Gizmodo Has New iPhone 4G

Posted by Sean Doyle, April 22, 2010

UPDATE!!!

From Yahoo:

By JESSICA MINTZ, AP Technology Writer – Mon Apr 26, 5:46 pm ET

"SEATTLE – Authorities seized computers, digital cameras, a cell phone and other items from a technology blog editor who posted pictures and details of a lost iPhone prototype. A computer-crime task force made up of multiple law enforcement agencies searched Gizmodo editor and blogger Jason Chen's house and car in Fremont, Calif., on Friday, according to a statement and search warrant documents provided by Gizmodo."

FALL OF THE HOUSE OF BLANKFEIN?

Posted by Sean Doyle, April 16, 2010

Photo Courtesy of Reuters

FRAUD!!!!!!

Out on the wires:

"The SEC alleged that Goldman structured and marketed a synthetic collateralized debt obligation that hinged on the performance of subprime residential mortgage-backed securities, and which cost investors more than $1 billion.

It alleged that Goldman did not tell investors "vital information" about the CDO, called ABACUS. This included that a major hedge fund, Paulson & Co, was involved in choosing which securities would be part of the portfolio, and had taken a short position against the CDO in a bet its value would fall."

The Old Switcharoo Game Gets Nixed. Kinda.

Posted by Colin Doyle, April 14, 2010

If you wind up overdrawing your bank account it's your own fault. You can't blame anyone or anything beside yourself for not keeping track of your own account balance.

...or can you?

I have on several occasions had the misfortune of overdrawing my own account and frequently baffled as to why this might be, I looked into it a bit. Turns out Bank of America has a method to the "pending" madness that you see when you're logged into your online banking account. What the bank does is shuffle the larger transactions underneath the smaller ones. This, the bank claims, is done so that larger or "more important" transactions have a "better chance to clear".

...What the bank is really doing

Most people keep track of their immediate spending in their own heads, picturing it in chronological order. ATM withdrawls, debit card purchases, checks, etc. However, Bank of America shuffles your transactions around. Lets say you wrote a large check, and had made a series of small debit card purchases before the receipiant deposited your check. Instead of the check being returned (if you can't cover it,) it is shuffled back before the debit card transactions. Now each of those small transactions will result in a $35 overdraft fee. These really add up for the bank and have brought in almost 2 billion annually. Since you have no ability to see when your check might clear or where in your history of transactions it is going to pop up, lets just say you can count on it popping up in just the right spot to drag you negative and force all your minor transactions to result in separate fee's. Picture laughing capitalists smoking cigars made out of hundred dollar bills.

The days of switcharoo are coming to an end as banks are facing new regulations that limit their ability to rape their own customers. How unamerican. I know. But I wouldn't hold your breath for any real justice. These are the banks that brought us mortgage securitization and subsequently the end of the world. These new rules will only be a mere annoyance to them. Picture arch vilian waving fist and vowing to return.

More details HERE

KRUGMAN VS. SORKIN!!!

Posted by Sean Doyle, April 14, 2010

The ongoing smackdown between NY Times stars Andrew Ross Sorkin and Paul Krugman continues. Today Sorkin hit back at The Krug with a slightly snarky letter on the NYT website.

Here's a piece:

"I appreciate that you may have articulated the details of your views differently, or more specifically, in other columns and forums. And I appreciate that you could quibble with my words. But I do think it is clear that both you and Mr. Roubini had pressed for a Swedish-style nationalization. (By the way, at the time, I had thought the Swedish model was a pretty interesting approach, too.)"

Your move Krug!!!!!

DOW GOES TO ELEVEN!

Eleven thousand that is! The market has defied the collected wisdom of just about every pundit. It was not but a year ago the notion of a V shaped recovery would have been laughable to most people. Yet here we are roughly 11 months from the march lows of 2009, and much like Nigel seen above with his flying V, the markets flying V (shaped recovery) has gone to 11 (thousand) on the dow for the first time since September of 2008. I plan to celebrate this moment by blasting Stonehenge and going short at 11,110.00.

Trade is: Long Your own research. Short The market.

THE MAGNETAR TRADE

Posted by Sean Doyle, April 10, 2010

Great Article on ProPublica about the super secretive trade placed by Chicago based hedge fund Magnetar.  Authors Jesse Eisinger and Jake Bernstein go into exhaustive detail on this dual (duplicitous) strategy winner that brought big time returns to the Magnetar Fund.

From the article:

"Records it shared with investors show Magnetar had a spectacular 2007. Founder Alec Litowitz pulled down $280 million, according to Alpha Magazine. That spring, a trade journal awarded Prusko and Snyderman "Investor of the Year" honors. The Magnetar Constellation Fund, the firm's fund that had the most exposure to the CDO trades, was up 76% in 2007."

How did a fund that was knee deep in toxic CDO's at the height of the housing bubble pull this off? READ HERE. 

This !@#$$%% GUY

I call bullshit...

Robert Rubin held a de facto "advisory" post at Citi in return for a multi-million dollar salary ($115 milllion over ten years). Rubin was a of jerk of all trades for the company: consultant, political conduit, chick magnet, etc. Basically Rubes was a p.r. hire by Citi to curry Wall Street's favor. But most of all Rubin was just an arrogant prick.

I skipped the testimony yesterday because...

A. The Financial Crisis Inquiry Commission. (give me a f*cking break)

B. The Financial Crisis Inquiry Commission. (give me a f*cking break)

Rubin is that friend you hang out with and when a fight breaks out old Rubes doesn't step in to back you up. Decisively loyal only to himself, he is convinced there was no justification for his presence at yesterdays hearing. As a ghost employee, Rubin enjoys a certain immunity from direct responsibility. It's as though he was Rubin Corp hired by Citi to consult, but in no way has to take the heat for any blow-up because he wasn't management. For the money they paid him.... brilliant. Still, I can't help but despise his arrogance. Even if you aren't management, if the company you consult for goes out of business you (should) lose too. No matter what you tell yourself.

Crazed Ex-Hedge Fund Manager Seen Eating From Dumpster!!

Posted By Sean Doyle, April 8, 2010

Image Courtesy of GAWKER

Well, not exactly.  Apparently Jim Cramer was captured e-mailing his resume to Rupert Murdoch and the Fox Business Channel. This after Michelle Caruso-Cabrera rebuffed his advances for the umpteenth time.

The iPad Cometh!

Posted by Sean Doyle, April 1, 2010

Graphic courtesy of Gizmodo

With Apple's stock up a modest 200% in the last year, the question is...Is now the time to commit more capital to the king of tech-land or should you take the money and run?

The Bull Case here: Apple $500

The Bear Case here: Apple $150

60 Minutes (Of Nonsense)

Posted by Colin Doyle, April 1, 2010

Recently, I recalled watching this 60 minutes piece from back in 2008. In the segment, Lesley Stahl does an awful job interviewing Ken Lewis about Bank of America. What stood out to me about the piece was how Lewis was painted as a sweet small time banker from Charlotte N.C. According to Stahl, Lewis had "beaten" Wall St. by avoiding the kind of insane risk and greed that had brought down the big players from NY.  Stahl even highlights BofA's acquisitions of Countrywide and Merrill Lynch. Apparently Lewis had used the same savvy business acumen that helped steer him clear of the sub-prime lending business to purchase these companies ..... who ..... were ...... both ...... worthless .... because of their EXPOSURE TO SUB-PRIME! A real Captain Of Industry!

The only thing stretched tighter then the bullshit in this interview are the faces of Ken Lewis and Lesley Stahl. If memory serves correctly BofA stock went from about the mid twenties to the mid two's in the 6 months following her interview with lewis.

Trade is: Long Plastic Surgery. Short 60 Minutes.