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Opening Bell: 5.30.07

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Editor's Note: As Keith Hahn mentioned yesterday, Joe is off all week. Even DealBreakers need vacations. So the rest of the team is filling in for him as best we can.
Goldman's Global Alpha Hedge Fund Falls 3.4% Since Start of '07 (Bloomberg) Frankly, we think the "under-performance" of Goldman's Alpha fund is something of a non-issue. Yes, it is down close to three and a half percent for the first quarter of this year while some hedge fund average is up 4.9 percent. And, sure, it hasn't quite lived up to the "Goldman prints money in its basement" reputation that the fund got after returning 40% in 2005. But Alpha isn't meant to be anyone's primary investment vehicle. It's supposed to operate as a true hedge fund, offering uncorrelated returns. This means that some years will not be boom years. If anything, diverging from the performance of a hedge fund average that someone has cooked up simply means that Alpha isn't playing the same game of shorting volatility that so many so-called hedge funds are playing.
The World Bank and the Goldman Connection {DealBook) Basically, Goldman Sachs just bought the World Bank. Okay. That's not quite right. But it does sometime feel like Goldman is running the world. And this morning it just feels a bit more like that. Now they have the NYSE, the Treasury, the World Bank and have done their best to own China too.
ABN Bid: Sweet and Sour (Wall Street Journal) When ABN Amro agreed to sell it's LaSalle division to Bank of America, a lot of people assumed it was part of an attempt to muck-up the takeover bid from the group led by the Royal Bank of Scotland. Well, if that was the plan, it seems to be working. Yesterday the RBS group said the final price paid to ABN Amro shareholder may end being lower because of the cost of litigating the lawsuit that has resulted from their attempt to unwind that deal.
Debt risks grow in private equity boom (Reuters) As it turns out, leveraged finance involves lots of leverage.
My Recommended Federal Reserve Policy ( Gary North proposes a provocative policy for the Fed: stop doing anything. More particularly, stop buying or selling assets in an attempt to create a smoothly rotating economy with exactly the right rate of growth, price movements and interest rates. His main point is basically that we wouldn't tolerate a bureaucratic exercise to fix the price of anything else, so we should stop putting up with government meddling in interest rates.
Eurotunnel shares double for second day in a row (Reuters) We never really got the Chunnel. The ferry ride across the English Channel was one of the most pleasant international trips imaginable. You sat down with a bottle of something crisp on a fast boat that whisked you across a beautiful seaway as the Dover Cliffs faded into the background. If you were a literary or historical type you might remember some poem about Dunkirk. Now you cram into a commuter railway that shoves you through an underwater tunnel. Oh yeah, it seems that shares in the company that runs this bad experience are up because someone has figured out a way to let it pay off some of its massive debt load. Hurrah!