Thursday, November 20, 2008

How Internet can value to you - Connect from Seth Godin

Seth's Blog: How to make money using the Internet
# Connect advertisers to people who want to be advertised to.
# Connect job hunters with jobs.
# Connect information seekers with information.
# Connect teams to each other.
# Connect those seeking similar.
# Connect to partners and those that can leverage your work.
# Connect people who are proximate geographically.
# Connect organizations spending money with ways to save money.
# Connect like-minded people into a movement.
# Connect people buying with people who are selling.

Wednesday, November 19, 2008

John Paulson on why he like sub prime

Excellent timing: Face to Face with John Paulson - Pensions & Investments
The beauty of shorting a bond is that the maximum you can lose is the spread over the benchmark; yet if the bond defaults, you can potentially make more. So it’s an asymmetrical risk-return tradeoff. In the case of subprime securities, we targeted the triple-B bonds, which are the lowest tranches in the subprime securitization.

In a typical securitization, you have 18 to 20 different tranches with the lowest … taking the first loss. The triple-B bond has about 5% subordination, meaning that if the loss is greater than 5%, the bond will be impaired. And if it’s more than 6%, the bond will be extinguished. The yield was only 1% over LIBOR (the London interbank offered rate) so by shorting this particular bond, if I was wrong, I could lose 1%, but if I was right, I could make 100%. The downside was very limited but it had very substantial upside, and we like those types of investments

Tuesday, November 18, 2008

Sunday, November 16, 2008

China Business Etiquette and more

3 Ways to Kill a Deal in China - Entering the Chinese Market -
General Behavior

1. Keep hand gestures at a minimum. These can be distracting because Chinese rarely use body gestures while speaking.
2. Keep personal contact at a minimum--including hugging, slapping shoulders, etc., especially between a man and a woman. Shaking hands is OK.
3. Dress conservatively. Women shouldn't wear ultra-high heels.
4. In conversation, steer away from politics. If pressed for an opinion on a political or controversial issue, express your personal opinion, but acknowledge that it's not the viewpoint of the entire company.

Saturday, November 15, 2008

7 reasons for current financial crisis

Reason for current Financial crisis - Ref: Neel Kashkari -
I know many of you have been wondering what are the reasons for credit crunch,
These are the 7 major reasons

Reasons for Financial Crisis aka Credit Crunch
No 7 being the most important.

1) Decade of benign economic condition resulting in low inflation & Low interest rates
2) Financial innovation acceleration
3) Investors increase in confidence to diversify and distribute risks
4) Exceeded leverage on financial systems
5) Weakened underwriting mortgage standard
6) Little or no down payment and no documentation
7) Regulators, Investors and Home owners think home prices can only go up

Please pass your comments and is welcome to share

Neel Kashkari - Interim Assistant Secretary of the Treasury for Financial Stability @ Wharton Financial Conference

Manhattan real estate recent price changes

» Where the Prices Are Dropping | BankersBall. Where Investment Bankers Come to Party. Investment Banking Compensation & Salary
- Harlem and East Harlem down by nearly 20% (to $440,000).
- Midtown East and Turtle Bay down by 18.6% (to $1.197MM)
- Midtown West and Hell’s Kitchen dropped 8% (to $1.01MM)
- Lower East Side and the East Village, prices dropped 5.5%
- Carnegie Hill, prices down 7.2% (co-ops)
- Hamilton Heights and Morningside Heights down by 30%
- Washington Heights prices down 6.3%

- Upper East Side (Fifth Avenue and Park Avenue from 59th to 96th Streets) prices up by 35%
- Rest of UES co-op prices up 2.3%; condos up 9.1%
- Lincoln Square co-op prices up by 18.6%; condo prices up by 25%
- Lenox Hill co-op prices up by 19%
- Chelsea, co-op & condo prices up by 6%
- Greenwich Village, co-op prices up by 3.9%
- Union Square & Gramercy co-op prices up by 3.3% and condo prices up by 2.6%
- Battery Park City prices up by 6.5%

The entrepreneur is the customer and the LP is the shareholder.

The VC's Customer
The VC's Customer. The entrepreneur is the customer and the LP is the shareholder.
by Fred Wilson.

Thursday, November 13, 2008

Underwater Car Loan BailOut ?

I met few millionaires and none of them I know had brought new cars. People dont get rich just by making money, but also spending it carefully than they earn.

Underwater Car Loan BailOut ? « blog maverick
You all do realize that anyone who buys a new car is UNDERWATER the minute you sign the papers and drive off the lot ? That you get further and further underwater every single day ? Maybe thats why so few are buying new cars ? We havent instituted a bailout for their underwater car loans.

Hedge Fund and leverage

Paul Kedrosky: Hedge Fund Leverage, Then and Now
Hedge Fund Leverage, Then and Now

A nice chart (from MIT’s Andrew Lo) of the growth of assets and hedge fund leverage over the last 20 years. You can plainly see the expanding leverage in the 2001-2005 period.


Wednesday, November 12, 2008

12 Killer Ways to Make Extra Income On the Web

SitePoint » 12 Killer Ways to Make Extra Income On the Web
12 Killer Ways to Make Extra Income On the Web

Tuesday, November 11, 2008

End of Wall Street by Michael Lewis

The End of Wall Street's Boom - National Business News -
The era that defined Wall Street is finally, officially over. Michael Lewis, who chronicled its excess in Liar’s Poker, returns to his old haunt to figure out what went wrong.
Fallen bull statue in Wall Street.

C Corporation vs S Corporation vs LLC

C Corporation vs S Corporation vs LLC
Sole Proprietorship vs. C Corporation vs. S Corporation vs. LLC.

Friday, November 07, 2008

Amazing business chasing story

“Single?” Lawn Signs Conquer the American Landscape « The Metric System
Single?” Lawn Signs Conquer the American Landscape