Monthly Archives: May 2008

Extra Credit, Thursday Edition

Why H-P’s Stock Is Stuck: "Itßøßøs a well-run, slow growing giant of a company" The New Peak Oil: Peak Demand Chicago Overturns Foie Gras Ban Is "the X-word" Dead? First it was XFRML. Then it was XBRL. Now it’s ID, … Continue reading

Posted in remainders | Comments Off on Extra Credit, Thursday Edition

How Often Would You Like to be Paid?

If you’re poor, you’re generally acutely aware of exactly how much money you have at any given time, and that amount is generally very low. Andrew Goodman-Bacon and Leslie McGranahan have a paper out now on the Earned Income Tax … Continue reading

Posted in pay | Comments Off on How Often Would You Like to be Paid?

NYC Bike Datapoint of the Day

Joshua Benson, the bicycle program coordinator for the New York City Department of Transportation, mentions a startling statistic without even seeming to realise how startling it is: As the number of cyclists in New York City has grown (75 percent … Continue reading

Posted in cities | Comments Off on NYC Bike Datapoint of the Day

Pandit Spams his Customers

Logging on to my Citibank account this morning, I found this, which recapitulates an email I received a few days ago: The link takes you here, to a letter which simply begs for parsing. But before we get to the … Continue reading

Posted in Portfolio | Comments Off on Pandit Spams his Customers

Zimbabwe Datapoint of the Day

Ian Brakspear: During the meal, one of my mates was drinking beer – 750ml bottles of Castle Lager (fondly called bombers) he ordered a 5th one, was advised that the price, which when he ordered his 1st, 2nd 3rd and … Continue reading

Posted in emerging markets | Comments Off on Zimbabwe Datapoint of the Day

Leverage Datapoint of the Day

I’ve somehow managed to avoid so much as mentioning the Clear Channel saga on this blog until now; for some reason I just couldn’t get excited about it. But Heidi Moore gets a good quote in her summing up today … Continue reading

Posted in banking, private equity | Comments Off on Leverage Datapoint of the Day

How Unleaded Gasoline Slashed the Violent Crime Rate

The paper, from the NBER, is 70 pages long, but the conclusion, from Jessica Wolpaw Reyes, is simple, and stunning: The main result of the paper is that changes in childhood lead exposure are responsible for a 56% drop in … Continue reading

Posted in crime | 1 Comment

Art: The Last Unburst Bubble

Christie’s sale on Tuesday night was a stunning success, ratifying the ridiculous levels to which contemporary art has soared in recent years. The Sotheby’s sale on Wednesday night, by contrast, took the market to a whole new level. Not only … Continue reading

Posted in art | Comments Off on Art: The Last Unburst Bubble

The Beginning of the End of the Credit Crisis?

David Gaffen is watching the VIX decline to levels well off its March highs, and back towards its lowest point of the year to date. Meanwhile, Alea is watching financial-instution credit default swap spreads decline to levels well off their … Continue reading

Posted in bonds and loans | Comments Off on The Beginning of the End of the Credit Crisis?

Why Agricultural Subsidies Don’t Mean Lower Food Prices

Do agricultural subsidies lower food prices? When I looked at this question last month, I dismissed it as a second-order effect: they might, they might not, either way it’s not going to be a big deal when compared to the … Continue reading

Posted in food | Comments Off on Why Agricultural Subsidies Don’t Mean Lower Food Prices

Why Bank Debt Looks Attractive

Pimco’s investment professionals spent three days this month with the likes of Alan Greenspan, Nassim Taleb, and Mike Spence in something the bond manager calls its "Secular Forum". It fell to Mohamed El-Erian to sum it all up, and to … Continue reading

Posted in bonds and loans | Comments Off on Why Bank Debt Looks Attractive

Extra Credit, Wednesday Edition

The Discord in Similarity: John Thain is doing a better job than Vikram Pandit. Of Hedges, Hot Dish, and Hogwash: The Ben Stein Watch to end all Ben Stein Watches. Australian Bank Acquires Rival for $17.5 Billion: Apparently there’s a … Continue reading

Posted in remainders | Comments Off on Extra Credit, Wednesday Edition

Martin Sullivan Deathwatch

In terms of Jack Flack’s five levels of CEO media hell, AIG’s Martin Sullivan has now graduated from "on the ropes" to "dead man walking". The WSJ’s headline says it all: "AIG’s Chief Faces Worries Of Investors and Directors" – … Continue reading

Posted in defenestrations | Comments Off on Martin Sullivan Deathwatch

Overkill on the Profanity Desk

Dear NYT, What the fuck are you doing? The Gray Lady devotes 1,200 words and four reporters today to covering in mind-numbing detail the fact that a television anchor inadvertently said the word "fuck" live on air. (Of course, being … Continue reading

Posted in Media | Comments Off on Overkill on the Profanity Desk

IAC: Malone Concedes Defeat

Barry Diller, Condé Nast Portfolio cover star, has decisively prevailed in his fight with John Malone, the largest shareholder of the company Diller runs. Malone’s Liberty Media won’t appeal the court decision which went in Diller’s favor in March, has … Continue reading

Posted in Media | Comments Off on IAC: Malone Concedes Defeat

Contemporary Art: As Strong as Ever

Bursting art bubble? What bursting art bubble? The Christie’s sale last night looked for all the world as though it was taking place at the height of the party: not only did it bring in a very impressive $348 million, … Continue reading

Posted in art | Comments Off on Contemporary Art: As Strong as Ever

Extra Credit, Tuesday Edition

Libor Set for Overhaul as Credibility Is Doubted Investors Cool to HPQ-EDS Deal: "HPQ has lost more market cap over the past 24 hours than the total purchase price of EDS." AT&T price cut could juice iPhone sales: Or, for … Continue reading

Posted in remainders | Comments Off on Extra Credit, Tuesday Edition

Robert Rauschenberg is Dead

Go read Michael Kimmelman’s obituary, it’s one of the best things he’s written. Kicking around Europe and North Africa with the artist Cy Twombly for a few months after that, he began to collect and assemble objects — bits of … Continue reading

Posted in art | Comments Off on Robert Rauschenberg is Dead

Bernanke on Bagehot

I doubt a week has gone by since last summer during which I haven’t seen some pundit or other trot out Walter Bagehot’s dictum that in the event of a credit crunch, the central bank should lend freely at a … Continue reading

Posted in fiscal and monetary policy | Comments Off on Bernanke on Bagehot

Bernanke: “Powerful and Inventive”

Is there some kind of law saying that any long magazine profile of Ben Bernanke must mention Milton Friedman in the opening sentence and the Great Depression in the opening paragraph? First Roger Lowenstein did it, and now Steve Matthews … Continue reading

Posted in fiscal and monetary policy | Comments Off on Bernanke: “Powerful and Inventive”

Prediction Markets: A Probability is not a Certainty

Mark Gongloff has a rather silly attack on prediction markets today. Let’s start at the beginning: John McCain’s presidential campaign is doomed — at least, if you still believe what political futures markets indicate. At the Irish electronic exchange Intrade, … Continue reading

Posted in prediction markets | Comments Off on Prediction Markets: A Probability is not a Certainty

Let Them Eat Bear

Now that’s what I call a power lunch: Federal Reserve Chairman Ben S. Bernanke lunched on March 11 with a Who’s Who of Wall Street leaders, including JPMorgan Chase & Co.’s Jamie Dimon, three days before the central bank rescued … Continue reading

Posted in banking, fiscal and monetary policy, regulation | Comments Off on Let Them Eat Bear

How to Burst the Rice Bubble

Tom Slayton and Peter Timmer have an excellent brief out on which does much more than just explain why rice is so expensive right now: it also comes up with an elegant way of bringing the price down quite dramatically … Continue reading

Posted in commodities | Comments Off on How to Burst the Rice Bubble

How to Curb CEO Pay

John Cassidy has got me thinking on executive pay. Cassidy is angry at the sums paid to CEOs, and he’s urging us all to "go ahead and get mad" in an attempt to curb the worst excesses. It’s not the … Continue reading

Posted in pay | Comments Off on How to Curb CEO Pay

Was the Hamptons Property Bubble Speculative?

Richard Florida thinks the Hamptons property market is about to crash: It’s clear as a bell that the tremendous run-up in housing prices in places like the Hamptons, Miami, Naples, Florida, or other similar high-end vacation spots had little to … Continue reading

Posted in housing | Comments Off on Was the Hamptons Property Bubble Speculative?