28JAN09:
Q1-09 DOW: 8900
Q2-09 DOW: 7250
Q3-09 DOW: 5810
Q4-09 DOW: 3960
CITI NATIONALIZED
OBAMA GETS SICK 27AUG09:
Mini Crash 21SEP09 Predicted correctly:
Bailout=Bonuses
Demise of Bear Stearns
Demise of Lehman Bros.
Demise of AIG
Subprime would cause problems
Date of 2007 crash
CRAs were to blame
G20 riots were a party
Northern Rock run
Northern Rock Nationalization
HBOS and RBS demise
UBS really was Useless
Yes they have landed. The first thing they do is read the news. I know this because I watched an episode of Star trek in Hi-def (HD to the rest of us) and the alien, Abraham Lincoln, asked lots of questions. If he had asked Kirk for internet access, he would have got a better feeling of what us earthlings are all about. Not much.
I suddenly realised I review the same batch of news sources everyday. This is because my delicious bookmarks are static. So this must change.
Today I look at why s.xy women work in taxation and whether Fiat will export its rust to Chrysler cars?
Will my employees be eating at the Square today and is the UK a victim or a bully?
Is the IMF for real and do women in tax make for better lovers?
Pension administrators will have to disclose all fees in 401(k) accounts, under legislation introduced in the House of Representatives yesterday.
The 401(k) Fair Disclosure for Retirement Security Act of 2009 aims to protect the worker by requiring the transparency and disclosure of fees to the employers and employees within the 401(k) system.
Representatives from Hewitt Associates present at the hearing argued the need for much greater transparency in the disclosure of 401(k) fees by service providers to plan fiduciaries and participants.
Fintag says Transparency. Now that is gonna hurt when the fees are disclosed. I guess some of these will make us hedgies look like we are angels. Which we are.
WORLD'S PENSIONS HUGGING TREES IN QUEST FOR PORTFOLIO DIVERSIFICATION
But it gets better. As trees grow, they are able to produce larger boards. So the revenue per volume of wood goes up. In other words tree growth has an exponential effect on value. In addition, a growing population has put steady upward pressure on wood products over the past century. Other returns can come from selling off hunting and recreational rights as well as conservation easements.
Conspicuously absent from this list is the market price of the wood itself. Proponents of timber investing argue that the actual price of the wood is irrelevant since you can just sell the timber when prices are high.
Fintag says Timber. Its green and the returns are good. Vol is okay and its the next flavor of the year. I am in.
The U.S. Securities and Exchange Commission has fined Hennessee Group $814,000 in a settlement for advising clients to invest in Bayou hedge funds which turned out to be fraudulent, The Financial Times reports. Around 40 Hennessee clients invested “millions of dollars” in the Bayou hedge funds from February 2003 through August 2005.
Fintag says That fine is rather pathetic really. Did HG really know that Bayou was run by a lunatic?
BORROWING PUTS UK'S AAA RATING IN DANGER AFTER BUDGET 2009
The prospect of the UK losing its AAA sovereign credit rating, resulting in higher interest rates for companies and households, moved a step closer after ratings agencies voiced fears about the UK's vast public debt burden.
Moody's and Standard & Poor's are reviewing the UK's rating in light of the Chancellor's revelation in the Budget that national debt will reach £1.4 trillion over the next five years. Spain, Ireland, Greece and Portugal have already been downgraded.
Arnaud Mares, lead analyst at Moody's for the UK, said: "Treasury projections that public sector net borrowing will remain above 5pc of GDP five years from now... are a cause for concern. This suggests that fiscal policy will have to be tightened much further than currently envisaged. The alternative would be that the Government chooses to live with a permanently higher debt burden which would likely have rating implications over time."
Fintag says It was going to happen. The CRA's, as useless as they are at rating structured products, do, I think, a good job at rating the political risks of countries. If the UK goes the route of Iceland, then I shall refuse to pay myself any remuneration and force the state to look after me. My needs are simple. Luncheon vouchers, a weekly trip to that Thai massage place off the Square and a Blackberry.
I have decided I pay too much tax anyway so if I choose not to earn anything, there is no tax. Thankfully my "offshore" sleeping partner is doing an excellent job at the moment and is hoovering up all my partnerships drawings. The independent Trustee (an old school friend) will look after there drawings and probably pay me an interest free loan that I will forget to pay back.
See. Avoiding tax is quite easy really. That is why only the "little people pay tax". [Editor: HMRC will be paying a visit today ...]
Kings Fund Chief Executive Niall Dickson commented yesterday that the 2009 Budget must be a 'wake up call for the NHS', forcing it to improve efficiency before spending cuts of £2.3 billion are introduced in 2011. But as a consequence of Darling's announcement yesterday, NHS Hospital Trusts are expected to reduce the length of patient stays in hospitals after operations in order to cut costs, and the Department of Health's (DoH) will also claw back savings by cutting the NHS tariff, the price paid to Trusts for each clinical procedure carried out. This will mean hospitals undertake the same number of operations at a lower cost, or potentially, perform fewer operations. Neither cost cutting measure constitutes an 'efficiency', however broadly one defines the word.
Fintag says Talking of tax, this website full of hacks talking about tax perplexes me. When I think of taxation, I think of dull ugly people. I am sorry if that offends but I just do. However, this myth has been dispelled completely because the female hacks on tax payers alliance are very attractive (unlike the men who are as you would expect).
Katherine looks cheeky, Maria looks like she can handle her cocktails and Susie, well that half opened blouse and knowing smile ... [Editor: Stop]
The Treasury Department is directing Chrysler to prepare a Chapter 11 bankruptcy filing as soon as next week, people with direct knowledge of the talks said Thursday.
The company faces a deadline of April 30 to come up with a viable business plan supported by its creditors, the United Automobile Workers union, and Fiat, the Italian car company that wants to acquire a stake in Chrysler.
Fintag says So the US taxpayers has pumped billions in and all for nothing. Bye bye Chrysler and please don't let Fiat buy you.
The hedge fund and private equity industries attacked a draft European Commission directive designed to regulate their activities and due to be published next week.
Trade associations representing both sectors on Thursday characterised the draft as a rush job heavily influenced by politicians seeking to score short-term electoral points.
Fintag says Whatever. We know the loopholes.
EUROPEAN PENSION FUNDS INCREASE WEIGHTINGS IN ALTERNATIVES
European pension schemes are increasing their allocation to non-traditional asset classes to manage their risks more effectively, according to Mercer's annual European asset allocation survey.
The survey of over 1,000 European pension funds with assets of €400 billion found that 35% of UK schemes and 60% of European schemes (excluding the UK) expect to introduce new investment opportunities into their portfolio to help manage future investment risk.
Fintag says Weighing up isn't the same as subscribing.
Waning confidence in the Chancellor's Budget growth forecasts sent gilts sliding yesterday, with prices touching their lowest levels since the Bank of England unveiled its quantitative easing programme in early March.
The yield, which rises as the price of a bond falls, on the benchmark 10-year gilt climbed to 3.51 per cent last night, up from 3.31 per cent on Tuesday and the highest since the Bank announced it would begin buying gilts and corporate bonds to increase the money supply and boost the economy.
The rise in gilt yields will worry the Treasury, with Alistair Darling's Budget revealing plans to sell a record amount of government bonds in order to finance his borrowing requirements. Any suggestion from the markets that the Government may find it difficult to find buyers for £220bn of new gilts would come as a huge blow.
Fintag says As I was saying yesterday, who wants to own UK debt?
Alistair Darling was warned on Thursday his new 50p income tax rate would drive talent from the City and discourage entrepreneurs, but early polls suggest that the chancellor's Budget tax rises have tapped into rising popular hostility towards the rich.
Mr Darling's tax raid on higher earners was widely criticised in the press as a populist gesture to divert attention from spiralling government borrowing and a political tactic to wrongfoot the Conservatives.
Fintag says As I said, those in the know will defer their tax payments. If its now a temporary measure then why not take next years salary now and earn nothing next tax year? Playing around with tax is fraught with danger. I have decided Susie will be my new tax adviser - she can show me how to shelter my assets ... [Editor: Stop it!]
DEMAND FOR HEDGE FUND SEPARATE ACCOUNTS 'A KNEE-JERK REACTION'
Hedge fund investors' growing demands for separate accounts may be an overreaction to increasing redemptions and fraud, participants said at an industry conference in Hong Kong this week.
Investors are demanding accounts that allow them to tailor investments, see trades and get out when they want, instead of the traditional way of pooling their money in a fund, as managers try to curb redemptions and after U.S. financier Bernard Madoff's conviction for running a Ponzi scheme.
Fintag says Investors rule OK.
OVER A THIRD OF CITY WORKERS WOULD STEAL FROM EMPLOYERS
A survey by Infosecurity Europe of office workers in London's financial district has found that over a third (37%) would steal company information from their employer if the price was right.
City workers were still fairly scrupulous, though, with around two thirds saying that they would never download and hand over sensitive information.
Fintag says I steal from my own company everyday. I mean expensing lunches at Nobu and the Square isn'y exactly right is it? So from today it will be Eat, Pret and Subway.
GIVEN ITS SHOWING, SHOULDN'T THE IMF JUST PIPE DOWN?
Critics are already irked by its G20 coup, when it secured powers to create £250bn in liquidity through Special Drawing Rights - its own quasi-currency.
Jurgen Stark, Germany's man on the European Central Bank, called it "helicopter money" for the globe. "There hasn't been a study to see whether the world needs additional liquidity. In the old days, one would take a long time to explore such a thing."
Fintag says The IMF has a bad track record. It makes the CRA's look competent. It is run by the US to intimidate countries. But that is dull. Here is some fun:
First but dozed off at the finish line so also disqualified !!!!!
24 Apr 09 - 07:42 gmt
anonymous said ...
Haha - Desperately Unfunny Moron strikes again. You shjould have been a stand-up comedian. First, brilliant and wacky faces with lots of chins :))))))) followed swiftly by the side-splitting "dribble dribble", which was then surpassed with the comedy genius of "grrrr!"
24 Apr 09 - 08:05 gmt
anonymous said ...
And now - how did you think of such a brilliant line - a cockroach squashing sound "ckkkk". I am dying with laughter, and appreciate the way you say each line 100 - 200 times so us less-funny humans get it. Thanks!
Tool.
24 Apr 09 - 08:05 gmt
Top Cat said ...
Fin, I've rumbled you. That episode of Star Trek was on SKY on Wednesday. You're like me aren't you...in an office on your own, watching TV all day!
24 Apr 09 - 08:09 gmt
tax my neighbour said ...
on the topic of deferring comp, I have a question.
Let's say you will be paid $X in june 2011 as part of deferred comp structure. Will this deferred comp be taxed at the current rate of taxation (50% in 2011) or will taxes be levied using the taxation level at the time of the deferring event (ie. 40%)?
24 Apr 09 - 08:14 gmt
tax my neighbour said ...
If it's the first answer, then Darling is screwing everyone with deferred comp that will be cashed in after april 2011.
Also, I don't think deferring your comp in the hope of lower taxation rates would be the solution. For taxation, the only way is up. What is taxed at 50% tomorrow will be taxed even higher the day after. Tending towards 70%+ taxes soon.
any view
24 Apr 09 - 08:15 gmt
potato guy said ...
yep, forward taxation will screw everyone's dreams of riches, tending towards total screwedness, 100% preemption, get your cash now if you can and start running, they are coming after you, and they will not stop until it's over
so much for cool britannia, welcome dark britannia
24 Apr 09 - 08:33 gmt
Moron said ...
ckkkkkk:))))
24 Apr 09 - 08:38 gmt
Moron said ...
i have hereby come to the conclusion that the only purpose in life is to be miserable.....so might as well be rich and miserable....at least its exciting!!!
24 Apr 09 - 09:32 gmt
anonymous said ...
Good one tool
24 Apr 09 - 10:12 gmt
Moron said ...
better a tool than a fool.....the difference between a tool and a fool is a f and a t...bcos we live in financial times:))))
24 Apr 09 - 10:23 gmt
Tradebot said ...
tax my neighbour is right... this is just the beginning, the tax rates will go up and the thresholds will go down. Only Boy George and his Bullingdon club mates can save us!
24 Apr 09 - 10:37 gmt
anonymous said ...
even MsR hates moron now
24 Apr 09 - 12:08 gmt
Susie said ...
@tax my neighbour - sadly it will be the former, ie 50%. This is because you are deemed to have earned the deferred comp at the time that it vests (June 2011), which is why you weren't taxed when it was originally granted.
24 Apr 09 - 13:05 gmt
Moron said ...
dont worry....even Moron hates Moron...!!!...only the cockroaches survive....
24 Apr 09 - 13:28 gmt
anonymous said ...
ftse up? well of course it is the sun in shining!
24 Apr 09 - 13:34 gmt
Moron said ...
all gonna end in tears....suckers getting sucked into suckers rally!!!
24 Apr 09 - 13:45 gmt
tax my neighbour said ...
Susie, thank you, time to pack.
24 Apr 09 - 13:53 gmt
13:45 said ...
i've lost so much money in this rally! when is it going to end - i'm close to tears.
24 Apr 09 - 13:57 gmt
Gadfly said ...
Perhaps you should all try and take a longer term view?
24 Apr 09 - 14:04 gmt
anonymous said ...
h t t p://en.wikipedia.org/wiki/The_Savage_Curtain
24 Apr 09 - 14:05 gmt
msR said ...
@anon 12.08 Moron's belittling of people who don't earn six figure sums yesterday did finally strike him off my Christmas card list.
24 Apr 09 - 14:12 gmt
Moron said ...
women....so easily manipulated...and six figs isn't exactly much...that was the whole point yesterday:))))
24 Apr 09 - 14:17 gmt
MsR said ...
@moron, It's fine to say that it's not that much and I have no problem with that just as I have no problem with people earning millions...but to belittle the people who don't earn what you do is not on Moron. I think manipulation is the wrong word.
24 Apr 09 - 14:19 gmt
Moron said ...
fair point...can't argue with that
24 Apr 09 - 14:25 gmt
anonymous said ...
Couldn't agree more Ms R...Moron has shown yet another irritating side of himself. The sooner he leaves this blog for people to comment on what Fin has written and markets, the better!
24 Apr 09 - 14:32 gmt
Jim Cramer said ...
We shud have a poll.....kick Moron out or not.....will be great fun......ckkkkk:))))........but then he can always reappear as Jim Cramer.....some cockroaches never die!
24 Apr 09 - 15:52 gmt
anonymous said ...
f*uck off you attention seeking child.
24 Apr 09 - 16:01 gmt
damiendamien said ...
Calm down dear, its only a blog
24 Apr 09 - 17:14 gmt
Jim Cramer said ...
:))))
24 Apr 09 - 17:19 gmt
Moron said ...
Hey Jim.....is the market going up or down from here....bitter anon is getting toasted......
24 Apr 09 - 17:20 gmt
Jim Cramer said ...
BOOYAH!!! Depends on your viewpoint....when I ran a hedge fund with Karen Cramer and blew the lights out Karen always said whatever goes up comes down and whatever comes down goes up.....BOOYAH!!!!!
24 Apr 09 - 17:22 gmt
Moron said ...
But Jim...that still doesn't solve bitter anon's dilemma....I feel his pain!!
24 Apr 09 - 17:22 gmt
Moron said ...
BOOYAH!!!....Dough Kass made the call of a lifetime....generational bottom.....u should have bought....u know I did.....for my charity portfolio.....u know I don't run money anymore....running money is for idiots!!!....and u know I'm not an idiot.....don't u:))))
24 Apr 09 - 17:24 gmt
Moron said ...
I love the idea that there might be several Morons on here individually posting inanities & the joke is in fact on anon
24 Apr 09 - 17:25 gmt
Moron said ...
ckkkkkk:))))
24 Apr 09 - 17:26 gmt
curate said ...
I am a civil man. I like almost everyone. Yet this Moron fellow is intolerably irritating. Who the devil is he?
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