dcollon

SAC’s Parameter Trading Unit Is Said to Close Amid Probe http://www.bloomberg.com/news/2013-08-12/sac-s-parameter-trading-unit-is-said-to-close-amid-probe.html

Latest from Mr. Gross http://www.pimco.com/EN/Insights/Pages/Bond-Wars.aspx

http://www.bloomberg.com/news/2013-08-05/hidden-billionaire-cohen-hauls-fortune-in-unmarked-trucks.html

[amazonsearch]The King of Oil: The Secret Lives of Marc Rich[/amazonsearch] I recently read this book about Marc Rich and really enjoyed it. I want to point out that I'm not saying he is a good or bad person or his business interests were good or bad. Simply, I liked the book.

Ghostbusting Bad Bank Summoning Cranes Back to Dublin from: Bloomberg http://www.bloomberg.com/news/2013-07-25/ghostbusting-bad-bank-summoning-cranes-back-to-dublin.html

From Barron's Fannie_Mae_Freddie_Mac_Will_Fade_Away_-_Barrons.pdf

Margin Debt Raising Red Flags Research from DB attached and worth reading. Review_of_Margin_Debt_Levels.pdf

From FT (see attached) Berkshire_is_Foolish_with_Aon_Deal.pdf

Just one person’s view, but here you go… From Mark Grant at Southwest Securities When the bank depositors money was confiscated in the Cyprus bailout we all wondered, and rightfully so, if this was to be the template for bail-ins in the European Union. Cyprus marked a decided shift in policy for Europe. The days of using taxpayer money had come to an end and a new era had begun. The game had changed. In considering the bankruptcy for Detroit I wonder if we have not reached a shift in policy in the United States and what it might mean for the Municipal bond market. A Federal Judge has now ruled that the filing is valid and that the Chapter 9 proceeding is legitimate and will be decided on in Federal court. So here is the first piece of the template; municipal bankruptcies will be a matter of Federal law and not state law. The current plan, not accepted by anyone yet, means a 90% loss for Detroit municipal retirees, an 81% loss for unsecured creditors, and a 75% loss for secured creditors. No joy in Mudville for any camp here. There will be the normal bickering, shouting and hand waving as everyone fights over what little money is left. What also is becoming clear, and long a speculation about Municipal bond bankruptcies, is that neither the County or the State or the Federal government has any intention of helping Detroit through this process. It is becoming quite clear that the city is being left on a stand-alone basis. Sen. Lindsey Graham, R-S.C., has introduced an amendment to ban the Federal government from bailing out Detroit or any other municipalities. "There is no doubt Detroit has huge problems, but they are facing problems of their own making," Graham says in e-mailed statement. Graham's amendment to the Treasury Budget Bill would ban using Federal funds to buy or guarantee any asset from any municipal, local or county governments facing default. The measure also would prohibit the Federal government from issuing lines of credit or giving any financial help to avert bankruptcy. In other words no money or any sort of guarantee for "debtor in possession" financing. This then raises several delicate questions about how Detroit, or any other municipality, is going to exit from bankruptcy if no bond seniority is available or can be granted. What I think can be said here is that the risk of owning Municipal bonds has just risen by a significant measure and that a new appreciation for the risks associated with Munis must be considered and accounted for in the spreads of Munis to other types of bonds. If a city is going to be disassociated from a State and if a State is not going to be supported by the Federal government then the old suppositions that have long been a part of the Municipal bond market must be re-examined. The bond issues are just the normal fighting about money ones. The pension issues though may raise problems of a more difficult sort. If the municipal works are going to lose a large part of their pensions then you may expect a significant hue and cry in both the State and Federal legislatures. It may be that eventually each State oversees the municipal pensions in their State in a manner which has not been found before. This would result in all kinds of new regulations and oversight that are not in place currently. Also if the Federal government would decide to guarantee in some form municipal pensions then large liabilities would be added to the Federal deficit. However this plays out I think it is a reasonable assumption that the regulations for Municipalities and their pension obligations will not be what has been found in the past.

SAC Capital Advisors Indicted by Federal Grand Jury in New York http://www.bloomberg.com/news/2013-07-25/sac-capital-advisors-indicted-by-federal-grand-jury-in-new-york.html

http://www.newyorker.com/reporting/2013/07/29/130729fa_fact_gawande?currentPage=all

New commentary from GMO (Inker & Montier) GMO_QtlyLetter_ALL_2Q2013.pdf

http://blogs.wsj.com/moneybeat/2013/07/21/investors-struggle-with-cash-conundrum/

Thanks for posting the link.

Albert Edwards latest Albert_Edwards.pdf

Gio, I will try to find out the timing and let you know.

http://www.bloomberg.com/news/2013-07-15/loeb-s-third-point-reinsurance-files-for-250-million-ipo-1-.html

From Zero Hedge: http://www.zerohedge.com/news/2013-07-11/complete-2013-year-date-hedge-fund-performance

G2, I'm not involved with the space, but there is some good discussion in this thread http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/gold-miners/msg111662/#msg111662. I have a ton of respect for Mr. Klarman, but thought I should post the article since I like to read anything I can find about him and Baupost. Yours Truly, you are absolutely right. It's a small position/loss since the author stated that Baupost's aum is $28 bil (not sure if that is still right or not).

http://www.forbes.com/sites/nathanvardi/2013/07/10/seth-klarmans-baupost-hedge-fund-loses-more-than-150-million-on-gold-miners/

Mark Hanson had some interesting comments on this topic just a few days ago. Here is the link http://mhanson.com/archives/1329

Albert Edwards: Is the Ice Age Over? Is_The_Ice_Age_Over.PDF

They are doing just fine. They setup a new firm and are still working hard. www.boylesasset.com

Senators to Introduce Bill to End Fannie Mae, Freddie Mac (bloomberg) http://www.bloomberg.com/news/2013-06-24/senators-to-introduce-bill-to-end-fannie-mae-freddie-mac.html

A little levity for the macro board