This article outlines some of the upside opportunity in Spain.  Their problems primarily reside in the banking and private sectors but this weekends bank recapitalization should help things considerably.  It will be interesting to see how credit markets react to the deal but my gut feeling is that it will be positive.  I think there...Read More

Telefonica (TEF) announced that they are selling half their stake in China Unicom for $1.4 billion.  They still own 5% in the company moving forward.  I think this is a positive mood as it allows the company to reduce their debt load.  Telefonica has some valuable minority interests but unfortunately it is not a really...Read More

This article insinuates that because of bailout of Spanish banks, the bond market is likely to punish the countries sovereign debt.  I might end up looking foolish but I think this deal is a huge positive for Spanish bonds.  By eliminating this massive problem which has plagued Spain, the focus will be on boosting growth...Read More

General Electric is considering selling off non-core businesses in GE Capital to reduce their reliance on the division’s earnings.  I don’t really believe that shrinking GE Capital is the best decision for GE shareholders.  It is more important that GE Capital increases its deposit base to shore up longer term funding sources.  The main reason...Read More

I’ve long been concerned about the housing market in Australia where prices have rose unsustainably based on their export driven commodities boom and low unemployment.  Delinquencies are increasing quite quickly particularly on the lower quality mortgages and with commodities prices declining the situation is likely to get worse.  At T&T Capital Management we rarely short...Read More

Dish Network (DISH) Chairman Charlie Ergen is rattling the cages of TV networks and advertisers by promoting a technology which skips commercials.  It is not hard to realize why this would be upsetting for the networks and advertisers as it has the potential to radically shake up a very lucrative industry.  Ergen believes that the...Read More

Saturday marks an important day as euro-zone officials and EU finance ministers will discuss how to support Spain.  Spain’s banks need to be recapitalized and the government and at the current borrowing costs Spain must look outside for help.  These piecemeal bailouts do nothing to inspire confidence which is one of the major problems in...Read More

The FHA is looking to sell defaulted loans to investors opening up the opportunity for loan modifications on these loans.  This is a very positive development as there is still a lingering shadow inventory of defaulted mortgages that must be cleared away for the housing market to fully recover.  Pricing is probably slightly less attractive...Read More

While markets rallied initially this morning, they tailed off towards the end of the day as fears of a global slowdown eroded confidence.  I think China’s decision to cut interest rates is very significant and I believe that it is the first of several more cuts to come.  Europe is in a severe recession that...Read More

This was an excellent interview by David Rubenstein with Warren Buffett.  He touches on a variety of subjects including the economy, his investment style, and his philanthropy.  He believes the odds of a recession are very low unless the situation in Europe deteriorates much further.  It’s always enjoyable seeing Buffett interviews so if you have...Read More