NYT’s special Dealbook section today had a deliciously giant graphic on the global path money takes in today’s deal making. You may have stumbled across it in print, but found it difficult to track down on line. It was buried in the Dealbook blog, and required a few extra clicks.
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click for ginormous version 
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Source:
Follow the Money
ANDREW ROSS SORKIN
NYT Dealbook, April 2, 2008, 2:03
http://dealbook.blogs.nytimes.com/2008/04/02/follow-the-money/
I’ve been hearing more specifics on the terms of the Lehman deal. Pretty interesting stuff. They basically did the offer ain such a way as to engineer a massive short squeeze. UBS did the same.
I’m hearing the Street worked together to make both LEH and UBS ‘hard to borrow’ just in the nick of time.
World Recession and the Perfect Short Squeeze
Financial Ninja, thanks for the great info… i’ve been visiting your site early and often since I found it a few weeks ago.
These managed markets are a bear to trade in :)
kent-
great analysis…..I thought something was amiss with both of those…….
The problem is that sort of thing is allowed to occur in the context of “free markets”.
Just like the MS deal with China…….
“you can take the deal at this price or wait until after we announce the next (big) write-off and wait for a period of 6 days….”
Chines took the latter and then watched the MM wash MS stock “up” more than 15% in the face of an $8 billion “boo-boo”. Closing price on “deal day”: $55…..day of announcement: $47.50.
Tricks abound and it is allowed in our “free market”…..
Ciao
MS
Tip of the hat to Financial Ninja…Woo-Hoo!
“Invisible Hand @ Work”…say, what was the question?
As H L Mencken once said: “There is always a well-known solution to every human problem–neat, plausible, and wrong.”
Ha Ha! Great chart. The particles of money and anti-particles of bad debt, coming back together for annihilation.
what a convoluted mess deal making has become just to make 2% return!!! how can this system survive?
excellent blog once again. you are a voice reason on tv even though ‘bears’ are painted as hostile?
Ah yes, the Free Market!
I finally understand what they mean when the corporate hired guns condescendingly tout “the free market”.
Free from regulation – Free from real world – Free from consequences – Free to receive free money from the taxpayer – free from the poor and get out of jail free card
China is just starting so pretty supportive for financials on a medium term horizon, once vicious bearish cycle is broken(years?).
Also it seems singapore is the biggest looser here. How do you react when you’ve been heavily investing in financial institutions just before a meltdown? Paralysed and suspicious probably. What can restore your confidence? Time and stability.
Interesting to see how all the loose ends are small and few relative to the big incestuous circles.