David Einhorn, Greenlight Capital: “Cranberry sauce — not from the can, just cranberries and sugar.” Julian Robertson, Tiger Management: “Wild rice.” Gary Cohn, Goldman Sachs: “Oysters — not shucked by me.” Glenn Dubin, Highbridge Capital Management: “I love turkey. I would love to eat turkey all year round, because I’m a chicken person.” David Hasselhoff, actor: “I miss the dish my mother used to make: it was green beans, with a layer of marshmallows, and corn flakes on top.” [Bloomberg via LaurenTaraLaCapra, RELATED]
Bloomberg: This Is What Wall Street, And One Former Baywatch Star, Will Be Feasting On Come ThursdayBy Bess Levin
My dear friend and former colleague John Carney will be joining CNBC.com as a “senior editor” in the coming weeks and will also be “appearing regularly on CNBC’s Business Day programming.” Over the last few years John has been on the network as guest commentator but now that he’s an official member of the team, one very important thing needs to happen. It goes without saying but here it is: a nickname. Maria’s got one, Erin’s got one, Phil LeBeau’s got one and now Carney needs one too. If he’s gonna do this, he’s gotta do this right. I know what my pick is but let’s get democratic about this. Serious suggestions only, please.
Rice Student Thinks Jefferies Is “More Courteous” Than Its Counterparts And Has “The Best Corporate Culture In Town”By Bess Levin
And she’s sorry she missed her interview with the rainmakers and hopes they’ll be able to find it in their hearts to forgive her. Because they’re not like those other banks. They’re different.
From: [redacted at Rice]
Sent: Thursday, February 04, 2010 9:22 AM
To: [redacted at Jefferies]
To Whom It May Concern:
I would like to sincerely apologize for not attending the interview I had scheduled with Jefferies & Company on Rice campus. I would also like to thank you for informing the CSPD, so as to keep me accountable for my selfish and careless actions. While I cannot take back time and no excuse suffices to rectify this great wronging, I would like to offer a brief explanation of my lack of attendance in hope that you will forgive me.
The streets of Chiang Mai, Thailand’s second city located near the northern end of the country, are nearly empty during summer middays. Most people you encounter will be tourists, backpackers and the drivers of tuk-tuks, the three-wheeled taxis that are everywhere in South East Asia. Thais know that the midday sun–or heated haze–is to be avoided.
So where are all the Thais? A great many are at home, safely shaded and cooled by those slow-motion fans that cool residents of South East Asia but provide no relief to visitors. But those Thais who need to get out of the house–especially those with some extra disposable income–head to the mall.
Recent visits to a few of the malls in Chiang Mai suggests that hotter days drive up mall visits. It’s been unseasonably warm in the last few weeks, and business is booming. If you want to profit from fear of imminent environmental doom, the mall is where to do it in Thailand.
I’m officially on vacation here in Thailand, so I haven’t bothered to find out who owns the malls or the bigger Thai stores. But I did notice a few American companies with Thai mall exposure: Dairy Queen, Pizza Hut and Duncan Donuts.
So the next time you hear about the “inconvenient question” you’ll have a convenience store answer: Long the DQ Blizzard!
–John Carney is trying to find ways stay cool in Thailand.
Recently laid off from your buldge bracket bank because the buyout business has dried up? Well Bangkok may be where you want to be. Beside the obvious benefits–cheap domestic help and bespoke clothing–the land of smiles may be poised for an M&A boom.
Firms here cannot use tax losses on the books of acquired companies to offset profits of the combined entity. But that may be changing thanks to a newly announced government plan to boost investment.
The tax laws now in place discourage deal making because mergers erase value by eliminating carried tax losses. The change couild unleash value now trapped inside firms, making deals much more attractive. Firms with tax losses on the books will suddenly have a valuable asset.
This is probably somehow related to rice or Buddhism but I’ve probably said enough on that for now.
–John Carney is “on assignment” in Thailand.
There’s a deep irony to all the talk about the global food crunch (they laugh at our “credit crunch” here, you can’t eat credit) portending dark deeds in Thailand. This country is hardly in danger of running out of rice, short term or long term. In fact, it supplies the international market with 30% of its rice. This eclipses many countries, such as China, that produce far more rice but have limited exposure to global markets due to export curbs. Thailand, despite the dire talk of rice price hikes, probably stands to reap huge profits from the Food Crunch.
What’s more, Thailand could produce even more rice than it does. Large parts of its rice fields are underproductive, in part because they are not properly irrigated. Many fields that could produce multiple crops a year produce just one or two. Price controls and other government mucking about contribute to the low-productivity. But, if I were asked, I’d probably say an even bigger role is played by the heat here. It’s really, really hot in the summer. And it’s summer right now. It takes a lot of baht to motivate Thai farmers to work in the summ er. Leisure in this kind of weather is a highly prized commodity. But if prices get high enough, the farmers will dismount from the hammocks and get to planting.
So if Thailand has plenty of rice and could produce more if the price was right, what’s all the fuss about? To understand the issue, you have to realize that in this part of the world rice quite literally has a religious dimension. In the mornings you can find women on the streets given rice to monks to “make merit”–which is Buddhist for scoring religious points. At images of the Buddha throughout Thailand, people leave offerings of rice. High prices are seen as interfering with the religious obligations of the people. Keeping rice prices low is a way of staying right with Buddha.
It’s also pretty much part of every meal. So imagine, if you will, if $117 oil meant we had to cancel Sunday church services and Saturday bbqs. Rice, in Thailand, is food plus religion. And when it gets expensive, dangerous forces can be unleashed.
–John Carney is probably eating too much rice on his vacation in Thailand.
Thailand may have spent the Cold War on the free market side of the Bamboo Curtain but rice socialism still reigns. Price shocks have politicians scrambling to raise rice productivity through irrigation projects, while consumers are now facing new purchasing limits on rice at markets.
Consumers are limited to buying just three bags of rice at the markets. It’s a form of demand side price control made necessary by the supply side price controls exercised by the government. Rice is only allowed to be sold to consumers within certain price bans, which would lead to shortages if market processes were allowed to work themselves out. To avoid market created shortages, the government has decided to preemptively create its own shortages by limiting purchases by consumers.
The next move may be for the Commerce Ministry to release its Strategic Rice Reserves. No really. The government hordes rice in case of shortages here, the way the US government hordes oil. But this possibility may actually lead to further shortages in the long run, as rice farmers may plant fewer crops for fear of downward price pressure from government reserves being released.
All of this is feeding into rumors of a possible military coup. Some say that Thaksin Shinawatra, the populist politician who was ousted in the last coup, may be preparing to come back the same way he was forced out: through a military backed overthrow of the government. He’s popular with the monks and the have-nots of Thailand, and has been spending time in temples across the country. Supposedly this temple tour is to atone–or make merit–for past sins. Thaksin insists that it only looks very much like a political campaign.
The rumors of a Thaksin coup have sparked rumors that his opponents could stage a pre-emptive coup to establish their own version of military rule before Thaksin can build his. No one expects Thailand to become another Burma, but talk of competing coups has many saying it is only a question of who does it first.
– John Carney, who is vacationing in South East Asia, has never stage a coup, military or otherwise.