Lifestyles Of The No Longer Rich And Never Very Famous: New York Magazine published a cringe-worthy story about whiny bankers who won’t be getting their bonuses this year. It’s not helping the whole PR battle against Wall Street right now-why not cover the out-of-work bankers who are having one hell of a time trying to find a new job? Dealbook has a summary.
Dear Chrysler, Head To Delaware: Or so that’s why Peter Morici, a business professor, thinks is the best option for the Cerberus-backed auto maker, ruling out a merger with GM. However, a Chapter 11 move would wipe out Cerberus’ 81% stake, something I highly doubt the turnaround firm would readily agree to.
AHA!: I knew it. Henry Kravis finally admitted that private equity got his returns through quick flips and dividend recaps. Dan has already covered these speeches of guilt admission, but I wanted to point out that I desperately hope this sentiment trickles down to the middle market. The phrase “value-add” is such a cliché, regardless of whether or not its true. At least someone isn’t trying to spin us.
Meanwhile: Reuters outlines in greater depth the possibility of bankers apologizing to “main street” and employees as a way to re-gain trust and respect. It wouldn’t hurt. Hey, it might make visits to the gym safer for Dick Fuld (just kidding, that punch looks like it was an unsubstantiated rumour).
Spread Too Thin: Paul Kedrosky’s favorite email response from an economist overwhelmed by media requests. My favorite was on the voicemail of a press person who said, “Because of the heightened demand related to the economic crisis, my voicemail is programmed to switch to this message after every 100 voicemails. Please send me an email.” Read the Infectious Greed favorite here.
Defense Targets: What the presidential election means for the defense industry. Seems logical to conclude “consolidation,” especially since I can guess that defense spending will slow down no matter who gets elected, and not because of the election, but because of the economy. Mergermarket suggests wartime supplemental companies will come into the limelight as targets, and not the attractive kind.
Unrelated But Cool: An Atlas of the World in terms of the way we live. It depicts countries sized by immigration, tourism, travel, wealth trends, housing prices, HIV, alcohol consumption, nuclear weapon ownership, and war-related deaths, and carbon dioxide emissions.