The Global Picture

When the housing crisis and credit crunch first gained momentum, the consensus was that the meltdown was relatively isolated within the U.S. and did not present itself to be a serious contagion.

The rest of the global economies and financial markets would decouple from the mess, especially those in emerging markets with double digits GDP growth and in countries awash in petrodollars.

Now, the rest of the world is taking a hit. Optimistically, this has led to the recent strengthening of the dollar as investors take flight from other currencies. However, it may also contribute to a decrease in exports and a lower demand across the globe for American goods; one of the few bright spots that still remains today.

Here We Go Again!

At 4:26 PM EST, Apollo Global Management LLC Filed an amended prospectus. Here we go again! Did we learn nothing from FIG/GLG/OZM?

Now You're In Trouble.

As of 6 AM EST, Longs Drug Stores (NYSE:LDG) is in serious, serious trouble. Bill Ackman's Pershing Square funds have filed a 13D disclosing a stake in LDG.
Good Luck LDG...You'll need it.

**CORRECTION: This post stated earlier that TP LLC had a stake in LDG. THIS WAS INCORRECT. We appologize for the error.
*DISCLOSURE: Through one of my holdings I have very limited exposure to Bill Ackman's Pershing Square.

Memories of a Time Before the Credit Crunch

While looking through a fund's debt holdings, I came upon the following bond issue:

ARE YOU KIDDING!? Yes, that's right...a THIRD lien unsecured bond with a PIK-TOGGLE with an 8.80% coupon. That's only a few hundred basis points above the FED FUNDS rate a few months ago! If this isn't the quintessential sign of a credit bubble, I don't know what is.

Trouble Ahead for the Orient Express

As of 6:15 AM EST this morning, the Board of Orient-Express Hotels Ltd (NYSE:OEH) has had a target placed on themselves. In a filing with the SEC, David E. Shaw's DE Shaw Group (including TWO client hedge funds and a prop fund) and Stevie Cohen's CR Intrinsic Investors have formed an investor group targeting the Board's continual approval of what the Group calls an illegal corporate structure. When two of the smartest guys on Wall Street send you a letter, don't respond with a four-line rebuttal saying, "We didn't do it". OEH - you're in big, big trouble.