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• The Fed's new role: Sugar daddy

  Posted Sep 16 2008, 03:15 PM by Andrew Horowitz
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  Filed under: Merrill Lynch, Lehman Bros, Andrew Horowitz, AIG, Fannie Mae, Freddie Mac
  Money Blog: Top Stocks Blog - MSN Money

  Since when do we rely on government to intervene in every case of a failing business? If anyone wonders why we have such a mess on our hands, look no further than our boneheaded government that has obviously forgotten its way.  Think of this week's action within the financial markets as a result, not the cause of our problems.

  AIG is in a battle for its very existence, Merrill has been absorbed and Lehman is bankrupt. And we're only part way through the week. What's next?

  These days, many people are wondering what our government will do to stop the insanity. Yet, in a capitalistic society that relies on a free market system, we should only look to the government to guide and regulate against fraud and the manipulation of the system. Sometimes known as a laissez-faire philosophy, the government has a role, but it   Read More...

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• Lehman's PR playbook is obviously broken

  Posted Aug 19 2008, 10:45 PM by Andrew Horowitz
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  Filed under: Lehman Bros, Andrew Horowitz
  Money Blog: Top Stocks Blog - MSN Money

  It has been a tough time for shareholders that remain invested in financials and in particular,  Lehman Brothers remains in the cross-fire. The main problem continues to be the company's cavalier attitude and total disregard for their shareholder's net worth. 

  Unfortunately, the latest finding estimates another $4 billion of potential write-downs for the quarter and is just one more in the long list of the obscene losses plaguing this once respected company. Aside from the obvious financial problems, Lehman has a continuing PR debacle created out of an obstinate attitude and a general feeling of indestructibility. At this point, I can't decide if it is either a case of a total disconnect from reality or the notion that they have a guardian angel promising a safety net. Why else would they continue to be so reckless with their announcement and why would they be so insistent on hiding the real story from shareholders?   Read More...

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• Lehman's private letter to clients

  Posted Jun 13 2008, 07:46 AM by Andrew Horowitz
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  Filed under: Lehman Bros, Andrew Horowitz
  Money Blog: Top Stocks Blog - MSN Money

  Lehman Brothers sent another "feel-good" letter to their clients that hold positions in Lehman sponsored partnerships. This isn't the first of these smokescreens that Lehman published in an attempt to take our eyes off of the real problems.  Is it me or is it terribly concerning how gullible many of these companies believe that we are? I still have not hear an apology for the blatant and disrespectful lies misinformation that was promoted by the overzealous PR team over at Lehman HQ.

  Below is the June 11 letter and my comments....

  LEHMAN BROTHERS
  399 PARK AVENUE, NEW YORK NY 10022 TELEPHONE (212) 526-0977 FACSIMILE (646) 758-4269
  MICHAEL J. ODRICH,  MANAGING DIRECTOR, HEAD OF PRIVATE EQUITY
  

  Dear Partner:

  As the second quarter comes to a close, financial markets remain under stress. Actions taken by the Federal Reserve have provided additional stability for capital markets, although the operatin   Read More...

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• Waddle be next for the Financials?

  Posted Jun 02 2008, 04:32 PM by Andrew Horowitz
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  Filed under: Merrill Lynch, Morgan Stanley, Lehman Bros, JPMorgan, credit crisis, Andrew Horowitz
  Money Blog: Top Stocks Blog - MSN Money

  What took them so long? S&P finally trimmed their outlook on Lehman Brothers Corp and other key financials today. It has become clear that the problems facing the financial sector is far from over. Financial stocks and the markets in general were hit hard as investors were spooked after S&P announced that they would be lowering ratings and their outlook on these companies. Is this any surprise to anyone?

  So now, the long term ratings on these three went from A+ to A and the short term rating went to A-1. The concerns seem to be focussing in on residential mortgage loans and residential construction slow downs. Timely, hey?

  According to the S&P release shown below, “The downgrade primarily reflects our concern that the pace and extent of earnings improvement could be considerably more muted than we previously assumed.” And "muted" is codeword for....?   Read More...

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