The smoking gun is coming into veiw.
Lehmans Failure Is Another Blow for Hedge Funds
The bankruptcy filing of Lehman Brothers is another blow for the hedge fund industry, though the writing has been on the wall long enough for many to have reduced their exposure to the U.S. investment bank, according to Reuters.
Legendary fund manager George Soros, who runs around $18 billion in assets, looks likely to have had his fingers burned after raising his stake in Lehman to 9.5 million shares in the second quarter, according to the news service.
British activist hedge fund Algebris will also probably have taken a hit from the fall in the share price of what was the fourth-largest U.S. investment bank, Reuters said. The hedge fund firm owned just over 4.45 million shares at end-June, Thomson Reuters data show. Algebris sold its stake this year, a spokesman told Reuters, declining to give further details.
Dealings through Lehman’s prime brokerage business were also suspended on Monday, which will have caused problems for some hedge funds, though the industry has been seeking to increase the number of banks they deal with to spread risk.
The slump in Lehman’s share price is unlikely to have benefited many hedge funds, even though they have the ability to “short” a stock — which is essentially a bet that makes them money when the share price falls.
Many had taken their bets off the table in recent weeks following the spike in bank shares in July, and shorting also becomes more costly as the share price falls, because fewer people are willing to be on the other side of the trade.
“At the end of the day, how many hedge fund managers will be shorting Lehman at $3.75, when it’s come from $70?” one fund of hedge funds manager told Reuters. “Many have been reducing or taking off their short positions over the last few weeks or so.”
Meanwhile, the slump in markets — the FTSE 100 closed 3.9 percent lower at 5,204.2 on Monday — will prove painful for long-short equity funds, most of which are positioned for rising markets.
“Obsession” DVD Raises Concerns Over Propaganda
One Newspaper In North Carolina Refused To Circulate The DVD
MIAMI (CBS4) ― The documentary, “Obsession: Radical Islam’s War Against the West,” a DVD distributed nationally inside certain newspapers, is being alluded to as inflammatory by Muslim groups in South Florida, showing scenes encouraging children to become suicide bombers.
Altaf Ali was shocked when he opened his Sunday paper and found a copy of the DVD. He is the director of the Florida Chapter of the Council on American Islamic Relations.
He explained to CBS4 Reporter Ileana Varela that he has gotten numerous calls from Muslims worried the DVD will promote hate and bigotry against their community.
“Obsession” had been inserted into newspapers aimed at voters in the battleground states in order to raise security concerns ahead of all other issues in the election.
There has been no traditional distributors picking up the film, and this month, it was distributed in more than 70 newspapers across the nation, including The Miami Herald.
The Clarion Fund paid millions of dollars to get the DVD out. It’s a non-profit organization that claims to focus on national security and is listed with contact information below the credits.
The DVD release was timed to coincide with the seventh anniversary of the terrorist strikes of Sept. 11, 2001.
Good Greif Kerry you lost in 2004 LET IT GO
Kerry Race Headlines Primary Day
BOSTON (WBZ) ― Four years after losing his party’s bid to unseat President Bush, John Kerry is asking Democratic voters to back him for another term in the Senate.
Kerry faces his first Democratic challenger in 24 years in Tuesday’s primary election in Massachusetts. The winner of the race with Gloucester attorney Ed O’Reilly will square off in November against Republican Jeff Beatty, a former CIA official.
U.S. Rep. John Olver of Amherst is challenged in the Democratic primary by Stockbridge attorney Robert Feuer.
Secretary of State William Galvin says he expects voter turnout to be low, because there is only one statewide race.
Polls are open until 8 p.m.
If there is ONE race outside the White House I want the GOP to win its this one
Republican William Russell barely made it on to this year’s ballot. A successful write-in campaign in the primaries earned him a spot on the GOP ticket. Now he says he’s ready to go head to head with political powerhouse John Murtha.
Over the weekend, Russell officially opened his campaign office in Johnstown; an area commonly described as a Murtha stronghold.
“Certainly this is an area that has experienced a great deal of the benefits of his earmarks, and also a great deal of the detriments of those,” Russell said.
Russell says he’s staunchly opposed to congressional earmarks, and would like to see the region’s economy supported by the private sector. The retired Army Lt. Col. supports developing coal and natural gas reserves in Pennsylvania. And in his TV ads, he calls for an apology from Murtha, after the democrat publicly excoriating marines accused of murdering Iraqi women and children in Haditha.
“If Mr. Murtha were so in touch with our men and women serving in uniform, we should have heard as equally public and sincere apology to each and every one of those marines, and it has never happened,” Russell said.
So far seven of the eight marines involved have been cleared of any wrongdoing. When asked in August about the possibility of issuing apologies, Murtha dodged the issue.
“There were 23 innocent people, women and children killed. It’s right now under judicial review, so we’ll wait until that’s over with before we have any other comments,” Murtha said.
The last marine still facing charges, Staff Sgt. Frank Wuterich, is currently awaiting trial. He’s filed a defamation lawsuit against Murtha for his remarks.
When asked about the advertisement, Murtha spokesperson Matthew Mazonkey issued a written statement.
“This election is about creating jobs, strengthening our economy, and finding solutions to our energy needs. And on these issues, Congressman Murtha is leading the fight both nationally and throughout our region,” the statement read.
WGN-AM again target of Obama campaign
by John McCormick
Chicago radio station WGN-AM is again coming under attack from the presidential campaign of Sen. Barack Obama for offering airtime to a controversial author.
It is the second time in recent weeks the station has been the target of an “Obama Action Wire” alert to supporters of the Illinois Democrat.
Monday night’s target was David Freddoso, who the campaign said was scheduled to be on the station from 9 p.m. to 11 p.m. Chicago time.
“The author of the latest anti-Barack hit book is appearing on WGN Radio in the Chicagoland market tonight, and your help is urgently needed to make sure his baseless lies don’t gain credibility,” an e-mail sent Monday evening to Obama supporters reads.
“David Freddoso has made a career off dishonest, extreme hate mongering,” the message said. “And WGN apparently thinks this card-carrying member of the right-wing smear machine needs a bigger platform for his lies and smears about Barack Obama — on the public airwaves.”
The Tribune-owned station was flooded with calls and e-mails about an hour before an Aug. 27 interview with Stanley Kurtz, a conservative writer who examined Obama’s ties to former 1960s radical William Ayers.