As you know, Harbinger Capital currently has a big bet going on a wireless company called LightSquared. Should it succeed, Phil Falcone will make billions and his investors will receive the triple digit returns they scored on subprime. Should it fail…we don’t even want to go there but the victims will not be faceless and include but are certainly not limited to Lisa Falcone’s outfits (people in and of themselves) and the family’s cabaret performing pig. So far, unfortunately, LightSquared, illiquid shares of which were recently awarded to redemption-seeking investors, has encountered a few bumps in the road (as one often does when one is doing groundbreaking, visionary-esque work). Last month, it was reported that government tests indicated the company would not only cause “devastating interference” to all GPS devices in range but, according to the National Space-Based Positioning, Navigation and Timing Systems Engineering Forum, would “degrade global-positioning system navigation devices that are nearby and as far away as outer space.” LightSquared responded by promising “a workable solution for the small number” of GPS devices “that may be at risk,” but now it seems the venture has bigger problems than Mars on its hands– the boating community, which is pissed. Read more »
Things have been going prettay prettay prettay well for Richard Perry these last six months. His fund, Perry Capital, is up nine percent year to date, his beastly neighbors have quit bitching about the fact that he was burning their eyes out, and this past weekend, his daughter got married to a HBS grad who could potentially take over the family business one day (the SIL is an analyst at the Baupost Group). And speaking of the nuptials! Richie can be credited with not only making sure the celebration had the puffiest shrimp money could buy and a cake that was to die for but delightful ambiance and riveting entertainment for his guests as well. Read more »
It’s really disheartening to hear about consumers cutting back on spending when they should be, if anything, ramping up ridiculous, unnecessary, horrifically indulgent purchases, as if to say S a D, Nouriel Roubini. And yet they’re not, particularly in America because a. people here believe in this mythical “recession” and b. people here are pussies. Pussies that could learn a thing or two from the superwealthy in Eastern Europe, Russia, the Middle East, who currently snapping up not just yachts but thirty million dollar “megayachts” while John Devaney quietly weeps on his twenty-five foot power boat. I encourage every DealBreaker reader to get out there and pick up one of these things, whether or not you think 6,500 square feet of interior living space, 3,500 square of feet exterior space, and 15 bathrooms is a bit much. It’s not about you, it’s about the economy. If Jimmy “I’m Doing It For The Greater Good” Cayne can man up and start buying White Widow by the barrel, you can do this.
Related: When Hedge Fund Losses Hit Home
As Economy Slips, Yacht Sales Skyrocket [ABC]