Betting Against the American Dream
. In 2005, just as Wall Street started to get cold feet about the housing market, the Magnetar
hedge fund helped create a new wave of billion-dollar mortgage-backed securities, pushed bankers to include riskier sub-prime mortgages, and then shorted the securities, making millions when the bubble finally burst. Traders on both sides of the deals pocketed enormous fees even if their banks went under when the securities failed. Pulitzer Prize-winning ProPublica
, This American Life
, and NPR's Planet Money
track down some of the big winners in the housing/financial crisis. No time to read or listen? It seemed so much like a scheme from The Producers
, they even recorded a show tune to explain it all
posted by straight
on Apr 15, 2010 -
Record Labels' Answer to Napster Still Has Artists Feeling Bypassed (NY Times).
Well, it seems the shoe's on the other foot now. Some artists are learning that the industry alternative (Pressplay, MusicNet) to free music downloading services isn't paying quite the dividends they'd expected.
"Last December, the major record labels responded with two Internet services of their own where fans pay monthly fees to download songs. Under this arrangement, however, the performers still don't get a dime: for each song downloaded, they stand to get only a fraction of a cent, according to the calculations of disgruntled managers and lawyers.
And, artists and their managers say, the labels, like Napster, aren't putting the music online with proper permission either.
Can't say I have a lot of sympathy for any
of the principals involved. What is especially amusing (but not surprising) is the apparent duplicity of the labels: "in comments not for attribution, several executives at labels and their subscription services did not dispute the accusations regarding the payment plan. They said their first priority was to make the services attractive to consumers and that the details of compensation could be worked out afterward."
posted by topolino
on Feb 18, 2002 -
Fake profits are causing the stock market to descend. Could someone explain to me the meaningful difference between Enron and Amazon.com?
One company recently reported fake profits of $5 million, while having billions in debt. Enron, well...no profits either, and billions in debt. So why is Amazon.com considered "promising"? Enron had a revenue stream too.... Prediction: Amazon.com's stock will be "revalued" sharply lower as people get lucid about real profits and as the accounting/profit scandals spread.
posted by ParisParamus
on Feb 4, 2002 -
could possibly be Schadenfreude
at it's best!! "eToys Expects Lower Than Estimated Fiscal Third Quarter Operating Results"
Net sales are expected to be between $120 million and $130 million, rather than the $210 million to $240 million previously estimated. How could they be off their estimate by HALF? Oh yeah, maybe if they hadn't spent so much time (and money) pursuing ETOY
? Who's got the last laugh now?.....
posted by 120degrees
on Dec 16, 2000 -