Crossroads

At the intersection of technology, finance and the Pacific Rim.

Saturday, August 29, 2009

How they fall

In the NY Times Deal Book blog there is a an article on how investors are pulling money out of Cerberus, the firm that bought Chrysler and saw their billions of dollars go "poof", worthless, gone.
How do you sleep at night when you do this kind of boneheaded thing? On the other hand, we probably all have done such "dumb-headed" things, just on a smaller scale.

Anyway, the articlequotes the head of the firm:r

"“We are embarrassed and disappointed by our 2008 performance, and we feel an obligation to you to turn this around,” Mr. Feinberg said in the July letter announcing the restructuring. “But we just don’t know when and how much pain we must take before that happens."

Sounds like a big "uh oh, watch out."

Then the article goes on to say...

The comments differ markedly from Mr. Feinberg’s confident tone last September when he told investors that “none of our problem positions are large enough to create a real return problem for the fund.”

Sounds like big train coming down the track, sees big truck on the track waiting to cross. Blows the whistle....Driver not paying attention, his mind elsewhere...awakens.....sees the train.....mouth opens........too late.

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