How Did Lehman Delever?

Naked Capitalism looks at the question "Just How Did Lehman Delever?"

I tracked Lehman’s (LEH) stock action before and afterwards — I don’t pay much attention to conference calls, as I have this regrettable tendency to believe what CEOs and CFOs say to me, most often to my financial detriment. Over the years, I’ve learned to skim the results of the calls, but pay close attention to the stock action.

My sense is the LEH buyers are doubling down, throwing good money after the bad of the $28 convert. Despite enthusiastic buying, the true believers could not get back over the syndicate price. 

Which brings us back to Naked Capitalism. Yves has an email from a former Lehman managing director, and its worth reading, if not for the answers but for the questions they raise, about Lehman’s balance sheet exposures, land holdings, and rising compensation expenses during a time of 1,900 layoffs.

In theory, the 10Q should clear some of this up . . .

Category: Credit, Derivatives, Earnings, Valuation

GS’s Jan Hatzius on Fed Rates, Inflation & Jawboning

The Fed is putting the spotlight back on inflation concerns:

click for video
Jan_hatzius_gs

Category: Federal Reserve, Fixed Income/Interest Rates, Inflation, Video

Stocks: Negative Return Due to Inflation

Category: Commodities, Earnings, Valuation

Robert Novak is No Fed Expert !

Category: Federal Reserve, Financial Press

Crude Oil = $140

Category: Commodities, Energy, Technical Analysis

Metals Conference: Currency, Fed policy, and Debt

Category: Commodities, Credit, Currency, Federal Reserve

Washington Post: Boom, Bust & Aftermath Part II

Anatomy_meltdown_wallst

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Part II of the WaPo Real Estate & Credit series we mentioned yesterday is out today. A few excerpts after the jump will give you a flavor of the article.

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Source:
The Bubble
Zachary A. Goldfarb and Alec Klein
Washington Post,  Monday, June 16, 2008; Page A01   html
http://www.washingtonpost.com/wp-dyn/content/story/2008/06/16/ST2008061600096.html

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Category: Credit, Derivatives, Federal Reserve, Real Estate

UK Cost of Living Increases: 9.5%

Category: Inflation

Roubini: ‘Long and Protracted’ Recession

Nouriel Roubini, professor of economics at New York University’s Stern
School of Business, talks about May retail sales, Federal Reserve
policy and the outlook for the U.S. economy. Retail sales in the U.S.
rose twice as much as forecast in May, with purchases climbing 1
percent, the most in six months, the Commerce Department said.

click for video
Nouriel_roubini

00:00 Prospects for weaker consumer in autumn
02:05 Fed to hold despite "hawkish" rhetoric
03:22 "Very pessimistic" about housing
04:32 Could be "long and protracted" recession
05:34 GDP to fall for four quarters

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Source:

Roubini of NYU Sees ‘Long and Protracted’ U.S. Recession: Video
Bloomberg,
June 12, 2008
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a3myVRRgXVSY

Category: Economy, Video

Washington Post: Boom, Bust & Aftermath

Category: Credit, Derivatives, Financial Press, Real Estate