Wednesday, December 3, 2008

Global Imbalances, Stag-delfation, FDIC debt, the BUBBLE, and Tax Planning

For today's post I just have to link to a handful of good articles in the FT, but first, a few words about private equity. It is a big mess!!!!! I believe many of the funds, especially the ones doing the mega cap deals, are basically toast. They did deals that on a marked to market basis are worth nothing, yet I am sure they are marked a lot higher. Basic assumptions about how private equity works are out the window. There is going to be huge failures in terms of capital calls, big liquidty problems, and litigation up the ying yang. A mess....

A few must read articles from the FT
- On Global Imbalances and trade.
- On the rush to issue debt guaranteed by the FDIC. ( remember a few days ago when I said GS was the first and there would be much to follow)
- On GURU Nouriel Roubini's latest thinking - not good.
- On Sliding bond yields spur bubble talk.

And one from yesterdays WALL STREET JOURNAL - on year end tax planning. The only good news in a bad market - tax lost harvesting!

And one I just happened upon about Goldman and what has changed.

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