Is It Safe Yet(by Sophia)

11/3/2008
p.026
Barclays President Bob Diamond, Bar Cap in Europe ask the opinion of not M&A Leman(bond player-catastrophe bonds)
p030.
1. 1985, Drexel Burnham –junk bonds; 1986, S&L cresis intensifies; 1989, Glass Steagall Act eliminate the restriction between commercial and investment bank; 1994 hedge funds. 1998 Long Term Capital Management Models(LTCM); 2000 , doc.com bubble bursts, 2006, subprime mortgages, housing bubble, 2007, Bear Stearns, 2008, Lehman Brothers.
2. Regulation/deregulation( ideology of economics in University of Chicago) /Wall Street lobbyist
3. Too big to fail, but also too big to rescue.
4. tycoon大亨
p.034 more pain ahead
1. Watchful eye of regulations
2. How bad things will get from here depends on how cleanly the losing firms and toxic investments can be extricated form the rest.
3. CDOs Credit default SWAP(default,1. set A and will show B)
4. Merrill/AIG/European banks
p. 044 Beyond the street
1. SanFrancisco- American Conservatory Theater, ticket price drop and lay off, Starwood Hotels and Resorts Worldwide
2. Leman’s biggest partner-NorthMarq Capital- a commercial real estate banker in Minneapolis, and AIG’s
3. Auto industry
4. Roger Berkowitz-restaurant chain of Sea food
5. So bad until 2010
P.046 sovereign funds: twice shy (once shot, twice shy)
1. Financial folly, plow nearly $60 billion
2. the investment in banks and brokerages haven’t turned out to be a great deal.
p. 048 Russian stocks in free fall
p. 050 A chance to find balance
1. The turmoil won’t be end until there sectors pare down their debit.
2. State and local gov. still have room to borrow because they didn’t leverage up as much as households and financial institutions did. The resulting retreat in housing and consumption will leave more resource to devote to building real wealth for the future, including spending on education and research and development. (review the emphasis and adjust for inflation did not add much debit so still has power of borrowing)
p.068 green power buyers beware
utilities
premium
did not foster renewable energy/power but spending on marketing and administration fee
p. 088
1. rip vedio c.f. illegal ripped copies
2. content scramble system(CSS)
3. RealDVD $30 share up to 5 in all as long as they have their own copy of Real DVD $20
4. Impose restrictions doesn’t get us there, but this move us in the right direction.
P. 0.56 how the rate the power of interbrands1.
1. methodology
1). It must derive a third of its earning outside its home country
2). It must have publicly available marketing and financial data.
3). Eliminated heavy weight, or portfolios of brands, like Wart-Mart, P&G
2. Steps
1. Sales falls 5 years
2. Earning results from the power of the brand
3. Interbrand discounts against current interest rates and overall risk profile