OT: The End of Wall Street's Boom

Normally I would not post things like this here, but I think some of you may find this interesting - an article on Wall Street by Michael Lewis, author of Moneyball.

about 1 year ago Telegraph 7 comments 2 recs |

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more than interesting

Should be required reading(and comprehension) by the “financial-elect” gurus of the Obama administration. Wouldn’t hurt if the outgoing administration understands as well. And the thought appears….well of course they understand. Oh really?

by oldcatsfan on Nov 13, 2008 12:18 AM CST reply actions 0 recs

Great read

I'd be curious to know how much those guys made shorting that market.

I'm undefeated in fights. Have I been in any? No. Thats because people know my f'ing status. Don't mess with the elite. - Miles

by Dirk Diggler on Nov 13, 2008 8:37 AM CST reply actions 0 recs

John Paulson, hedge fund manager

made a billion dollars last year shorting the market, IIRC. We talked about this yesterday in Institutions and Markets.

He began shorting 25+ bank stocks several years ago. Like Lehman for $120, buy back at $1 kind of deal. Citigroup sold at $30, bought back at $7 type of deal.

His hedge fund returned 19% during down markets.

That’s why you gotta love how it’s zero-sum =)

"He’s basically told himself unconsciously that he can’t be any good unless he catches 130 games a year. If he played with the baseball smarts of a guy like a David Eckstein, he’d maximize his talent and be an incredible player." - Andy Seiler, Texas Rangers Analyst

by Chase Irwin on Nov 13, 2008 8:55 AM CST up reply actions 0 recs

I like the premise

A lot of people say they saw this coming but few actually did. And among those few who actually saw this coming, even fewer put their money on the line to take advantage of it. Steve Eisman’s story is an interesting topic and I would like to see it fleshed out, maybe as a book or movie.

Signature! I don't need no stinking signature!!

by DerekSTheRed on Nov 13, 2008 9:56 AM CST reply actions 0 recs

Great article

a nice look at some of the gory details of the Age of Financial Hubris.

G G G E-flat_______ F F F D__________....

by t ball on Nov 13, 2008 10:57 AM CST reply actions 0 recs

Thanks

Anecdotal, but impossible to be bored. The backstory matches what I’ve been told, from one inside a US PE firm and from their PB’s in Europe. I sent to think to both people.

"He uses statistics as a drunken man uses lamp-posts... for support rather than illumination." - Andrew Lang (1844-1912)

by Ed Coffin on Nov 13, 2008 2:49 PM CST reply actions 0 recs