“Investment Banks lend as if they had balance sheets”
—Robert Diamond – President of Barclays
Lehman listed liabilities of $613 billion and assets of $639 billion
Barclays buys Lehman’s core capital markets businesses for $1.75 billion
- The deal includes Lehman’s Midtown Manhattan headquarters building and two data centers, which accounts for $1.5 billion of the deal’s value
- To be approved by a judge overseeing Lehman’s bankruptcy proceedings.
- Barclays is expected to raise $1 billion in equity to support the deal
“God Save the Queen” blared over the loudspeaker
“A yearlong credit squeeze culminated in the past two weeks with the bankruptcy of Lehman Brothers and the bailout out of Fannie Mae, Freddie Mac and American International Group Inc.”
intransitive verb
1. of a celestial body : to reach its highest altitude ; also : to be directly overhead.2. a: to rise to or form a summit b: to reach the highest or a climactic or decisive point
transitive verb: to bring to a head or to the highest point
For global business confidence to improve two things are needed: the U.S. housing market to bottom out and a sign that the financial turmoil is nearing an end. That won’t be until around the second quarter in 2009.
—Masamichi Adachi, a senior economist at JPMorgan Chase & Co. in Tokyo
It’s basically a disaster for tri-state real estate. Financial companies drive this region. Clearly of all the markets in New Jersey, Jersey City is the most dependent on New York City and the financial arena.
—Andy Merin, vice chairman at Cushman & Wakefield in East Rutherford, New Jersey.
Clearly all of the signals are disconcerting, but it’s going to take time to play out.
—Rosemarie McFadden, deputy mayor for economic development, Jersey City.
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Square Feet: Jersey City’s Hudson River waterfront has 17 million square feet (5.2 million square meters), more than in downtown Atlanta or Pittsburgh, according to the city’s economic development agency.
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Vacancy: 18% four years ago, 7% today
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Price Per Square Foot: $33 a square foot
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Current Revenue: $522mm, given occupancy and average $ per square foot
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Median Household Income – Jersey City: up 19% percent in 2007 from 2006, compared to 4% increase in the state average income
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Exposure: Merrill has 1,600 workers; Lehman has 1,500; AIG has about 200.
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@ 50 square feet per a person, that equals 165k square feet, which is 1% of the total available square feet
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Until the financial sector sorts itself out the economy is never going to resume normal growth,” said Ken Rogoff, former chief economist at the International Monetary Fund and now a Harvard University professor.
The federal funds rate hit 6% on Monday, triple the Fed’s target. The Fed pumped $70b into money markets through repurchase operations, the most since September 2001
The annual cost of insuring $10 million of AIG debt for five years rose to $1.9 million yesterday, equaling 19 percent of face value, according to CMA Datavision prices.
The idea that “the people” will take on and destroy “the establishment” is a utopian fantasy that corrupted the left before it corrupted the right.
…
Democracy is not average people selecting average leaders. It is average people with the wisdom to select the best prepared.
“The inflation outlook is now much less of a concern,” said Paul Ashworth, international economist at Capital Economics Ltd. in London. At the same time, “the weakness in the real economy is intensifying.”
Bloomberg Survey
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Release Period Prior Median
Indicator Date Value Forecast
================================================================
Empire Manu. Index 9/15 Sept. 2.8 1.0
Ind. Prod. MOM% 9/15 Aug. 0.2% -0.3%
Cap. Util. % 9/15 Aug. 79.9% 79.6%
CPI MOM% 9/16 Aug. 0.8% -0.1%
Core CPI MOM% 9/16 Aug. 0.3% 0.2%
CPI YOY% 9/16 Aug. 5.6% 5.5%
Core CPI YOY% 9/16 Aug. 2.5% 2.6%
Core CPI SA Index 9/16 Aug. 216.230 n/a
CPI NSA Index 9/16 Aug. 219.964 219.340
Net Long Term TICS $ Bl 9/16 July 53.4 55.0
Total TICS $ Blns 9/16 July 51.1 40.0
NAHB Housing Index 9/16 Sept. 16 17
ABC Conf Index 9/16 Sept. 15 -47 -43
Housing Starts ,000's 9/17 Aug. 965 950
Building Permits ,000's 9/17 Aug. 937 925
Current Account $ Blns 9/17 2Q -176.4 -180.0
Initial Claims ,000's 9/18 Sept. 6 445 440
Cont. Claims ,000's 9/18 Aug. 30 3525 3528
Philly Fed Index 9/18 Sept. -12.7 -10.0
LEI MOM% 9/18 Aug. -0.7% -0.2%
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