My eyes deceive me but the Economist today endorsed the candidacy of Barack Obama for President. In a very well balanced article the magazine reviews the records and abilities of both candidates to lead us out of the mire. Some snippets:
For all the shortcomings of the campaign, both John McCain and Barack Obama offer hope of national redemption. Now America has to choose between them. The Economist does not have a vote, but if it did, it would cast it for Mr Obama. We do so wholeheartedly: the Democratic candidate has clearly shown that he offers the better chance of restoring America’s self-confidence. But we acknowledge it is a gamble. Given Mr Obama’s inexperience, the lack of clarity about some of his beliefs and the prospect of a stridently Democratic Congress, voting for him is a risk. Yet it is one America should take, given the steep road ahead.
Ironically, given that he first won over so many independents by speaking his mind, the case for Mr McCain comes down to a piece of artifice: vote for him on the assumption that he does not believe a word of what he has been saying. Once he reaches the White House, runs this argument, he will put Mrs Palin back in her box, throw away his unrealistic tax plan and begin negotiations with the Democratic Congress. That is plausible; but it is a long way from the convincing case that Mr McCain could have made. Had he become president in 2000 instead of Mr Bush, the world might have had fewer problems. But this time it is beset by problems, and Mr McCain has not proved that he knows how to deal with them.
So Mr Obama in that respect is a gamble. But the same goes for Mr McCain on at least as many counts, not least the possibility of President Palin. And this cannot be another election where the choice is based merely on fear. In terms of painting a brighter future for America and the world, Mr Obama has produced the more compelling and detailed portrait. He has campaigned with more style, intelligence and discipline than his opponent. Whether he can fulfil his immense potential remains to be seen. But Mr Obama deserves the presidency.
-Courtesy of The Economist
Thursday, October 30, 2008
Thursday, October 23, 2008
HedgeFunder Says F*** You
I have been dying to publish this letter since I read of its existence in the Los Angeles Times. Please enjoy hedgefunder Andrew Ladhe's farewell letter to his clients & colleagues:
Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.
Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, "What I have learned about the hedge fund business is that I hate it." I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.
There are far too many people for me to sincerely thank for my success. However, I do not want to sound like a Hollywood actor accepting an award. The money was reward enough. Furthermore, the endless list those deserving thanks know who they are.
I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.
So this is it. With all due respect, I am dropping out. Please do not expect any type of reply to emails or voicemails within normal time frames or at all. Andy Springer and his company will be handling the dissolution of the fund. And don't worry about my employees, they were always employed by Mr. Springer's company and only one (who has been well-rewarded) will lose his job.
I have no interest in any deals in which anyone would like me to participate. I truly do not have a strong opinion about any market right now, other than to say that things will continue to get worse for some time, probably years. I am content sitting on the sidelines and waiting. After all, sitting and waiting is how we made money from the subprime debacle. I now have time to repair my health, which was destroyed by the stress I layered onto myself over the past two years, as well as my entire life -- where I had to compete for spaces in universities and graduate schools, jobs and assets under management -- with those who had all the advantages (rich parents) that I did not. May meritocracy be part of a new form of government, which needs to be established.
On the issue of the U.S. Government, I would like to make a modest proposal. First, I point out the obvious flaws, whereby legislation was repeatedly brought forth to Congress over the past eight years, which would have reigned in the predatory lending practices of now mostly defunct institutions. These institutions regularly filled the coffers of both parties in return for voting down all of this legislation designed to protect the common citizen. This is an outrage, yet no one seems to know or care about it. Since Thomas Jefferson and Adam Smith passed, I would argue that there has been a dearth of worthy philosophers in this country, at least ones focused on improving government. Capitalism worked for two hundred years, but times change, and systems become corrupt. George Soros, a man of staggering wealth, has stated that he would like to be remembered as a philosopher. My suggestion is that this great man start and sponsor a forum for great minds to come together to create a new system of government that truly represents the common man's interest, while at the same time creating rewards great enough to attract the best and brightest minds to serve in government roles without having to rely on corruption to further their interests or lifestyles. This forum could be similar to the one used to create the operating system, Linux, which competes with Microsoft's near monopoly. I believe there is an answer, but for now the system is clearly broken.
Lastly, while I still have an audience, I would like to bring attention to an alternative food and energy source. You won't see it included in BP's, "Feel good. We are working on sustainable solutions," television commercials, nor is it mentioned in ADM's similar commercials. But hemp has been used for at least 5,000 years for cloth and food, as well as just about everything that is produced from petroleum products. Hemp is not marijuana and vice versa. Hemp is the male plant and it grows like a weed, hence the slang term. The original American flag was made of hemp fiber and our Constitution was printed on paper made of hemp. It was used as recently as World War II by the U.S. Government, and then promptly made illegal after the war was won. At a time when rhetoric is flying about becoming more self-sufficient in terms of energy, why is it illegal to grow this plant in this country? Ah, the female. The evil female plant -- marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country. My only conclusion as to why it is illegal, is that Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other additive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers. This policy is ludicrous. It has surely contributed to our dependency on foreign energy sources. Our policies have other countries literally laughing at our stupidity, most notably Canada, as well as several European nations (both Eastern and Western). You would not know this by paying attention to U.S. media sources though, as they tend not to elaborate on who is laughing at the United States this week. Please people, let's stop the rhetoric and start thinking about how we can truly become self-sufficient.
With that I say good-bye and good luck.
All the best, - Andrew Lahde
Today I write not to gloat. Given the pain that nearly everyone is experiencing, that would be entirely inappropriate. Nor am I writing to make further predictions, as most of my forecasts in previous letters have unfolded or are in the process of unfolding. Instead, I am writing to say goodbye.
Recently, on the front page of Section C of the Wall Street Journal, a hedge fund manager who was also closing up shop (a $300 million fund), was quoted as saying, "What I have learned about the hedge fund business is that I hate it." I could not agree more with that statement. I was in this game for the money. The low hanging fruit, i.e. idiots whose parents paid for prep school, Yale, and then the Harvard MBA, was there for the taking. These people who were (often) truly not worthy of the education they received (or supposedly received) rose to the top of companies such as AIG, Bear Stearns and Lehman Brothers and all levels of our government. All of this behavior supporting the Aristocracy, only ended up making it easier for me to find people stupid enough to take the other side of my trades. God bless America.
There are far too many people for me to sincerely thank for my success. However, I do not want to sound like a Hollywood actor accepting an award. The money was reward enough. Furthermore, the endless list those deserving thanks know who they are.
I will no longer manage money for other people or institutions. I have enough of my own wealth to manage. Some people, who think they have arrived at a reasonable estimate of my net worth, might be surprised that I would call it quits with such a small war chest. That is fine; I am content with my rewards. Moreover, I will let others try to amass nine, ten or eleven figure net worths. Meanwhile, their lives suck. Appointments back to back, booked solid for the next three months, they look forward to their two week vacation in January during which they will likely be glued to their Blackberries or other such devices. What is the point? They will all be forgotten in fifty years anyway. Steve Balmer, Steven Cohen, and Larry Ellison will all be forgotten. I do not understand the legacy thing. Nearly everyone will be forgotten. Give up on leaving your mark. Throw the Blackberry away and enjoy life.
So this is it. With all due respect, I am dropping out. Please do not expect any type of reply to emails or voicemails within normal time frames or at all. Andy Springer and his company will be handling the dissolution of the fund. And don't worry about my employees, they were always employed by Mr. Springer's company and only one (who has been well-rewarded) will lose his job.
I have no interest in any deals in which anyone would like me to participate. I truly do not have a strong opinion about any market right now, other than to say that things will continue to get worse for some time, probably years. I am content sitting on the sidelines and waiting. After all, sitting and waiting is how we made money from the subprime debacle. I now have time to repair my health, which was destroyed by the stress I layered onto myself over the past two years, as well as my entire life -- where I had to compete for spaces in universities and graduate schools, jobs and assets under management -- with those who had all the advantages (rich parents) that I did not. May meritocracy be part of a new form of government, which needs to be established.
On the issue of the U.S. Government, I would like to make a modest proposal. First, I point out the obvious flaws, whereby legislation was repeatedly brought forth to Congress over the past eight years, which would have reigned in the predatory lending practices of now mostly defunct institutions. These institutions regularly filled the coffers of both parties in return for voting down all of this legislation designed to protect the common citizen. This is an outrage, yet no one seems to know or care about it. Since Thomas Jefferson and Adam Smith passed, I would argue that there has been a dearth of worthy philosophers in this country, at least ones focused on improving government. Capitalism worked for two hundred years, but times change, and systems become corrupt. George Soros, a man of staggering wealth, has stated that he would like to be remembered as a philosopher. My suggestion is that this great man start and sponsor a forum for great minds to come together to create a new system of government that truly represents the common man's interest, while at the same time creating rewards great enough to attract the best and brightest minds to serve in government roles without having to rely on corruption to further their interests or lifestyles. This forum could be similar to the one used to create the operating system, Linux, which competes with Microsoft's near monopoly. I believe there is an answer, but for now the system is clearly broken.
Lastly, while I still have an audience, I would like to bring attention to an alternative food and energy source. You won't see it included in BP's, "Feel good. We are working on sustainable solutions," television commercials, nor is it mentioned in ADM's similar commercials. But hemp has been used for at least 5,000 years for cloth and food, as well as just about everything that is produced from petroleum products. Hemp is not marijuana and vice versa. Hemp is the male plant and it grows like a weed, hence the slang term. The original American flag was made of hemp fiber and our Constitution was printed on paper made of hemp. It was used as recently as World War II by the U.S. Government, and then promptly made illegal after the war was won. At a time when rhetoric is flying about becoming more self-sufficient in terms of energy, why is it illegal to grow this plant in this country? Ah, the female. The evil female plant -- marijuana. It gets you high, it makes you laugh, it does not produce a hangover. Unlike alcohol, it does not result in bar fights or wife beating. So, why is this innocuous plant illegal? Is it a gateway drug? No, that would be alcohol, which is so heavily advertised in this country. My only conclusion as to why it is illegal, is that Corporate America, which owns Congress, would rather sell you Paxil, Zoloft, Xanax and other additive drugs, than allow you to grow a plant in your home without some of the profits going into their coffers. This policy is ludicrous. It has surely contributed to our dependency on foreign energy sources. Our policies have other countries literally laughing at our stupidity, most notably Canada, as well as several European nations (both Eastern and Western). You would not know this by paying attention to U.S. media sources though, as they tend not to elaborate on who is laughing at the United States this week. Please people, let's stop the rhetoric and start thinking about how we can truly become self-sufficient.
With that I say good-bye and good luck.
All the best, - Andrew Lahde
Friday, October 17, 2008
Flagnation
My apologies for mistaking the state flag of Ohio as a customized Obama flag. You have to admit that it is awfully close, especially when viewed limp on a tight TV shot (sounds way too erotic). My sincere apologies to all of you Buckeyes, but your flag is very unstatelike.
California
Off to California tomorrow for a few days of potential client meetings. I am traveling without the handy laptop, so no posting until my return next week. Alot to report as banks refuse to loosen up any of the taxpayer money in their possession and term limit hearings continued for a second day in NYC. Wishing you all a lovely autumnal weekend.
Thursday, October 16, 2008
Debate & Losers
Debate III- Much better format last night and it seemed likely that John McCain’s head was about to explode. Bob Schiefer in my humble opinion had decent questions, but hardly unusual.
No Abortion
Vouchers
Joe Plumber
Nuclear
Oil
Cut Capital Gains
No New Taxes
I could have closed my eyes and been back in high school. With all the new challenges facing the world the candidates are still debating old news instead of future solutions. This is a nation of consumptive, ignorant citizens. Time to wake up my fellow citizens. McCain this time came across as much more snarky and dismissive. Rolling his eyes, making strange facial expressions sometimes I believe he thought he was on The Daily Show. McCain continues to prioritize and advocate every wrong solution to future clean energy and again stumbles over just how to dispose of spent nuclear fuel. Also, McCain’s health care plan is the ultimate joke. Even my dedicated Republican sister who employed by a health insurance provider is stunned by the McCain proposal. Voters should be mortified of his idea as it suggests a large majority of Americans could be self-insuring themselves. I just don’t understand where either of the candidates is going to come up with the amount of money needed to fix all this nation’s ills within our borders. Especially McCain who comes off so bipolar on the issue of cutting spending and spending billions on his programs. Overall, this debate did little as a game changer so it’s back to tv ads and stump speeches for the next 19 days.
Senator Jerk- Loser Joe Lieberman is at it again, this time supporting the reelection of Republican Senator Norm Coleman in Minnesota. I am admittedly no fan of the arrogant Al Franken, but Lieberman continues to thumb his nose at the Democratic Party. Lieberman’s true Judas move will be after the election, if Democrats reach a 60-seat Senate majority, I guarantee Lieberman will switch party affiliation to Republican and deprive the Dems of a veto-proof majority. Lieberman needs to be retired from the Senate by the people of Connecticut in his next race for reelection.
No Abortion
Vouchers
Joe Plumber
Nuclear
Oil
Cut Capital Gains
No New Taxes
I could have closed my eyes and been back in high school. With all the new challenges facing the world the candidates are still debating old news instead of future solutions. This is a nation of consumptive, ignorant citizens. Time to wake up my fellow citizens. McCain this time came across as much more snarky and dismissive. Rolling his eyes, making strange facial expressions sometimes I believe he thought he was on The Daily Show. McCain continues to prioritize and advocate every wrong solution to future clean energy and again stumbles over just how to dispose of spent nuclear fuel. Also, McCain’s health care plan is the ultimate joke. Even my dedicated Republican sister who employed by a health insurance provider is stunned by the McCain proposal. Voters should be mortified of his idea as it suggests a large majority of Americans could be self-insuring themselves. I just don’t understand where either of the candidates is going to come up with the amount of money needed to fix all this nation’s ills within our borders. Especially McCain who comes off so bipolar on the issue of cutting spending and spending billions on his programs. Overall, this debate did little as a game changer so it’s back to tv ads and stump speeches for the next 19 days.
Senator Jerk- Loser Joe Lieberman is at it again, this time supporting the reelection of Republican Senator Norm Coleman in Minnesota. I am admittedly no fan of the arrogant Al Franken, but Lieberman continues to thumb his nose at the Democratic Party. Lieberman’s true Judas move will be after the election, if Democrats reach a 60-seat Senate majority, I guarantee Lieberman will switch party affiliation to Republican and deprive the Dems of a veto-proof majority. Lieberman needs to be retired from the Senate by the people of Connecticut in his next race for reelection.
Wednesday, October 15, 2008
Tuto di Capo & Mayor for Life
Il Tuto Di Capo Paulson- Maybe it was the fact that Silvio Berlusconi was in the Capital that influenced Henry Paulson to act like a Mafia Capo ( I am Italian-American so lay off) this past Monday. The NY Times reports a remarkable behind the scenes account of what occurred when Paulson and Ben Bernanke met with the CEOs of the nation’s 9 largest banks. A single-page document was placed at each seat with each attendee being told by Paulson they would have to sign it before they left the room. This is totally fascinating as the meeting was reported to have many heated exchanges with Ben Bernanke having to try to keep the peace. Of course these arguments included one by Wells Fargo CEO Richard M. Kovacevich raising his concern about the limits on executive compensation in accepting the government's capital injections. These guys are such misguided greed mongers that allowing them all to fail may be the only thing that will wake their senses. The fact of the matter is this initial $250 billion is on much more favorable terms for these banks than the terms Warren Buffet ended up getting for his mere $5 billion investment in Goldman Sachs. Fiction writers could not come up with this stuff folks.
Left Wing Liberal Media- I cannot believe it but again yesterday, it was reiterated that spokesmodel Sarah Palin was the best speaker of all four people on the presidential tickets. Folks it is getting surreal out there and more like bizarro world. No other than Andrea Mitchell from that Obama-loving MSNBC repeated this ridiculous talking point. Why does the media spin things and continue to take voters intelligence (or lack of it) for granted. This really is one of the greatest reaches of all time to crown this mediocre, non- thinking, absurdist as the best speaker of all the candidates. I just cannot hear this argument proclaimed one more time in this election.
Weiner for Mayor- Congressman Anthony Weiner of Brooklyn is continuing on with his campaign for mayor of New York City. Unlike all the others that are genuflecting and bowing before the Billionaire Bloomberg this scrappy guy is going to take the king on. Weiner has set up a website LetNYCVote.com that encourages city residents to protest the lifting of term limits at a Thursday hearing at City Hall. Weiner has already raised $5 million for his campaign and has his sights on multiples of this. Billionaire Bloomberg is speculated to have budgeted $80 million to buy his third term. Every middle and lower class New Yorker should stand up to this billionaires and millionaires trying to circumvent the will of us voters.
Goodbye, Buckley- It seems Christopher Buckley’s endorsement of Barack Obama for president on The Daily Beast website managed to get him ousted from the National Review which was founded by his father William Buckley. Buckley was under heavy pressure from conservative nuts to resign and he proffered just that and it was accepted with zero discussion. As I wrote yesterday conservatives are now eating their own and this election cycle should leave them in disarray for decades. It is nice to see someone stands by his beliefs like Christopher Buckley only to then be thrown overboard. Democracy continues to get itself on rocky ground when one speaks and then is instantly punished.
Polls- Looks like out of the 11 toss-up states Barack Obama only needs to win one with 9 electoral votes and John McCain needs to win all 11! On top of all this, there are at least 2-3 Republican strongholds that are trending away meaning McCain would need to win something more like 14-15 toss-up states. The odds are continuing to look pretty grim for the McCain camp.
Tuesday, October 14, 2008
ObamaNation & McCain's Chicks
Obamessiah is busy promising everything to everyone yesterday while in Toledo, Ohio. His I am going to win spending binge included tax cuts “so you can buy a new winter coat” (you’ll need it since you will have no heat or perhaps no house) and he clearly loves Detroit because he is prepared to give those automaker imbeciles an additional $25 billion in bailout money. I noticed during this speech that the ObamaNation even has its own branded flag on the dais next to the US version.
Eskimo and the Igloo- For being such a tough guy and war hero it has been interesting to watch John McShame make all his women do the fighting. He cannot show up at a rally without having in tow his Eskimo Palin and his Igloo Cindy (who the hell dresses her). What terrible taste in women this man has. Sarah Palin has proven to be the imbecilic, non engaged, infomercial hostess that we all initially thought. Republicans, and not just McCain should be embarrassed for unleashing her, as conservative New York Times columnist David Brooks puts it “ she is a cancer on the Republican Party”. For the most part the “liberal media” has fallen all over itself to heap accolades on Palinocrity as a wonderful and charismatic campaigner. What utter bullshit. The abandonment of the McCain campaign by droves of conservatives from Bill Kristol, Christopher Hitchens, George Will and Brooks should be concerning. Christ even Florida Governor Charlie Crist is making clear he will be somewhat unavailable to the McCain campaign. It’s so insulting to voters that this is McCain’s chosen path to continually dumb down for the “low information voters” as Chris Matthews refers to them. After nearly 20 years of consistent Republican executive rule (short of Clinton’s 8 years) it is now clear the party is not only ideologically & intellectually bankrupt , but that it actually prefers “dumb” as a platform to run on. Dumb is the mantra for the past 8 years and it should come as no surprise that McCain (894 out of 899 in his Annapolis class) would be so self serving as to embrace it. It clearly looks as though after this election the GOP (Grand OBTUSE Party) will be in searching in the woods for decades to find an identity based on any intelligence and ideas.
Saturday, October 11, 2008
Billionaires in Bloom-berg
Bloomberg’s Billionaires- What a sham is transpiring here in NYC to keep Michael Bloomberg as mayor for a third term. Why should we have an election? Let’s just anoint him as all his rich friends in Manhattan have advocated. Term limits are such a inconvenient issue, that billionaire Ron Lauder had to step up and make the moral decision to support suspending the term limits in Bloomberg’s case. Bloomberg being the magnanimous citizen was quoted yesterday as saying “he is doing this for us citizens”. What utter bullshit and Bloomberg’s own self love is beyond shameless. It finally is reaching climax, where the rich in NYC will do whatever pleases them in their little kingdom. New York City has self fulfilled the prophecy of becoming a city for and by the rich. Never trust a Red Sox fan in New York.
Like Father, Like Son- Seems the apple does not fall too far from the tree. As Henry Paulson prints, borrows and steals money to pay for the mistakes of his Wall Street buddies, his son Merritt Paulson is seeking a taxpayer bailout of his own. According to The Oregonian, Paulson Jr is hoping Portland, Oregon taxpayers ante up $85 million for building a stadium to host his toy baseball team and hopeful soccer team. Junior, 35, is investing $40 million of his “own money” to purchase the soccer franchise, but is attempting to tap into state income taxes and city urban-renewal money meant to fight neighborhood blight. Paulson Jr owns 80% of both minor league teams, the Portland Beavers baseball team and the Portland Timbers soccer team. Guess who owns the other 20%?-- our faithful Treasury Secretary Hank Paulson. Junior is very busy spreading the family money around to lobbyists and those seeking local office.
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