SNIPPETS

Don't ya just love the brazenness of it all. The God-work doers at Goldman Sachs just drop 500 million into the pocket of the Boy Billionaire over at Facebook amid shouts of outrage and shock. "The valuation is ridiculous," scream those who aren't on Glodie's client list knowing full well that the great unwashed (themselves) are about to be hosed in a few years when this thing goes public underwritted by Goldman Sachs of course. Who said these boys don't know how to make a buck? I can remember standing on the Metro North station one morning years ago when Drexel went toes up. The smug smiles of all those around were a sight to see. If Goldie ever suffers the smae fate there's going to be a block party that will last for a month. Lovely bunch this Wall Street crowd.

Well, the Repubs took over the House today so let the games begin. The Dems response has been to call for compromise and unite in a choreiographed assault on all those who believe the Constitution is in anyway important. I thought they could do better but given time, I'm sure they will. Then again...

Over in Euroland, Portugal successfully issued E500 million in 6 mo. T-Bills. The cover ratio was good but the interest rate was close to 3.70% which is nearly double from what they paid in September. It's starting. This portends a very, very difficult year. Frankly, the rate surprised me; I never expected to see such a jump this early in the new year. Meanwhile, the Euros walked out of meetings with the Hungarians on matters of mutual interest because of a new law (series of laws actually) the the Hungarians a talking about which will severely limit free speech and other civil rights. The Magyars drive everybody nuts every 4 years or so and have going back 40 years even when they were supposed to be communists, but they're so much fun folks keep coming back. Budapest is a sensational city. Go visit.

The Chinese took a step the other day that caught me wrong-footed as well. They limited the amount of Yuan that could be held by companies in Hong Kong to a percentage of their foreign currency assets (10%). I think I have this right but what the exact rules might be is not as important as the step itself as it appears to be a move away from the more liberal approach that has been signaled over the past few months. Don't know why, really, and the explainations don't satisfy me. Then again it may be something I simply missed. I'll keep watching it.

Finally, the boys at the coffee shop tell me things are looking up economy-wise, with confidence returning. I asked why and the answer I got was, "The election. You East Coast boys aint real smart." Hell, I knew that, but I hope the guys are right. Then again, I don't like $3.35 gasoline. That's high test out here. That's for the wife's car. Girl in an absolute cost center.