THE FINTAG NEWSLETTER
@ Wed 04 February 2009 : GMT

FINTAG COMMENT

Buy British.

So what is wrong about that? Imagine a world where a country had no real manufacturing or service based industry, had falling gdp and all its citizens bought stuff from other countries apart from its own? It wouldn't last long. The country would have escalating unemployment, falling tax revenues and anarchy. So buying British in this politically correct world is the only way forward. Globalization has failed and liberalism is dead. Today, it is survival of the fittest and unless the UK starts kicking ass it will be a has been. It was so much easier when it had an empire.

International trade has been the corner stone of laissez faire economics. It has also been used to avoid conflict and war. The free movement of capital and labor is good for us all. Countries that can produce stuff cheaper than others are rewarded and we all benefit from child exploitation and stuff we don't need. Competition bites hard and instead of us driving around for years on end in Trabants, we get new car models produced monthly. Consumer choice, happiness and contentment.

Politicians use international trade as lever to keep countries on the straight and narrow. Take Zimbabwe. Economic sanctions work because the country is not self sufficient. And this is where protectionism comes into its own. If you have no friends you grab land and resources from your enemies. China, Russia and the USA have the ability to go it alone. But not quite. China rapes Australia for its commodities, Russia rapes the UK for its culture and the USA rapes Iraq for the oil. It is part of the game until unemployment and social unrest take their toil when rape then becomes ownership.

In the 1930s, international trade was sporadic and Germany suffered at the hands of those still annoyed at World War 1. As deprivation and anger seeped into the psyche of the Germans, the depressed world enjoyed a massive fillip from World War 2 as it did during the space race.

Protectionism breeds paranoia but this is where we are headed and Obama is the one to start it. Is his honeymoon period over? I think it is. How embarrassing it looks now at the hoards of people lined up to wave at the Blackberry Man, the savior of the world? His descent is more rapid than even I could imagine. Carter. Ford. Nixon. Obama.

Yesterday I was French. I was berated for not being Italian so today I shall join the land of cool and corruption. Being French enabled me to be more arrogant than usual; my eyes sought out attractive women; my nose the garlic Bordeaux brie combinations and my ears the worst pop music ever made. Today I am wearing very cool clothes, calling my mother every 10 minutes and telling everyone I am not gay. Makes a change from being British although I may well return back to my roots when the ice and snow dissipate.

International trade is a leveller. It aims to make everyone equal and pushes a model of democracy into those countries who don't want it. But when your people are starving and restless, politicians need all the help they can get and caring for those abroad is the last thing on their minds. Discrimination is part of survival and although this may seem wrong, it is a matter of fact. We revert to animal instincts.

So Obama is right to want to protect the national interests of the USA. It will detract the Americans from the mess he is making trying to form a government and his civil servant salary caps. Shame us liberal Brits are sitting on the sidelines but it won't be long before wearing union jack pants will be seen as a good thing once more.

Today we love oil, gold and armani. Things going to the thrift shop include bad banks, tax evaders and fintag mansions.

Snow Alert
There are so many cute photos of dogs and children playing in the snow in London. So here is a picture of a dead snowman.



And for those of you looking for some zombie magic, here is a station popular with French and Italians. But as you can see, they have decided to work European hours.

FED CAPITULATES: EXTENDS ALL EXISTING LIQUIDITY PROGRAMS AND SWAPS

aleaFintag says
Oh dear. Just like the ban on short selling, sometimes plans go awry. So it thinks the bottom of the market will be 1 November 2009? We shall see.

bloomberg says "British Economy Will Shrink Until Fourth Quarter, Niesr Says "

OBAMA WANTS TO AVOID 'TRADE WAR'

bbcFintag says
Too late. The man has started it already by saying he doesn't want to start one.

OBAMA TO LIMIT EXECUTIVE PAY AT COMPANIES GETTING AID

bloombergFintag says
Thankfully a few CEO's saw this coming and lined their pockets early. So investment banking is no longer the cash cow it once was. The shareholders will be delighted - when they start making profits again and paying out fat dividends. Time to go long banks ...but what about those banks not nationalised? They will end up with all the good staff. Funny how distorting the market produces unwelcome outcomes. So in fact with less banks, the bonuses will get even larger.

Given most of Obama's team are people who follow the Leona Helmsley school of tax policy ...sorry I lost the point.

OCH-ZIFF'S FUNDS ROSE IN JANUARY

dealbookFintag says
My favourite hedge fund is surviving; I must got to Carluccios in Fenwicks to celebrate.

MADOFF WHISTLEBLOWER BLASTS 'NONFUNCTIONAL' SEC

finalternativesFintag says
The poor ol' SEC. It is the whipping boy and well deserved. So when is Obama going to dismantle it or rename it something like the CDLL (Collect Data and Litigate Later)?

DARLING REVIVES OPTION OF 'BAD BANK'

financial timesFintag says
Another American idea "adopted" by the useless UK government. More of my taxes to be used to pay for the bonuses past of inept Scottish CEO's.

naked capitalism says " The Bad Bank Assets Proposal: Even Worse Than You Imagined "

independent says " Lenders borrowed GBP185bn from BoE scheme"

STOCK MARKET IS BOTTOMING, EQUITIES VS GOLD BULLION

safehavenFintag says
We all love bottoms. Especially us Italians [Editor: Steady]

COHEN'S HEDGE FUND TAXES CAN'T FIX CONNECTICUT'S FALLEN REVENUE

bloombergFintag says
See. Us hedgies are vital to the proper workings of an economy. So where is our "bad hedge fund"?

FLORIDA JUDGE ORDERS ARTHUR NADEL TO FACE SEC CHARGES IN NEW YORK

hedgeweekFintag says
Pizzo - a good old fashioned Italian name.

LTCM FOUNDER PLANS NEW HEDGE FUND

finalternativesFintag says
Everything this man touches turns to ash and yet investors love giving him money. This will be his 4th time I believe.