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Joseph L. Shaefer » Comments » BHI

  • Wall Street Breakfast: Must-Know News [View article]
    "The government, which controls Fannie, is thought to be reluctant to approve a deal that would allow Goldman to save on taxes, given the firm's already tenuous standing with lawmakers and on Main Street; taking widely-respected Buffett as a partner could reduce the tension."

    It could. Or when combined with TARP money and sweetheart deals with GE and GS, it could tarnish Warren Buffett's reputation. Lie down with dogs, get up with fleas...
    Nov 04 09:48 am |Rating: +9 -1 |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    "...in the nine months that ended June 30, investors withdrew around $300B from hedge funds..."

    It's worse than we think if this story is accurate and investors actually << withdrew >> $300 billion. Not long ago, I addressed the annual GAIM Fund of Funds (hedge funds) conference and uncovered a little-known facet of hedge fund management. The hedge funds have FAR more than this $300 billion in liabilities to their investors.

    Once a hedge fund investors "requests withdrawal" the hedge fund has a contractual obligation to refund anywhere from x months to x years. However, the hedge fund then effectively becomes a liquidating trust. It cannot buy anything with the funds earmarked for refunds but must only hope for a rising market in order to get the best price for assets earmarked for refund.

    In other words, they have every reason to hype, fabricate and cheerlead stocks higher but no ability to fan the flames of a higher market with actual purchases.

    If $300 billion is already withdrawn, there is at least that much ready to be sold at the first hint of lower prices...
    Aug 31 11:14 am |Rating: +5 0 |Link to Comment
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