Amaranth got cleared by its clearing house

DealBreaker.com

Turning Amaranth Lead Into Gold For JPMorgan and Citadel Today’s edition of Platt’s Energy Trader takes in depth look at how Citadel and JPMorgan took over Amaranth’s energy portfolio, turning Amaranth’s losses into profit. The basic outline of the story is that after gas prices sank and the spread between March 2007 and April 2007 natural gas futures shrank,



Amaranth found itself in the troubling position of having to sell off assets, in part to meet the margin calls of its broker, which happened to be JP Morgan. Citadel and JP Morgan then teamed up and bought the portfolio at a steep discount—a move that some at the time thought looked like a bailout of Amaranth.

As it turned out, Amaranth collapsed anyway. It’s energy trading desk was at the heart of its operations, and after the meltdown it had little hope of going on. And the “bailout” was anything but an act of charity or an LTCM-style attempt to shore up market stability. JPMorgan and Citadel had their eyes keenly on the prize—profits. In a matter of weeks, JPMorgan turned around and sold it’s half of the Amaranth position to Citadel, pocketing a cool $750 million.



It pays to take risks. When the bottom is hit there is only one way it will move the upward movement. Again the debate is who know when the bottom is hit.



Thanks Dealbreaker

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Private Equity Trickles into India, Wireless Eyed

I dont know whether this is the first PE. But this is the first Huge one I heard recently. I was wondering why in India there is Less PE deal. Indians and known for bargaining but I bet there is more undervalue properties in India than in any where in the world. In fact thats what I wanted to do when I go back. I am happy that people are realizing the potential and are able to leverage it. Any comments

The Wall Street Journal reports Blackstone Group and Texas Pacific Group are considering making an offer for Hutchison Telecommunications' Indian wireless firm Hutchison Essar, which is the third largest carrier in India. The newspaper cites people familiar with the matter who say a deal could exceed $8 billion, not including debt assumption. Hutchison Essar has more than doubled its subscribers in the past year to around 20 million. Warburg Pincus is said to have had a large stake in the two leading carriers, Reliance and Bharti Tele-Ventures. All parties declined to comment. According to Dealogic, there has been $38.8b worth of buyouts in Asia (including Japan and India) this year, with India accounting for $3.1b. Private-equity firms are awash in capital raised specifically for Asia, and are coming under increasing pressure to make deals.
* Sources: The Wall Street Journal
* Related commentary: The Rush For Indian Tech Stocks, Barclays and PowerShares To Offer India ETFs, Private Equity Buyouts: The Five Cs, The Private Equity ETF: A Look Under The Hood
* Potentially impacted stocks and ETFs: Hutchison Telecom Int'l (HTX)

Thanks Seeking Alpha for the news

Google and contents

Google and BSkyB Sign Search, Email, Video Deal - WSJ.com

The deal underlines both the growing value of Internet search-based advertising to media companies and Google's need to develop partnerships with content owners and distributors.

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Microlending Moguls

Micro Lending Moguls

Silicon Valley Moguls
Support Microlenders,
Just Not in the U.S.

6, 2006; Page B1

WSJ



This ought to be the perfect time to be Silicon Valley's biggest microlender, making small, business-oriented loans to poor people, the part of the population usually considered credit risks by banks. It's a popular subject today. Its most famous advocate, Muhammad Yunus, just won the Nobel Peace prize for his efforts in the rural villages of the developing world.

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Thanks Paul for linking to this article

Bloomberg.com: Exclusive Theil

PayPal's Thiel Scores 230 Percent Gain With Soros-Style Fund By Deepak Gopinath Dec. 4 (Bloomberg) -- One morning in 1998, at Hobee's coffee shop, near Stanford University, a young money manager named Peter Thiel decided to gamble on an Internet startup. Thiel ended up investing $240,000 in the company, which eventually became PayPal Inc., the giant of online payments. Thiel ran PayPal, took it public and, in 2002, sold it to EBay Inc. for $1.5 billion. Thiel, then 34, walked off with $60 million. He bought himself a Ferrari 360 Spyder and moved into a condo at the Four Seasons Hotel in San Francisco.

Even Gekkos 80- 20 rules shy apart, 2% owns 50

Richest 2% own over half of world's wealth

Richest 2% own over half of world's wealth








The richest two per cent of adults in the world own more than half of global household wealth, according to a study released on Tuesday.

In 2000 the richest one per cent of adults owned 40 per cent of global wealth, a report by the Helsinki-based World Institute for Development Economics Research of the United Nations University said.

Its comprehensive study of personal wealth has revealed that the richest 10 per cent of adults accounted for 85 per cent of the total global assets.

In contrast, the bottom half of the world adult population owned barely one per cent of global wealth. Average wealth amounted to $144,000 per person in the USA in year 2000, and $181,000 in Japan.

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Googles success and amazing co-incidents

Shuzak.com | Coincidences that made Google successful

Over 25 years ago, IBM's *accidental* visit to Microsoft ultimately ended up making Bill Gates the richest person in the world [1]. Was luck the only reason attributed to his success? No way. Though without it, Bill Gates might have been working for Apple today. I have a theory; for something to be successful a large series of coincidences must sum up exactly right...at least, such was the case with companies such as Microsoft and Google. In that regard, the difference between Microsoft and Google is that Microsoft's luck ran out while Google's luck continued to flourish. Indeed, God worked in mysterious ways for Google; ever since its emergence in 1998, Google has repeatedly scored high on luck [2]. That is not to say that Google didn't deserve its dramatic rise to success; on the contrary, a successful company seeks out opportunities. Taking advantage of an opportunity means recognizing that there is an opportunity to take advantage of. For the purpose of this article, I will reveal a few unpredictable events that led Google on its road to riches but were, more or less, a coincidence.

Had few of the following events not occurred, Google would probably not have existed today.

Google's Coincidental Success:

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