Goldman had taken "an important step in the right direction.""
It takes a special kind of arrogance to stand up and tell men that have collectively given up ~3ooMM in personal pay that you approve, especially when done in such a thoroughly condescending I-know-better-than-you we're-all-proud-of-you-son paternal tone.
Genital Warts have more appeal.
Harftord To Become S&L, Seek Bailout (DJNW)
In a move that's becoming more popular as instability progresses, Harford is moving to acquire Federal Trust Corp., a thrift holding company established in Florida, and filing for S&L status.
The words "S&L" and "Bailout" have such a beautiful tone to them, I wonder why they aren't used in conjunction more often?
A Reminder Of Looming Palace Intrigue (CNBC)
Citi is going to be holding its Town Hall meeting this morning addressing the all popular topics "why we're so great", "and we kick ass" - just before they announce further layoffs. Granted, it probably won't be immediate, but I can imagine that embedded in the speech somewhere will be lines like "These are tough times, and tough decisions are required to pull this company that we all love through them."
Convertible Bond Funds Not Having A Good Year (WSJ)
The Culprit:
"But for a strategy that uses leverage to exploit often small market inefficiencies, one of the biggest problems has been banks reducing leverage and insisting on more capital upfront."
ABCPMMMFLF: Actually A Federal Acronym (Bloomberg)
Firstly, it's important to consider just how dumb that is.
Outside of that, this is a program that I could actually get behind: the government is buying up to $1.4T in Paper from eligible institutions, and it appears to be working.
If Detroit Falls, Foreign Makers Could Be Buffer (NYT)
This isn't plausible: the lag would be too long, jobs would be scarce, and the long term impact could prove devastating.
GM has to survive, as much as I dislike it, and so does Ford in all probability; Chrysler doesn't show much hope. If we just look at the numbers for GM (from the article) we're talking about 100k jobs, and if you consider the entire of the auto industry and the network that it relies on, we're looking at 2.3% of the economic output of the country.
There's also this to consider: by the sheer fact that we manufacturer (our) cars in this country we create a competitive environment helping to stabilize prices. If we no longer do that, we're at the will of foreign importers in whole, who can set their price points without regard (well, kind of).
British Economy Balks (AP)
The Confederation of British Industry is calling for GDP growth of -1.7% in 2009.
IMF Needs Money (BBC)
Objectivists generally dislike me for my level of philanthropic endeavor, but even I find this humorous. Why is it that in any "crisis" people have to hold hundreds of meetings in an eager attempt to look so terribly important?
I would argue that the danger facing smaller, less stable countries isn't considerably more urgent or dire that just a short while ago, and further that the injection of this money is nothing more than show. The idea that millions, or hundreds of millions, or even billions of dollars is going to right-size an economy that has thus far barely tread water (even in the brightest of circumstances) is borderline absurd; effectively like handing out umbrellas in a hurricane.
And the larger countries, their issues are largely structural; there isn't much that the IMF can do there, either.
U.S. Unemployment To Peak At 7.5% (Reuters)
According to a survey we should find the bottom at 7.5%
Isn't that the number that J.P. Morgan Chase came up with in the WaMu presentation?
--William Richards
Posted by guest , Nov 17, 2008 8:21AM
please stop posting that cuomo pic, its obnoxious
Posted by guest , Nov 17, 2008 8:28AM
Anyone think GS has cut bonus's for senior executives ahead of another visit to the fed for more money?
Posted by guest , Nov 17, 2008 8:34AM
@2 No
Posted by ab , Nov 17, 2008 8:35AM
"If we no longer do that, we're at the will of foreign importers in whole, who can set their price points without regard (well, kind of)."
Right. Just like toys and clothes, where those damn Chinese and Vietnamese have us at their mercy. Its tough to find a cheap pair of socks these days.
Posted by guest , Nov 17, 2008 8:36AM
GS cut pay as a PR ploy. They'll make it up to those guys through a private investment or over the next 10 years or something. You can bet they'll come out ahead on this one.
Man, it must sucks at Citi today. Who calls a "town hall" to announce cutting 50,000 jobs "over time." That's only going to encourage every producer to go elsewhere while the useless layers of management spend all of their time desperately clinging to power and a paycheck.
Pandi - you gotta do it all in one fell swoop and let the survivors get back to work with a clear future.
Posted by guest , Nov 17, 2008 8:50AM
So Blankfein will forgo a $50MM payday? This from a man who has raked in enough dough from GS it would make a French baker blush. Look at the shares he had been given (agreed, probably not worth as much as 6 months ago, but still a large chunk). Look at the cash he has been collecting from GS over the past 10 years. Look at the favorable investment deals he gets to participate in. Don't feel sorry for the man, this is chump change for him. Instead feel sorry for the operations and back office folks who were let go so that these fools could continue raking in the bucks.
Posted by guest , Nov 17, 2008 8:55AM
"It takes a special kind of arrogance to stand up and tell men that have collectively given up ~3ooMM in personal pay that you approve, especially when done in such a thoroughly condescending I-know-better-than-you we're-all-proud-of-you-son paternal tone."
you're a f---ing crybaby. who the f--- are these ppl ? oh thank you master, you renounced a 300m bonus for the greater good. f--- them and their crackwhores (like you)
Posted by guest , Nov 17, 2008 9:08AM
@ 6 -
sorry, it's hard to feel sorry for ANYONE at GS...
Posted by guest , Nov 17, 2008 9:24AM
I am not sure who I feel less sorry for, the execs at Goldman or the US auto industry. The economy certainly did't cause their problems. Who actually wants to own an American car? Christ, just copy a Japanese or German car and you would do a better job than your doing now.
I strongly disagree that we cannot let the US auto industry fail. Don't forget that there are dozens of auto factories in the USA, apart from GM or Ford.
If anything it will just fix one more large and festering problem within the US economy.
Posted by guest , Nov 17, 2008 9:30AM
I only feel sorry for chumnps which are too dumb to ever get a job in finance in the first place and now roam the messageboards of sites like this venting their ugly frustrations about their sad, mediocre careers.
That is you, 7
Posted by NotNasser , Nov 17, 2008 10:05AM
How does one pronounce ABCPMMMFLF?
If it doesn't have a pronounciation, after all, it isn't really an "acronym," just a set of initials.
"ab-cap-em-fluff" might work.
Posted by guest , Nov 17, 2008 10:06AM
ford and gm can collapse. my used benz built in the south hasn't given me any problems
Posted by guest , Nov 17, 2008 10:17AM
bill, my friend, you are an a**
Posted by guest , Nov 17, 2008 10:37AM
Goldman Sachs has already made a ton of money off of this crisis they helped create with their Federal Reserve Kabal - Greenspan, Paulson, Bernenke, etc...
While the Government bends over backwards to placate wealthy companies like GS, we are being screwed out of our homes by lenders who will not negotiate loss mitigation in good faith:
http://yourmortgageoryourlife.wordpress.com/2008/11/04/a-hardship-letter-to-countrywide-family-on-the-brink-of-disaster/
They will make more money reposessing our homes and taking our tax dollars too.
Hey, where do I go to declare myself a bank so I can get my TARP funds?
Posted by guest , Nov 17, 2008 10:38AM
7 to 10 : Quelle finesse psychologique ! Nothing extraordinary in finance, it's very average intellectualy speaking, crowded with incomptent assholes (no productivity gains from finance, imaginary alpha: no one beats trackers in the long run), the only nice thing is the pay which is of little importance to me: who the fuck cares about the size of the bonus of Blankfein beside his wife and whores like you.
oh and BTW, the ONLY interest of this blog is to make fun of the ridiculous sense of entitlment in this decadent (and dying) world. That's why I appreciate your childish remarks they're exquisite, please give me more of your intelligence ;)
Posted by guest , Nov 17, 2008 2:15PM
#15 -- Is that you Mr. Obama?
Posted by guest , Nov 17, 2008 2:16PM
#15 -- Is that you Mr. Obama?
Posted by guest , Nov 17, 2008 2:18PM
#15 -- Is that you Mr. Obama?
Posted by guest , Nov 17, 2008 2:36PM
15, you suck
Posted by guest , Nov 17, 2008 4:01PM
@15 - For being so dismissive, you seem awfully fixated on the industry. I sense a chip on a shoulder.
Posted by guest , Nov 17, 2008 6:28PM
The politicians won't be so happy when they take a look at the tax rolls. Take a few billion in bonuses away at a 35% federal and 7-9% state tax bracket, and it can add up. Remember John Gault.