Archive for December, 2008

One More Reason Chapter 11 Is The Right Solution

Bloomberg has a story about GM and Chrysler grappling with how to trim their dealer network. It has to be done but it isn’t easy as state franchise laws protect the dealers. Restructuring the network of independent retailers is more difficult than negotiating with bondholders or the United Auto Workers union, which can bargain as […]

Manipulating Bank Financial Statements

The post below this one spotlights a guy who is calling bank stocks a good buy. This post might convince you to never buy a single share of a bank ever again. We are going to be dealing with a couple acronyms so let’s get them out of the way upfront. The first is IASB […]

One Analyst Thinks Banks Are A Steal

I don’t know if this guy is smoking something illegal or if he has insights that everyone else has missed, but he deserves a hearing on guts alone. Richard Bove, a bank analyst thinks bank stocks are an excellent value and that the negative assumptions about the U.S. economy may be excessive. Mr. Bove sees […]

The Journal’s Take On The Death Of Wall Street

As much as I detest instant history and the recent spate of articles recounting the events of the last few months, I have to admit that the WSJ’s article this evening on the death of Wall Street is a pretty good read. For the U.S. securities industry to unravel as spectacularly as it did in […]

Playing With Fire

A bad recession in the early 1930’s turned into the Great Depression largely because politicians did what they are wont to do. Legislate badly. We may be staring down the barrel of that gun once more. A short article in the New York Times this evening which deserves to be much longer points out that […]

GMAC Is Silent On Its Bond-Exchange

Strangely, GMAC is not saying a word about the success or failure of its bond-exchange program. The offer to exchange debt for equity expired Friday night but the company has yet to say if it succeeded or failed. The offer is crucial to GMAC’s transformation into a bank holding company and thus access to TARP […]

Now The Commercial Real Estate Guys Want A Bailout ll

You have to keep an eye on the commercial real estate guys. A week or so ago I wrote a post that drew on a WSJ report that the commercial real estate industry was trying to get in on the bailout gravy train. Now the New York Times has followed up with another article that […]