“Cash as a physical entity will virtually cease to exist, with coins and checkbooks consigned to museums. As people conduct their financial transactions on hand-held devices made secure by advanced biometrics, even tipping will be done electronically. Paper currency does not disappear entirely, however. You’ll still need it to buy a beer at a certain dusty bar in the Australian outback, where the proprietor sticks stubbornly to a cash-only policy, ‘because you never know, mate!’” [WSJ]
Los Angeles Clippers owner Donald Sterling has a right to pursue his $1 billion federal lawsuit against the National Basketball Association, but the 80-year-old might not live to see the end result, millionaire businessman Kevin O’Leary told CNBC on Tuesday. “This will not be resolved until Mr. Sterling is dead because this is going to last three to seven years … I don’t think he’s going to outlast the litigation. It’ll get settled after he’s passed,” said O’Leary. [CNBC]
According to Jordan Belfort, a former boiler room operator who did 2.5 years for defrauding all of his Stratton Oakmont clients, 2014 is going to be a big year for convicted criminals who don’t appreciate being called convicted criminals. Read more »
The wireless broadband provider That could
Philip Falcone’s LightSquared Inc. will probably be able to borrow $1 billion to finance its exit from bankruptcy as a standalone company, Credit Suisse Securities LLC said in a letter made public Friday. The Credit Suisse Group AG (CSGN) unit said it was confident it could arrange the proposed bankruptcy-exit loan as long as LightSquared, a wireless broadband provider, met conditions including obtaining the “cooperation of all parties-at-interest” in the reorganization and “all required regulatory approvals.” Philip Falcone’s LightSquared Inc. will probably be able to borrow $1 billion to finance its exit from bankruptcy as a standalone company, Credit Suisse Securities LLC said. [Bloomberg]
Bitcoin has been tossed into the virtual gutter at the World Economic Forum in Davos this week, as top US financial leaders warned the vitrual currency could be used to fund terrorism and predicted that regulation would put it out of business. Jack Lew, US Treasury secretary, said: “From the government’s point of view, we have to make sure it does not become an avenue to funding illegal activities or to funding activities that have malign purposes like terrorist activities. High quality global journalism requires investment. “It is an anonymous form of transaction and it offers places for people to hide,” Mr Lew said in an interview with CNBC at Davos. Jamie Dimon, JPMorgan chairman and chief executive, told the same channel: “The question isn’t whether we accept it. The question is do we even participate with people who facilitate Bitcoin?” Ultimately, Mr Dimon said, Bitcoin would be subjected to the same regulatory standards as other payment systems and “that will probably be the end of them”. [FT]
Here’s Kent Engelke, explaining the math he used to come up with that prediction. Take the 7% of presidents who have been impeached or resigned, ignore the fact that 0% of impeached presidents have actually been removed from office, then add 3%, just for the hell of it.
“If ObamaCare is the fiasco that some headlines are suggesting it is, I place the odds around 10% the president will resign before next November’s election,” said Kent Engelke, managing director at the brokerage Capitol Securities Management. Engelke, who has more than 27 years of experience in the securities industry, says he got the 10% number from a simple calculation: 7% of all U.S. presidents faced impeachment or resignation (Presidents Andrew Johnson and Bill Clinton were impeached, while President Nixon resigned). He adds in another 3% due to the heightened animosity between president Obama and Republicans in congress.
And here’s Dick Bové, acting as the voice of reason on this one. Read more »
Bonus Watch ’13: Some Of You Are Going To Be Happy With The Number Your Boss Writes Down And Pushes Across The TableBy Bess Levin
Others, not so much. Read more »