Wednesday links: bonus blowback

18Mar09

The “firestorm” over AIG is going to make other firms wary of going into business with the Feds.  (WashingtonPost.com, Atlantic Business)

From the bad PR file.  Hedge funds+AIG cash=Trouble.  (WSJ.com)

Why AIG was not allowed to fail.  In short, systemic risk.  (Market Movers)

The news coming from AIG should not be a surprise.  (Zero Hedge, Econbrowser)

The bonus issue, including paying former employees, to fix their own mess may be the tipping point for the bank issue.  (Baseline Scenario, NYTimes.com, Big Picture)

General Motors (GM) takes a page from the AIG playbook.  (24/7 Wall St.)

Why do people forecast (and trade)?  Because it is fun.  (Crossing Wall Street, Clusterstock)

Why hasn’t Warren Buffett been more vocal on the role the rating agencies played in the current crisis?  (NYTimes.com)

“What defines a sucker rally is simply a matter of perspective, and, more importantly, when investors buy and sell.”  (24/7 Wall St. also FT Alphaville)

Has the VIX found a new floor around 40?  (MarketBeat)

If you want to stop purported “bear raids” you have to do more than mess with the uptick rule.  (Daily Options Report)

John Paulson gets long gold in a big way.  (Clusterstock, FT Alphaville)

Is the yen-carry trade back?  (greenfaucet.com)

Given this performance is David Swensen’s advice still worth following?  (BusinessWeek.com)

Hedge funds begin ungating their funds allowing investors to receive cash.  (FT.com)

The alpha on merger arbitrage is declining, and likely is not coming back any time soon.  (All About Alpha)

April 15th approaches, some ETF tax questions answered.  (Morningstar.com)

Using Morningstar fund ratings to avoid the worst performing funds.  (CXO Advisory Group)

Money market mutual funds revamp in order to reduce risk and avoid breaking the buck.  (NYTimes.com also Market Movers)

Goldman Sachs (GS) wants to shift the focus of one its private equity funds to distressed debt.  (peHUB.com)

Has ‘Peak Oil‘ already occurred?  (FT Alphaville)

The “commodity rebate” experienced by American consumers seems to have played itself out.  (Bespoke)

For the Fed, “Not only would forcing Treasury yields lower be impactful, it would also easier to achieve.”  (Accrued Interest)

AIG is a prime example of why it will take a long time and a lot of work to fix the economy.  (Clusterstock, ibid)

More signs of life in the economy.  (Infectious Greed)

The suburban mall is on its last legs.  (The Daily Beast)

The long knives are out for Tim Geithner.  (Clusterstock, Infectious Greed, FT.com, Bespoke)

Foreign demand for long term Treasury bonds is down, but the Chinese are not to blame.  (Brad Setser, EconomPic Data)

“In summary, the word bonus is going to be a loaded term going forward and it is going to be harder for boards of all kinds to put in place bonus plans for management.”  (A VC)

“Buy Howard Lindzon’s book if you like money.”  (AlphaTrends)

The new Yankee Stadium is the end of an era for lavish public-private stadiums.  (Portfolio.com)

Zero Beta is back just in time for March Madness.  “Pricing tickets is very, very hard.”  (Zero Beta)

Act like a hedge fund manager to win your office pool.  (Slate.com)

Speaking of pools, time is running out to join the first (and only) Abnormal Options Bracket Challenge.  (Abnormal Returns)

iPhone software just got a lot more useful.  (Silicon Alley Insider, Bits, Gizmodo)

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