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We all throw up,



May 10, 2008 – Comments (8)

We all throw up,

Hi ho the dairo,

We all throw up.  (Sing to the "Farmer in the Dell")

GS751 just sent me David Einhorn's speech from Grant's Spring Investment Conference a month ago.

We all throw up,

We all throw up,

Hi ho the dario,

We all throw up...

I thought bank leverage ratios were already bad, and I am shocked at what qualifies to be counted for calculating leverage ratios, "preferred stock and subordinated debt."  Einhorn contrasts the types of securities the bankrupt Carlyle Capital held to the types of securities banks hold and that simply doesn't look good.

My goodness, investment banks pay out 50% of revenue as compensation?  This is discussed in the last paragraph of the first page.  Kiss all of this money that has been spent in the economy good-bye, along with any multiple spending from it.  I thought the 2-20% was bad, and already considered it an enormous problem.

This one is a good read. It has lots in it and I am not going to go over it all.

Thanks George

8 Comments – Post Your Own

#1) On May 10, 2008 at 8:44 PM, abitare (29.54) wrote:

dwot i could not get the link to work

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#2) On May 10, 2008 at 8:52 PM, MakeItSeven (31.71) wrote:

Just delete the redundant https:// in the URL to get it to work.

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#3) On May 10, 2008 at 10:58 PM, lquadland10 (< 20) wrote:

You had a news black out about  the spp   listen  to the last one first Depression,Banks,Housing

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#4) On May 10, 2008 at 10:59 PM, abitare (29.54) wrote:


Thank you. It is like the keys in your pants pocket that you have been looking for but cannot find. 


OMG. What a great find! I just posted on these guys today on bottom of my post:

CNBC May 9 2008, make a call here: William Ackman, Pershing Square Capital Management and David Einhorn, Greenlight Capital Management:

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#5) On May 10, 2008 at 11:46 PM, Tastylunch (28.52) wrote:

I wish I hadn't eaten before reading this.

Urp. I think I'm gonna be sick.

Seriously that coke vs water analogy on page 7 was spot on. 

Guess I should re redthumb LEH and MBIA 

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#6) On May 10, 2008 at 11:53 PM, MakeItSeven (31.71) wrote:

Good article. 

Bush's professor at Harvard knew Bush as a pathological liar but he had a pretty high opinion of Chris Cox. It seems his trust in Cox was misplaced.  I don't believe all those new rules at the SEC, at the requests of the investment banks, were the results of stupidity alone.

No wonder why Paulson was picked as Treasury secretary.  These crooks are neck deep in this scheme to rob the US.

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#7) On May 11, 2008 at 12:20 AM, AnomaLee (28.90) wrote:

Thanks for the link...

Ignorance is bliss has its meanings... Unfortunately, too many have been living a blissful life

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#8) On May 11, 2008 at 12:19 PM, dwot (28.88) wrote:

This weekend the news was particularly dire.  It just seemed to me that the message about the degree of the problems was repeated over and over and over.

I keep thinking I know how bad it is and the I read something like Einhorn who points out the "good" stuff isn't good.  I thought the reserves were cash or cash equivalent.

MakeItSeven, I have constantly found Bush's policies totally lacking ethics.  And I find it interesting that you link that article.  I always figured him for one that wouldn't get anywhere on his own feet, but entirely because of connections. 

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