September 2009
28 posts
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Crowding In and Crowding Out
I heard often about increased government spending leading to “crowding out”, or private sector losing its battle against public sector in the competition to borrow money from savers. There’s also a counter-acting force of “crowding in”, where private investment is fostered by a government deficit-induced growth in demand.
The actual situation will depend on the...
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Money Supply Is Indeed Just Going Down
Even looking at money supply figures, there’s nothing else than signals of deflation ahead. As Ambrose Evans-Pritchard points out in his article, money supply is decreasing rapidly.
M3 money has been falling at a 5pc rate; M2 fell by 12pc in August; the Commercial Paper market has shrunk from $1.6 trillion to $1.2 trillion since late May; the Monetary Multiplier at the St Louis Fed is...
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Global Economy Matters: How Will The ECB Ever... →
Interesting post on ECB vs Spanish Debt
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“Why do we care to write about this? Actually deals like Zimbra is why we never...”
– The Real Cost of Acquisitions: the Zimbra Story | Zoho Blogs
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“Since the beginning of the recession, the Fed has expanded base money supply...”
– Mish’s Global Economic Trend Analysis
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The Mother Of All Private Equity Returns...
Surprisingly, I missed this AIM Program Fund Performance sheet released by CalPers.
It lists all commitments, investments, distributions, IRR and cash multiple of over 600 alternative investment funds CalPers invests in, directly or indirectly through funds of funds.
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“So I would take some of the pressure off and think about what I wanted to do,...”
– Career advice by Goldman Sachs CEO via Corner Office - At Goldman Sachs, Blankfein’s Lessons Learned in the Crisis - Question - NYTimes.com
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“Banks across Europe have insisted in recent months any decline in lending is due...”
– Bank loans and corporate bond issuance keep falling. Is it a supply or demand issue?
via FT.com / Brussels / Economy - Lending in Europe continues to shrink
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“Today Lehman’s senior debt trades at a mere 10 cents on the dollar, suggesting...”
– Economic Donkeys « The Baseline Scenario
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“So: Do you go through a long period of austerity with slow growth, high...”
– Overcoming America’s Debt Overhang: The Case for Inflation | The New America Foundation
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“To me, that’s the big news from the Census Bureau’s annual report on income,...”
– A Decade With No Income Gains - Economix Blog - NYTimes.com
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Excess Liquidity Game Is Coming To An End | zero... →
Shocker: Money Supply is actually going down
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“The Chinese Ministry of Finance said Tuesday that it would issue 6 billion yuan...”
– China to Sell Government Yuan Bonds in Hong Kong - DealBook Blog - NYTimes.com
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Are MBAs Necessary for Start-ups or VC? →
Fair analysis of the value proposition of an MBA.
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How to Kill a Great Idea | Beyond Freelancing →
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How Did Economists Get It So Wrong? →
Good overview of the history of macroeconomic theories in light of current and past recessions by Paul Krugman.
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Private equity-backed Capmark Finance Group to... →
Trouble continues in commercial real estate.
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MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES →
Detail of foreign US treasury ownership. China biggest holder, but Japan and UK biggest buyer in 2009.
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“Be human. Stop hiding. Be yourself.”
– Jason Cohen on startups and the importance of early adopters as their main target at You’re a little company, now act like one - Blog - Startups + Marketing + Geekery
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“Our entire monetary system, and by extension our economy, is a Ponzi economy in...”
– Outstanding post by Chris Martenson on public debt monetization and its impact on the dollar, inflation and interest rates at Central Banks - The Shell Game - How the Federal Reserve is Monetizing Debt - Aug. 2, 2009 | Martenson Reports at Chris Martenson - Central Banks, Federal Reserve, Martenson...
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Ebay Sold Skype At $2.75 Billion Valuation
Ebay sold Skype at a valuation of $2.75 billion. That’s a hefty 17.6x EV/EBITDA multiple on EBITDA 2010E of $156 million. I wonder if investors led by Silver Lake Capital were able to finance part of the deal with acquisition debt, but the offer was reportedly not subject to financing.
Ebay originally bought skype $3.1 billion (including earn-out) and later wrote it down to $1.7 billion....
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August 2009
29 posts
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“As I wrote in August 2000 and August 2006, I write again in August 2009: there...”
– John Mauldin - An Uncomfortable Choice | The Big Picture