Ry Cooder – “No Banker Left Behind” – 
Archive for wall street
It’s not quite noon in New York today August 4, 2011 and the Dow is down 350 points already. Will this be Black Thursday? Will the market close early today, suspending trading, circuit breakers? Or will the Plunge Protection Team (PPT) step in with taxpayer money to prop up the bankster ponziconomy? Stay tuned…..
update 2 pm new york time Dow still down 340 points, there was the usual ppt bounce after noon but it didn’t last…..still 2 hours to go but the trend at the moment is down.
update 4 pm market closes with Dow down 512 points, and clearly signs of panic in the last hour.
TOKYO (Reuters) – A Morgan Stanley property fund failed to make $3.3 billion in debt payments by a deadline on Friday, handing over the keys to a central Tokyo office building to Blackstone (BX.N) and other investors, the largest repayment failure of its kind in Japan.
Taking advantage of a run-up in property prices, MSREF V refinanced its debt on the Shinagawa property in 2007 with new debt worth 278 billion yen, twice the value of its purchase and likely yielding a tidy profit for the fund.
The refinanced debt was sold in six different tranches by Morgan Stanley to investors.
James Gorman, the CEO of Morgan Stanley, saw his 2010 compensation rise to $15.2 million from $6.5 million in 2009, according to an Associated Press analysis of data filed with regulators.
The failure of the 77-year-old company is raising anger locally at Wall Street, which is seen as recklessly borrowing to do the buyout without regard for the local economy, workers or the business.
“Buying a successful company like Harry & David, and crushing it under millions in bonding debt required to pay for the purchase may be known as brilliant financial maneuvering on Wall Street,” said state representative Dennis Richardson, whose district includes the Rogue Valley. Mr. Richardson added: “Oregon citizens have a different name for it.”
via the Wall St. Journal:
“If the goal were to encourage “investing” while reining in the sort of speculations which “earn” hedge fund managers $600 million each (no typo, that was the average of the top 10 hedgies’ personal take of their funds gains), then all unearned income (interest, dividends, capital gains, rents from property, oil wells, etc.) up to $6,000 a year would be free–no tax. Unearned income between $6,000 and $60,000 would be taxed at 20%, roughly half the top rate for earned income. This would leave 95% of U.S. households properly encouraged to invest via low tax rates.
Above $60,000, then unearned income would be taxed the same as earned income, and above $1 million (the top 1/10 of 1% of households) then it would be taxed at 50%. Above $10 million, it would be taxed at 60%. Such a system would offer disincentives to the speculative hauls made by the top 1/10 of 1% while encouraging investing in the lower 99%.”
For others, a big payday(or a big flotation device) when a stock goes from $40 to 1 cent in less than an hour. This is like when you hit a big jackpot these days in the casino and they tell you that the machine malfunctioned. The stock market game is fixed. Is there any doubt any more? All of the workers pension retirement money invested there, just to be scammed away. Tsk, tsk.
The big question is what happens to all the derivative bets made on the values of the underlying trades that have been cancelled? They are worth much more (in fantasy money) than the underlying stocks. Oops.
from CNN Money:
“Accenture (ACN) fell from $40.13 at 2:45 p.m. all the way to just 1 cent before quickly rising back to $39.57.
Sam Adams maker Boston Beer Co. (SAM) also fell to a penny before recovering to $55.82.
Oxford Industries (OXM) tanked to $1.34 before soaring back to $19.51 a minute later.
But some other wild trades were not canceled by Nasdaq. For instance, Apple (AAPL, Fortune 500) traded down 22% to $199.25 before recovering, but those trades were upheld.
Most notably, Nasdaq did not cancel trades of Procter & Gamble (PG, Fortune 500) or 3M (MMM, Fortune 500), which momentarily fell 37% and 22%, respectively.”
Here is a list of the canceled stock trades, courtesy of Nasdaq: