Best Video Title
Posted by Eddy Elfenbein on July 13th, 2009 at 11:36 am

I found this at Barry’s joint this morning:

Or maybe they won’t.

Wells Fargo Bank Sues Itself
Posted by Eddy Elfenbein on July 11th, 2009 at 11:43 pm

That’s one way to control for risk:

You can’t expect a bank that is dumb enough to sue itself to know why it is suing itself.
Yet I could not resist asking Wells Fargo Bank NA why it filed a civil complaint against itself in a mortgage foreclosure case in Hillsborough County, Fla.
“Due to state foreclosure laws, lenders are obligated to name and notify subordinate lien holders,” said Wells Fargo spokesman Kevin Waetke.
Being a taxpayer-subsidized, too-big-to-fail institution, it’s possible that one of the few ways for Wells Fargo & Co. (WFC: 22.91, -0.34, -1.46%) to know what it is doing is to notify itself with a court filing.
In this particular case, Wells Fargo holds the first and second mortgages on a condominium, according to Sarasota, Fla., attorney Dan McKillop, who represents the condo owner.
As holder of the first, Wells Fargo is suing all other lien holders, including the holder of the second, which is itself.

Sounds like a Coen brothers movie.
(Via Calculated Risk Via Howard.)

The Real World in Washington
Posted by Eddy Elfenbein on July 11th, 2009 at 6:12 pm

They’re currently filming the Real World in Washington.
I saw a few of the housemates strolling along Florida Avenue yesterday. Here’s a bad picture of some of the girls:

If you squint carefully you can make out the cameraman stalking them in the bushes, which looks kind of creepy (as opposed to me and my cellphone).

Crossing Wall Street Turns Four
Posted by Eddy Elfenbein on July 11th, 2009 at 5:58 pm

Happy fourth birthday to Crossing Wall Street! This is my 4,289th post.
Here’s my very first:

Europe Vs. Gillette and P&G
The European Constitution finally ended its nasty losing streak yesterday when it was approved by voters in Luxembourg. Even if the good people of the Grand Duchy had voted against the referendum, the Eurocrats don’t seem terribly interested in losses at the polls. The Constitution is quite popular as long as no one actually has to vote on it. That’s why the Luxembourgian Yes vote (or Jo vote?) is so important. It keeps “the process” alive. And that’s the important thing—the process. The Constitution has already been shot down by voters in Holland and France, yet the EU leaders insist that “the process” continues, which I take to mean as “vote until you get it right.”
However, there’s another election coming this Tuesday that might similarly be ignored by the Brussels Busybodies. In Boston, Gillette’s shareholders will meet to vote to approve their merger with Procter & Gamble. The deal will almost certainly be approved. Warren Buffett, Gillette’s largest shareholder, has called it a “dream deal.” That’s a nice endorsement to have.
But the merger has hit an unexpected snag—the EU doesn’t like it. Now let’s recount the action: We have two U.S.-based businesses agreeing to a friendly merger. The deal has been approved by U.S. regulators, and it will certainly be approved by shareholders. But the regulars in another country (or entity, at least) object. And what’s the sticking point?
Toothbrushes.
I’m not making this up. Gillette owns the Oral-B brand of battery-powered toothbrushes, and P&G has its own Crest brand. The EU thinks that if the two are combined, the new cowboy superpower will have a competition-stifling command of the global toothbrush market. Think of the horror. Across the continent, mom-and-pop toothbrush makers will be driven out of business by uncouth Americans. Oral care has generally not been a major concern for Europeans, so I guess this is progress of some sort, but it’s a disturbing trend nonetheless.
This isn’t the first time Europe has interfered with American business. As the economy has gone global, so have the bureaucrats. Four years ago, the EU blocked General Electric’s merger with Honeywell. But the issue there was at least something cool, aircrafts. But toothbrushes?
If you had to sum up the pettiness of the European bureaucracy, this would be as good as any. But this is what the Global Economy looks like. Gillette and P&G will have no problem finishing their merger. The Europeans might delay it for a while, and the companies will probably have to sell off some units. But now, every time two businesses even think about merging, they’ll have to consider what might happen in Brussels, not to mention, Luxembourg.

The Power of Free
Posted by Eddy Elfenbein on July 10th, 2009 at 10:24 pm

From Virginia Postrel’s review of Chris Anderson’s Free: The Future of a Radical Price:

Monty Python created a YouTube channel with their most popular skits in hopes of enticing fans to buy their DVDs. Their shows and movies soon hit Amazon’s best-seller list, with increased sales of 23,000 percent.

Fans Flock to Mourn California, 1849-2009
Posted by Eddy Elfenbein on July 10th, 2009 at 1:47 pm

Iowahawk is on the scene:

From a humble beginning as a water-poor remote Spanish mission outpost, California proved to be a precocious and talented child performer. It struck gold with ‘Sutter’s Mill’ in 1849, earning accolades and attracting millions of crusty bearded prospectors. Black gold soon followed with ‘Arizona.’ Unlike many child acts, California made a smooth transition to adolescence, scoring a major hit with ‘Agriculture’ in 1891.
Even a frightening bout with tremors did not stop the flow of hits. The 1915 megasmash ‘Hollywood’ broke all records, as did the wartime favorite ‘Aerospace.’ More recently, California topped the charts with ‘Tourism,’ ‘High Tech,’ and ‘Coastal Pretension.’
For a time it seemed as if the superstar could do no wrong, but behind the glittering facade of Disneyland Manor troubling signs of mental instability began to emerge. The state developed a well-publicized drug problem during filming of 1967’s ‘Summer of Love,’ and briefly dabbled in strange religious cults. Under the influence of spiritual guru Jerry Brown, it began wholesale experimentation in exotic spending programs, eventual resulting in a traumatic 1979 stay at the Prop 13 Rehab Center.
During the 80’s and 90’s California enjoyed a brief career renaissance with hits like ‘Olympics,’ ‘Real Estate’ and ‘Dot Com Boom,’ but personal problems plagued the reclusive star once again. During the recording of the ‘OJ’ and ‘Rodney King’ albums, friends and visitors expressed concern over its recurring tremors and penchant for self-mutilation.
“California used to be so happy and beautiful,” said a horrified Ohio. “I hardly recognize it any more.”
During that period, camp insiders say the increasingly psychotic state began driving away its long time professional management team and support crew. In its place, it assembled an entourage of con men and embezzlers, some of who stoked California’s increasingly bizarre environmental paranoia. It was seldom seen in public without a breathing mask to ward off imagined pollutants.
Worse, the hits began drying up; the huge 2001 flop ‘Dot Com Bust’ put a huge crimp into California’s once unlimited cash flow. Despite the setback, insiders say the superstar was unwilling to change its lavish lifestyle, and retreated once again into spending abuse. Personal expenses skyrocketed, propelled in part by California’s eight million adopted foster children. During the 90’s sensationalistic accounts of child abuse began surfacing. Eyewitnesses reported California cruising local neighborhoods in school buses, luring unsuspecting kid for sessions of ‘public education.’ By some estimates hundreds of thousands were left traumatized and severely brain damaged.

Read the whole thing.

The Big Business of Overdraft Fees
Posted by Eddy Elfenbein on July 10th, 2009 at 11:05 am

Contrary to what you might think, banks love overdrafts. They’re happy to cover you then charge a hefty fee. This year banks will rake in close to $40 billion through overdraft fees. To put that in context, it’s about double what they’ll make off credit card penalties. If it weren’t for overdraft fees, nearly half of all banks and credit unions wouldn’t have made any money last year.
USA Today reports:

Large banks also reserve the right to process large transactions first, triggering more overdraft fees by emptying the account more quickly. Some even charge consumers before they overdraw by deducting a purchase when it’s made, rather than when it clears, pushing the account into the red sooner.

There is a simple way for consumers to avoid all this—balance your freakin checkbook!

The Volatility Storm Has Passed
Posted by Eddy Elfenbein on July 10th, 2009 at 10:38 am

What happened to all the volatility? Here are the closing S&P 500 levels for Tuesday, Wednesday and Thursday—881.03, 879.56 and 882.68. Snore!
Here’s a look at the S&P 500’s daily changes going back to 2005.

Right now we’re at 881.38. This market is flat!

CNBC Follows Up Its Special Report on Weed with One on Hookers and Another on Porn. Trend?
Posted by Eddy Elfenbein on July 10th, 2009 at 10:15 am

Is it me or does there seem to be a trend with CNBC’s special reports? First David Faber did an excellent job with “Marijuana Inc: Inside America’s Pot Industry.” Tonight is the premiere of “Dirty Money: The Business of High-End Prostitution.” And next Wednesday, they air “Porn: Business of Pleasure.”
And they employ Dennis Kneale.
Don’t get wrong, I’m all for this vice stuff. But some of their sponsors aren’t too thrilled with the idea. Mediaite notes that Charles Schwab pulled it sponsorship of Fast Money—though not from CNBC entirely.

Same-Stores Sales for June
Posted by Eddy Elfenbein on July 9th, 2009 at 3:18 pm

Here are the mostly ugly totals for June:

DISCOUNT
BJ’s Wholesale Club -7.5 pct
Costco -6 pct
Target -6.2 pct
DEPARTMENT STORES
Bon-Ton Stores -8 pct
Dillard’s -14 pct
Fred’s 0.2 pct
J.C. Penney -8.2 pct
Kohl’s -5.6 pct
Neiman Marcus -20.8 pct
Nordstrom -10 pct
Macy’s -8.9 pct
Saks -4.4 pct
Stage Stores -12.6 pct
CLOTHING AND TEEN-ORIENTED
Abercrombie & Fitch -32 pct
Aeropostale 12 pct
American Apparel -13 pct
American Eagle Outfitters -11 pct
The Buckle 9.6 pct
Cato Corp. -3 pct
The Children’s Place Retail Stores -12 pct
Destination Maternity -10.7 pct
Gap Inc. -10 pct
Hot Topic -7.9 pct
Limited Brands -12 pct
Ross Stores 1 pct
Stein Mart -8 pct
TJX Cos. 4 pct
Wet Seal -11.1
Zumiez -19.3 pct
DRUG
Rite Aid Corp. -0.6 pct
Walgreen Co. 3.4 pct