May 27, 2008
Economic Toll Mounts From High Oil Prices - Time for the Betty Ford Clinic?
Analysis of:
Economic Toll Mounts From High Oil Prices | www.nytimes.comAuthor: GLG Expert ContributorThe US wastes massive amounts of energy in inefficient production facilities, via an inappropriate transportation system and in poorly designed homes and office buildings. Compounding the problem are financial institutions, which create commodities products for speculative purposes. Is it not time...
May 23, 2008
German State-Owned Banks - The Final Countdown to Self Destruction
Analysis of:
German State-Owned Banks on Verge of Collapse | www.spiegel.deAuthor: GLG Expert ContributorGerman government banks have made every mistake in the book over the years. It started with too much gapping in their interat rate book, improper stock trading, questionable commercial loans in connection with deals and most recently betting the ranch on structured credit positions. The final...
May 22, 2008
Moodys - Another Salomon Brothers for the Sage of Omaha to sort out?
Analysis of:
Moody's computer glitch led to incorrect rating of CPDO derivatives | www.forbes.comAuthor: GLG Expert ContributorSecurities fraud, weak supervision at a major participant in the securities industry sound familiar? Perhaps Moodys is another Salomon Brothers for the Sage of Omaha to sort out. As a 19% stakeholder, it seems to be his destiny. This would be a public service as the true destiny for the...
May 21, 2008
Target Date Fund Indexes - Another tax on investors and the global securities industry
Analysis of:
Target Date Fund Indexes | tdbench.comAuthor: GLG Expert ContributorIn every segment of the securities industry (clearing & settlement, custody, brokerage, securities and commodities exchanges, asset management and securities underwriting), we have achieved effective consolidation and ultimately cost reductions for all market participants - only the index data...
May 21, 2008
Saudi Sovereign Fund - Nothing New But Developments May Help Bring Middle East Peace
Analysis of:
Saudis to launch $5.3bn sovereign fund | www.ft.comAuthor: GLG Expert ContributorSAMA, the Saudia Arabian Monetary Authority, has been a long-term investor in international companies for years. SAMA, ADIA and KIA - along with many other regional banks - are active in public and private equity and debt markets. The real news is the growing total investment capital from the region...
May 20, 2008
AIG Financial Products - Captive Investment Bank?
Analysis of:
AIG Posts $7.8B Loss For 1Q | www.propertyandcasualtyinsurancenews.comAuthor: GLG Expert ContributorWas it really smart to mix insurance, investment banking, investment management and private banking? Which of the following is a success story: AIG, Allianz, AXA, ING, Citi, Fortis or Generali?
May 20, 2008
Germanic Airline for German Speaking Europe (Germany, Austria, Switzerland and Luxemburg)
Analysis of:
Austrian Airlines CEO open to majority takeover | www.reuters.comAuthor: GLG Expert ContributorSwiss Air, Austrian Air and Luxemburg Air are too small to operate economically in the medium and longer-term. A merger with Lufthansa is clearly the correct solution. The frequent flyer program of both Swiss Air and Austrian Air are already captive Lufthansa client reward systems. Why not...
May 20, 2008
The Mortgage and Housing Industry/Das Boot may not always surface in the end
Analysis of:
Fannie Is Poised to Scrap Policy Over Down Payments | online.wsj.comAuthor: GLG Expert ContributorIncreasing leverage got us into the credit crisis. With an upturn in housing prices perhaps 10 years away, how can this simple solution serve the new housing buyers or the broader economy?. We are basically transferring risk from banks and new housing buyers to the federal government. Sounds like...
May 19, 2008
Fair Value Accounting/Mark-to-Market Strengthen the System
Analysis of:
Some facts about fair value | www.fasb.orgAuthor: GLG Expert ContributorWithout the fair value accounting and mark-to-market concepts, the modern investment banking and asset management industry could not function. We live in a real time world and the above concepts reflect this fact. The real danger to the system is too much leverage, lax risk management and a missing,...
May 19, 2008
Money Market Securities and Bonds are not a girl's best friend
Analysis of:
Thin Yields Weigh on Investors | online.wsj.comAuthor: GLG Expert ContributorThe key to investment success is understanding: investment horizon, price, liquidity and inflation risk. The absolute level of return is not as important as the inflation and risk-adjusted return. If you invest in money market and short term bonds, you will never be a girl's best friend. Razor...
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