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Richard Sachs Cycles

A letter to GM bondholders

My dearest Motors Liquidation Company (formerly General Motors Corporation) bondholders, just because General Motors Company (the “new” GM) went public today, you will not immediately be receiving any new GM shares in exchange for your bonds. Your bonds are not from the new GM … they are from a previous company which is still in [...]

The Truth about Obamacare

As the mid-term elections season primaries pass, and the actual November elections approach, political rhetoric is flying fast and heavy … and it seems that the biggest itch getting people’s panties into a twist is the healthcare bill passed by Congress earlier this year, and signed into law by President Obama.

People are upset about [...]

Illiquid incentives …

Bankers Win Big in Toxic Pay Plan – WSJ.com

Credit Suisse Group’s novel plan to pay bankers with a brew of its own toxic bonds and corporate loans has gotten off to an unexpectedly strong start, which could put further political pressure on other Wall Street firms to change how they pay their employees.

Late [...]

Short sale ban may not work

In news that’s sure to make A-Train happy; or at least allow him to say “I told you so”:

SSRN-Shackling Short Sellers: The 2008 Shorting Ban by Ekkehart Boehmer, Charles Jones, Xiaoyan Zhang

In September 2008, the U.S. Securities and Exchange Commission (SEC) surprised the investment community by adopting an emergency order that temporarily banned [...]

Lance Armstrong Ponders Buying the Tour de France

Yeah … this one isn’t an April Fool’s joke … from the Wall Street Journal, March 27, 2009.

Lance Armstrong Ponders Buying the Tour de France in Bid to Run Pro Cycling – WSJ.com

Lance’s Plan for France — Off the Bike Seeking to Overhaul Cycling, Armstrong Played a Part in Talks to Buy the [...]

I got nothing …

… nothing in the news I really want to comment about; no new music to share … I can’t even think of anything personal to share that’s worth writing about.

For me, that’s not generally a good thing; it often is an indication I’m entering an emotional trough, that I’m about to have a [...]

A Tale of Two Banks

BofA’s Mantra: We’re Not Citigroup – WSJ.com

Bank of America Corp. [NYSE: BAC] Chief Executive Kenneth Lewis is eager to prove one thing above all else: His company isn’t Citigroup Inc. [NYSE: C]

As shares of big banks have fallen in the face of speculation that they might be nationalized by the government, Mr. Lewis [...]

‘Bad Bank’ Funding

‘Bad Bank’ Funding Plan Starts to Get Fleshed Out – WSJ.com

WASHINGTON — The Obama administration, filling in some of the blanks in its bank bailout, is considering creating multiple investment funds to purchase the bad loans and other distressed assets that lie at the heart of the financial crisis, according to people familiar with [...]

Apparel for short, chubby skiers?

Why is it that ski apparel manufacturers seem to think that people fit one particular body type? Seems like all the ski apparel manufacturers think that if you have a 37″ waist, you also have a 35″ inseam … I’m 5’9″, not 6’3″. And if not that, then the manufacturers think that the wearers are [...]

I prefer pancetta to panaceas …

Looks like Paulson has taken at least one stance with which the A-Train shouldn’t have too many problems (if any), and while in many ways I disagree with the Train about how to fix the problem, in this particular situation I think we’re probably both on the same page.

Bloomberg.com: Paulson Warns TARP Isn’t ‘Panacea’ [...]