One thing everyone can agree on in the short term is dealing with the fiscal cliff. Chanos, who has asked Republicans to be more specific with their plans to raise revenues. “It’s all well and good to say ‘I want to lower rates or at least not raise them and I want to close loopholes.’ My answer is, which ones? Be specific, please. List them in order,” he said. Once you start going to things like mortgage interest deductions or charitable contributions, you begin to realize that tears the economic fabric in other ways. How about we start with carried interest? No one seems to want to put that on the table. What about corporations accruing but not paying their federal taxes by keeping their profits offshore?” [AR]
Kynikos
Jim Chanos Wants To See Some Real Ideas For Tackling The Fiscal Cliff And He Wants Them In 12-Point Font, Single-Spaced, Not Scribbled Out On A Crumpled Up Cocktail Napkin
By Bess LevinJim Chanos, founder of New York- based hedge fund Kynikos Associates, said New Yorkers don’t appreciate the impact the government bank bailouts have had on other U.S. citizens. “New York is so finance-centric that people here underappreciate the reaction of the rest of the country,” Chanos said today in an interview in New York. “People are angry, they feel the game is rigged, that they didn’t get their fair shake.” Chanos, 53, who was born in Milwaukee, said the “disjointed” nature of the Occupy Wall Street demonstration, which started last month in New York’s financial district and spread to cities such as Washington and Seattle, shouldn’t be underestimated because protests in the sixties started in a similar way. [Bloomberg]
Remember the Fairfax Financial vs hedge funds bit? Five years ago, the Canadian insurer got it in its head that SAC Capital, Kynikos and Third Point conspired together to drive down the company’s stock and that part of its plan was to “spread disinformation to business journalists” who, as pawns in their game, would help disseminate the negative news re the neighbors to the north. Anyway, this thing is still going on and last month, Third Point subpoenaed a bunch of reporters though apparently had a change of heart on using their depositions. Read more »
Chanos: “I have a problem with private capital asking for lower tax rates on certain forms of income that I believe are income, not returns on capital, than say teachers, soldiers, fireman and policeman”
By Bess Levin
We’ve long been of the opinion that what the Real Housewives series could really use is a hedge fund edition. Alex Cohen, Biff’s old lady, Eddie’s girl, Mrs. PTJ would all make for sensational television and I know I’m not alone in saying I would truly do unspeakable things to have Lisa Falcone and her piano-playing pig in my living room every Thursday night. Andrea Tong? Stop, I can’t even. Still, it’s been a bit of a tough sell, what with many of their husbands wanting to avoid publicity, and so on and so forth. But! I think we may actually be able to get this thing off the ground, thanks to two worlds colliding over the weekend. As we told you a couple weeks back, DealBreaker favorite Jim Chanos and Real Housewives of New York cast member LuAnn De Lesseps were scheduled to attend a gala event for the Miracle House charity (Chanos was being honored for his contributions, and De Lesseps was hosting the shindig). We weren’t sure if the two would hit it off but our fears were apparently entirely misplaced, ’cause hit it off they did. I’m talking role-playing on the first date hit it off. Read more »
This Memorial Day in Bridgehampton, Kynikos founder Jim Chanos will be honored for his contributions to Miracle House, a charity “a charity that helps caregivers and patients who come to New York in search of medical treatment.” This is lovely and Jim is very generous. That’s not what we’re here to talk about. What we’re here to talk about is the host, LuAnn de Lesseps. The artist formerly known as “The Countess” is a cast member of the New York edition of Real Housewives. Except that LuAnn is no housewife, having divorced her husband, THE COUNT (pictured at left with his former lady), last year. (I’m not proud that I watch this show but I’m not embarrassed either.) LuAnn started off this season on the prowl and now she is getting desperate. Last week she went on a date with a guy named Courte who has who has highlights. She’s also looking for a place to bunk in NYC, having lost the UES townhouse in the settlement and being relegated to the Hamptons home. And, and I feel terrible for judging a reality show housewife by her cover, but I’m thinking she might be looking to land a rich guy. Finally, and most importantly, she’s trying to get her music career off the ground. Jim, we’re warning you because we care. Read more »
[via BI]
Subprime? Banking crisis? Currency and sovereign debt crisis? Male pattern baldness? Shrinkage? Take a little responsibility or at least go bark up some other tree. Jim Chanos is no longer interested.
Fairfax Financial, a Canadian Insurer, still has it in their head that some of the most feared and respected hedge funds got non-public information about the company and spread it around the street encouraging their buddies to short the heck out of the stock.
Matt Goldstein, at Reuters, is now reporting that the SEC has taken notice of an on-going civil suit Fairfax filed, in 2006, against noted short-seller Jim Chanos and Stevie Cohen and has started their own investigation. One that Reuters thinks will involve these titans’ funds into being forced to turn over any and all trading records to the folks that missed the Madoff Ponzi scheme.
Cityfile reports that Jim Chanos has closed on a triplex at 3 East 75th Street (neighbors!). Chanos paid $20.365 million two months ago for the 7,800 square foot space. In the same way that rich people often have so many rooms they don’t know what to do with them all and end up devoting one to a single activity such as the Gift Wrapping Room, Chanos’s abode will include a 20×20 reserved specifically for candle-lit Ouija board sessions (really not that frivolous when you consider that it’s an integral part of the short selling biz. There will also be a guest bed for Alfred Winslow Jones, often summoned in the O-room during idea sessions (slumber parties) with the boys (Einhorn, Ackman, Tilson).
Related: The “Wizards” Of Short Selling
Joanna Shields Buys, Jim Chanos Closes [Cityfile]
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