Baxter Finley

"Dressing for Success, Again" (NY Times Fasion and Style)

THE runaway phenomenon that is “Mad Men,” with its stylish depiction of Kennedy-era New York, where men dressed with style and philandered with impunity, has handed modern men their very own “Sex and the City” fantasy.

But an overlooked aspect of “Mad Men” is the fashion turnabout it represents. In the show, the older men — Don Draper and his boss, Roger Sterling — are the best-dressed characters, while the new-kid, cool-cat copywriters are so loath to play the game that they won’t even wear a tie. Soon enough, the hippie movement would deride the necktie as a “dog collar” and any corporate-minded spoilsport as a “suit.” In the decades that followed, a minor genre of films addressed the Unsuiting of Mr. X, from “Barefoot in the Park” (1967) and “Easy Rider” (1969) to “After Hours” (1985) and “Something Wild” (1986).

Continue reading this piece over at NY Time Fashion and Style. (thanks to Valet mag for the point)

Auto CEOs Flew Private Jets To Washington To Ask For Your Tax Money

ABC News says that the big three auto CEOs "flew to the nation's capital yesterday in private luxurious jets to make their case to Washington that the auto industry is running out of cash and needs $25 billion in taxpayer money to avoid bankruptcy."

Just because your company is on the verge of bankruptcy— well, that's no reason not to arrive in style. Right?

From ABC:

All three CEOs - Rick Wagoner of GM, Alan Mulally of Ford, and Robert Nardelli of Chrysler - exercised their perks Tuesday by flying in corporate jets to DC. Wagoner flew in GM's $36 million luxury aircraft to tell members of Congress that the company is burning through cash, asking for $10-12 billion for GM alone.

"We want to continue the vital role we've played for Americans for the past 100 years, but we can't do it alone," Wagoner told the Senate Banking Committee.

While Wagoner testified, his G4 private jet was parked at Dulles airport. It is one of eight luxury jets in the GM fleet that continues to ferry executives around the world despite the company's dire financial straits.

ABC estimated that the trip cost GM $20,000, as opposed to a first class ticket on Northwest Airlines flight 2364 from Detroit to Washington — which would have cost about $800.

Amazingly, private jets are a luxury that even free-spending AIG is reconsidering.

AIG, despite the $150 billion bailout, still operates a fleet of corporate jets. The company says it has put two out of its seven jets up for sale and is reviewing the use of others. Though there are no such plans by GM or Ford.

via

More unfavorable bail out opinions

When the bail out plan was first talked about, most people including us felt insulted and angry with the idea of "bailing out" the fat cats - but after some hearing what the consequences would be, most of folded and accepted the idea of a lesser evil.

Now ... BloggingStocks writers have noted many cases where the way the government bailout of Wall Street is playing out seems to be adding insult to injury.

Here are eight recent examples:

Wall Streeters Can Still Expect Big Bonuses

When the government agreed to bail out Wall Street, the goal was to provide funds to shore up banks' capital bases so they would start lending again. It wasn't to help them fund the bonus pool. But estimates run that as much as $70 billion will get paid out in bonuses to Wall Streeters this year. That amount equals 10% of the $700 billion bailout.

A Goldman Hotshot Doles Out the Money

Neel Kashkari, a 35-year-old former Goldman Sachs whiz kid who believes in free markets, is getting the job at the Treasury Department of dispersing the government's $700 billion rescue. Is he really the right person for the job? Lots of observers have wondered if a seasoned vet with a little more political experience might be a better fit for the task at hand.

How Is AIG Spending Its $85Billion?

AIG sent salespeople on a lavish luxury retreat at the same time it was getting billions in government aid. The retreat at the St. Regis resort in Monarch Beach, Calif., cost AIG $440,000 and came right after it received a $85 billion line of credit. Even worse, it planned another lavish retreat soon after. But when the press caught wind of that one, it was soon cancelled.

Isn't Getting to Keep Their Jobs Bonus Enough?

Some of Lehman's top executives got signing bonuses to stay at the banks that acquired their divisions in bankruptcy proceedings. The Financial Times reported that Nomura, which bought Lehman's European and Asian divisions, gave bankers cash equal to last year's bonus if they agreed to stay at Nomura for a year, for example. Given massive firings on Wall Street, were those payouts really necessary?

Most Failed CEOs Still Get to Keep Their Millions

2008 has been a year of watching CEOs at failing financial firms get fired -- but with a few million to soften the blow. The compensation they enjoyed was at least theoretically tied to profits earned while they were running the show, but the profits have vanished by now. Most will get to keep their money, although AIG's former CEO may not.

They Want Our Pity?

Lehman Brothers' ex-CEO Richard Fuld seemed to want pity when testifying before Congress and spoke about how he lies awake at night wondering what he could have done differently. Former Federal Reserve Chairman Alan Greenspan wasn't much better when he told Congress, "I made a mistake," when he reasoned that Wall Street could police itself.

Shouldn't Banks Use the Money to Help the Economy?

Nope. It turns out that banks can use the money however they want. Banks that are getting government bailout money are contemplating using it for other things -- like buying other banks -- not adding it to the lending pool so they can make more loans and end the credit squeeze. Next up, insurance and car companies may get to tap into the funds.

Lawyers Are Big Winners in All This?

Wall Street law firms are getting a bonanza of billable hours from the government bailout. Not only are they representing firms in contract negotiations that come as part of the bank bailout, but they are also helping firms that are now in trouble with regulators. There are few sectors that are making hay from this crisis, but law firms that represent investment banks are one of them.

The good from the bad: 10 things going right in America

(photo: GQ)

The markets may be in turmoil. The economic outlook is grim. But not all the news is bad. From Kiplinger.com - No. 9 being our favorite.

No. 1: Oil Loses Its Swagger

With the U.S. and global economy hurting, oil prices have dropped 50% in just three months, from $147 a barrel in July to the $70 range. Remember $80-$100 fill-ups at the pump? The national average for a gallon of gasoline is down to $3.00, from $4.11 in March, and should stay in the $3.00-$3.50 range through next year. Prices for home heating oil and natural gas are also headed lower this winter than last.

No. 2: A Tipping Point For the Auto Industry

After years of talk and false starts, finally, all the major car makers are furiously developing hybrid and alternative-fuel vehicles that could lessen our dependence on foreign oil. Meanwhile, desperate dealers are offering unheard-of incentives on new, gas-fired models. For example, Toyota is offering $1,000 cash back and 0% financing on the 2009 Camry, the most popular car in America. Don't drive much? If you've always wanted an SUV or truck, the discounting on some models is extraordinary.

No. 3: Interest Rates AreLow and Headed Lower

The prime rate is at 4.5%, which is driving down interest rates on home-equity lines of credit and some consumer loans. The interest rate on a traditional 30-year fixed-rate mortgage is averaging 6.5%, the highest it's been since the summer of '07, but still not too far from the historic low of 5.8% reached in '03-05 and '63-65. And although credit-card companies are cutting personal spending limits, rates are dropping, too. The average rate on credit-card purchases fell to 11.89% in the first week of October, down from 12.13% in September, according to LowCards.com.

No. 4: Homes Are More Affordable

Real estate, which was overpriced during the housing bubble, has returned to earth. That's especially good news for first-time home buyers who were priced out of the market. While scare stories persist of credit drying up, the reality is more a return to traditional lending standards that had been thrown overboard-recklessly in many cases-by lenders. That means to qualify you usually need a 20% down payment, sufficient annual income, good credit and a tolerable load of debt.

No. 5: Your Bank Savings Have Never Been Safer

The $700-billion federal rescue plan more than doubles the amount of federal deposit insurance on individual bank accounts, to $250,000 from $100,000. Uncle Sam sweetened the pot further on October 14 by providing unlimited FDIC insurance on non-interest-bearing accounts. That will provide more coverage for the nation's small businesses, which use these accounts. Plus, a new temporary federal insurance program covers the full value if your money-market-fund shares fall below a net asset value of $1.00 (called "breaking the buck").

No. 6: Stocks on Sale/Many Bonds Offer Yields

The current bear market is approaching the '73-74 and '00-02 downturns, the two worst retreats since WWII. The good news: individual blue chips are selling at bargain prices. For example, shares of AT&T sell for about eight times estimated '09 earnings and yield 6%. Networking giant Cisco Systems sells for only ten times earnings estimates for its July '09 fiscal year. Google is going for less than 15 times estimates. Triple-A-rated tax-free bonds, an extraordinarily safe investment, are paying 5%-plus for ten years and 6% for 20. That's more than the Treasury offers for bonds of the same maturity.

No. 7: Technological Innovation Continues

Been to Best Buy, Sam's or Costco lately? For $799, you can now buy a 42-inch, high-definition flat-panel TV that will knock your socks off. Throw in another $200, and you can get a surround-sound system to truly transform your den into a home theater. A top-of-the-line PC with more memory than you'll ever use now costs $1,000; high-end laptops with all the bells and whistles go for $1,200, down from $2,000-$4,000 five years ago. And giant leaps in handheld devices, such as Apple's new iPhone, have revolutionized the way people interact with the world.

No. 8: Prosperity Reigns In the Heartland

The fall harvest is shaping up as one of the best ever, despite the destructive weather and floods in the Mississippi River corridor since last spring. Exports of U.S. farm products will increase more than 40% by value this year. And recent years of high profits have allowed farmers to pay down debt so low that it accounts for a measly 9% of their assets -- providing all the credit they'll need for 2009 operations. At home, while food prices jumped sharply earlier this year, the weak economy is now expected to slow further price increases.

No. 9: A New Tone and Direction in Washington

Whether it's Barack Obama or John McCain who enters the White House in January, election of a new chief executive should provide at least 100 days of galvanizing certainty for markets, and a new direction and sense of purpose for the country.

No. 10: Great Gift Buys This Holiday Season

Retailers depend on robust end-of-year sales to turn a profit, but for 2008, the National Federation of Retailers forecasts holiday spending will increase only 2.2% from last year. That won't even beat inflation. It's good news for bargain hunters, though. Both brick-and-mortar and online retailers are gearing up to offer huge discounts to boost sales. For example, Deal News predicts a DUAL Core Intel Laptop will go for as low as $299 on Black Friday, the day after Thanksgiving, and a Canon PowerShot SD1100 will go for a very low $139.

Death and Taxes

A very cool poster from wallstats.com - an incredible illustrated poster detailing government spending "federal budget".
Some ammunition to use at your next cocktail party.
Detailed views here  / $24.00

What is short selling ..

For those who are wondering what short selling is ... here is a great video breaking it down for us.

Getting naked in short selling from Marketplace on Vimeo.

"Disturbing Behaviors"

According to USA Today: 9 of 10 American families shop at Walmart at least once a year. Walmart obviously have there finger on the pulse of the nation and the economy -- they do have one of the most sophisticated sale monitoring systems

So when they speak, maybe we should listen to these six "Disturbing Behaviors" facts.

1. Cash-strapped consumers are buying baby formula at the beginning of the month, when they have more money.
2. A double digit decline in the use of credit cards in the second quarter.
3. 80% of consumers surveyed by Walmart say "personal financial security" is their top concern. Formerly, it was the price of gasoline.
4. Purchases of generics have doubled.
5. Shoppers are changing how often they visit the store. Some come more often because they have less money and can only afford small purchases. Some come less often to save gas.
6. Walmart now sees a 2.5% sales increase in the middle of the month, when paychecks are handed out.

[consumersit]

Luxist asks Savile Row: "will you survive the economic crisis"?

From Luxist:

The seemingly endless gloomy news about the economy got us thinking about the financial crisis' effect on Savile Row, the home of luxury bespoke tailoring. As my colleague Deirdre Woolard reported last month, Hardy Amies, which opened on Savile Row in 1946, is facing bankruptcy. Of course, Amies' ambitious expansion plans are partly to blame. We asked Anda Rowland, owner of Anderson & Sheppard, which recently celebrated its 100th anniversary, what the outlook is for the Row's traditional tailoring firms.

"We are still getting new customers and many enquiries, but it has to be said that London is not really in the mood to spend and people are traveling [to London] less," Rowland tells Luxist. "Luckily, despite the turn away from 'bling' spending, there has been a renewed interest in goods that have an underlying value, which is perceived as more solid and easier to understand and to explain to the customer. There is a shift from the 'Because I'm worth it' attitude towards one questioning 'Was it worth it?'"

Rowland notes that this "will be hard for the mass-luxury goods and the over-hyped but extremely lucrative 'it-bag' industry, but good for individual, high-craft items made by skilled hands," such as Savile Row suits. "We also have ethical trends in our favor as everyone faces up to the enormous piles of barely worn 'fast fashion' garments in landfill sites all over Europe at a time when many are losing the roofs over their heads." Due to this, Rowland says, "We have not seen a reduction in sales or customer figures from last year," merely "a recent slowing of momentum."

Asked about the influx of money from emerging markets, "Speaking for Anderson & Sheppard, we have not seen a growth in customers from Russia or from the UAE," she replies. "We have had more press interest, but it has not filtered through to visits yet. China and India are growing markets [for us] due, perhaps, to a historical familiarity with the history and tradition of Savile Row." As for the future, "I have heard from the other tailors that they believe that their trips abroad will be more and more important over the next couple of years," Rowland says. "They feel that customers will be traveling far less and that overseas service will help them to keep the workshops busy and running efficiently."

Summing up, Rowland, who inherited the business a few years back from her father, is optimistic. "As a relative newcomer to this industry where most houses are at least 100 years old, I am reassured by the reaction of most tailors who say that their firms have seen it all several times before," she tells us. "I can imagine that for many of the big designer brands that are much younger, it is harder to be as quietly confident as we are on Savile Row."

Iceland is melting

So we lose 10% in a day and feel like the sky is falling - what if we lost 77% in one day?

Icelandic Stocks Drop 77% as Trading Resumes After 3-Day Halt: “Iceland's benchmark stock index plunged 77 percent, the biggest decline on record, as trading resumed after a three-day suspension and the nationalization of the country's largest banks.

Kaupthing Bank hf, Glitnir Bank hf and Landsbanki Islands hf collapsed this month with debts equivalent to as much as 12 times the size of Iceland's economy. The three banks accounted for about 76 percent of the ICEX 15 Index's value prior to the nationalization.

The OMX Iceland 15 Index fell 2,317.23, or 77 percent, to 687.39 as of 11:48 a.m. local time. Five of the 13 other stocks in the index didn't trade, while the five that did account for about 7.1 percent of the index's value.

Trading was halted since Oct. 9 after the measure lost 30 percent in nine days as the country's financial system collapsed. Iceland's delegation started talks in Moscow today to secure an emergency loan of as much as 4 billion euros ($5.47 billion) from Russia.

[financial ninja]