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Archive for September 11th, 2008

the mitotic phase

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From the NY Times just now:

Lehman, one of the nation’s largest investment banks, said it expected to report a $3.9 billion loss for the third quarter, an even bigger deficit than analysts had forecast, and cut its dividend to shareholders. It also announced long-expected plans to sell most of its prized investment management division and, more radically, to split itself into a “good” bank and a “bad” one.

The split, a strategy employed with mixed success by several other banks in the 1980s and 1990s, would enable Lehman to isolate worrisome commercial mortgages and real estate.

Lehman planned to spin off about $30 billion of such problematical assets into a separate company — the “bad” bank — which would be owned by Lehman shareholders. The hope was that the holdings of the bad bank will eventually increase in value, yielding profits for its shareholders.

No, it’s a brilliant idea. And following Lehman’s lead, I am delighted to announce that as of 00:00 12/9/08 GMT, I will split myself into two entities, a “good” CR and a “bad” CR.

The former will henceforth spend his evenings reworking his manuscript per the reader’s orders, will limit his alcohol consumption to UK government’s suggested 28 units per week, and will only blog about high-minded matters and without self-involvement.

The latter will continue to spend afternoons in a crappy coffeehouse filling up a moleskine with poetry better written back when he was a kid, continue writing posts that he wakes up to regret the next morning, and will check the JIL * first thing tomorrow because he was both made and broken by that system and refuses to recover from his addiction, even though he’s no longer on the market.

I’m not sure I understand the technicals of the Lehman thing, but seems a wee bit unfair, no?

* Good luck, JILers of the world.

Written by adswithoutproducts

September 11, 2008 at 9:48 pm

Posted in economics, me