BACK IN ACTION
I am back from a month in Europe and have come back to cheaper stocks, yet not yet nearly cheap enough as the market is currently at its third highest valuation point in the last 100 years, cheap materials, especially metals and natural gas, higher interest rates, and way too low credit spreads. Given all that I can honestly say that I have not looked at the markets or anything else for an entire month; it is really refreshing when your only decision is which club to party at along the French Riviera instead of which asset looks the most attractive.
Actually, Paul and I attended the most ridiculous party that either had ever been to in our lives in St. Tropez on the beach; it is almost to hard to explain but I guess I can tell you that there was a naked broad riding a unicorn on the dancefloor. We didn't leave the party to sun up and thought to call a couple of you unlikely bastards that were probably working.
Alright, enough about how Paul and I are chilling and you guys are working. I do have two alternative theories immediately for all of you. Kenneth Lay is still alive, and Goldman Sachs is going down, or at least in for a major fall. Paulson, like Mello and other insiders, know what Paul and I have been yelling, that the company is in trouble which is why he just had the law changed so that he can take his $500 million out of the company(SEE ARTICLE BELOW). I am mean that guy knows what is going on in the company better than anyone, do you really think that he would have a job change and a law change so that he could appear to be getting his money out legally if he thought the company's future was bright? The company's partners all made out like bandits, like one John J. Oros, when they sold the company to the public, they now have kept cutting costs, i.e. they pay the least on the street of all of the major bulge bracket firms, and now the CEO is selling all of his stock. My friends, I maintain that Goldman Sachs is in a world of hurt.
Its good to be back and I hope you all cheer for France on Sunday...those fucking lucky Italians had no business beating Austrailia even.
~Ben
Updated:2006-06-30 19:20:36
Paulson Can Sell Stock Holdings Without Penalty
By MARTIN CRUTSINGER
AP
WASHINGTON (June 30) - The Internal Revenue Service issued a regulation Friday that will allow its new boss, incoming Treasury Secretary Henry Paulson, to sell his extensive Goldman Sachs stock holdings without incurring a tax penalty.
The guidance from the nation's tax collectors clarifies that any executive divesting a deferred compensation arrangement to comply with government conflict-of-interest rules does not have to pay a 20 percent penalty that Congress imposed in a 2004 law.
Treasury spokesman Sean Kevelighan said that the IRS had been working on the new tax guidance but accelerated that effort so it could be released in time to cover Paulson.
Kevelighan said that before President George W. Bush nominated Paulson in May to succeed John Snow, the IRS had not made writing the new rule a priority because it would cover so few people.
"But when the caliber is raised to the secretary of the Treasury, it does make sense to accelerate it a bit," he said.
Congress in 2004 passed legislation that slapped a 20 percent tax penalty on executives who accelerate payments from certain deferred compensation plans. It was designed to punish executives who cashed out of such plans early.
These plans have enjoyed growing popularity among U.S. corporations because they allow companies to boost the pay of their top executives by awarding them extra cash or stock and stretching out payments to lessen the tax consequences.
The new IRS rule clarifies that any executive who has been nominated for a public office can accelerate payments under the deferred compensation plans and avoid the 20 percent penalty so long as the payments are being made to comply with conflict-of-interest rules.
The IRS felt it needed to issue the rule to clarify ambiguity in the law as passed by Congress.
Kevelighan said Paulson still will have to pay regular income taxes on the deferred compensation, but he will avoid paying the 20 percent penalty.
The White House announced last week that Paulson will sell all his holdings in Goldman Sachs Group Inc., including stock options that have not yet vested, to comply with conflict-of-interest rules.
Paulson, who worked for Goldman Sachs for 32 years, owns 3.23 million shares of stock, which would be worth around $480 million. His net worth has been estimated to be above $700 million.
Bush picked Paulson to succeed Snow in hopes he would be a more effective proponent of the administration's economic program. He won Senate confirmation Thursday and is expected to be sworn in as the nation's 74th Treasury secretary sometime next week.
Actually, Paul and I attended the most ridiculous party that either had ever been to in our lives in St. Tropez on the beach; it is almost to hard to explain but I guess I can tell you that there was a naked broad riding a unicorn on the dancefloor. We didn't leave the party to sun up and thought to call a couple of you unlikely bastards that were probably working.
Alright, enough about how Paul and I are chilling and you guys are working. I do have two alternative theories immediately for all of you. Kenneth Lay is still alive, and Goldman Sachs is going down, or at least in for a major fall. Paulson, like Mello and other insiders, know what Paul and I have been yelling, that the company is in trouble which is why he just had the law changed so that he can take his $500 million out of the company(SEE ARTICLE BELOW). I am mean that guy knows what is going on in the company better than anyone, do you really think that he would have a job change and a law change so that he could appear to be getting his money out legally if he thought the company's future was bright? The company's partners all made out like bandits, like one John J. Oros, when they sold the company to the public, they now have kept cutting costs, i.e. they pay the least on the street of all of the major bulge bracket firms, and now the CEO is selling all of his stock. My friends, I maintain that Goldman Sachs is in a world of hurt.
Its good to be back and I hope you all cheer for France on Sunday...those fucking lucky Italians had no business beating Austrailia even.
~Ben
Updated:2006-06-30 19:20:36
Paulson Can Sell Stock Holdings Without Penalty
By MARTIN CRUTSINGER
AP
WASHINGTON (June 30) - The Internal Revenue Service issued a regulation Friday that will allow its new boss, incoming Treasury Secretary Henry Paulson, to sell his extensive Goldman Sachs stock holdings without incurring a tax penalty.
The guidance from the nation's tax collectors clarifies that any executive divesting a deferred compensation arrangement to comply with government conflict-of-interest rules does not have to pay a 20 percent penalty that Congress imposed in a 2004 law.
Treasury spokesman Sean Kevelighan said that the IRS had been working on the new tax guidance but accelerated that effort so it could be released in time to cover Paulson.
Kevelighan said that before President George W. Bush nominated Paulson in May to succeed John Snow, the IRS had not made writing the new rule a priority because it would cover so few people.
"But when the caliber is raised to the secretary of the Treasury, it does make sense to accelerate it a bit," he said.
Congress in 2004 passed legislation that slapped a 20 percent tax penalty on executives who accelerate payments from certain deferred compensation plans. It was designed to punish executives who cashed out of such plans early.
These plans have enjoyed growing popularity among U.S. corporations because they allow companies to boost the pay of their top executives by awarding them extra cash or stock and stretching out payments to lessen the tax consequences.
The new IRS rule clarifies that any executive who has been nominated for a public office can accelerate payments under the deferred compensation plans and avoid the 20 percent penalty so long as the payments are being made to comply with conflict-of-interest rules.
The IRS felt it needed to issue the rule to clarify ambiguity in the law as passed by Congress.
Kevelighan said Paulson still will have to pay regular income taxes on the deferred compensation, but he will avoid paying the 20 percent penalty.
The White House announced last week that Paulson will sell all his holdings in Goldman Sachs Group Inc., including stock options that have not yet vested, to comply with conflict-of-interest rules.
Paulson, who worked for Goldman Sachs for 32 years, owns 3.23 million shares of stock, which would be worth around $480 million. His net worth has been estimated to be above $700 million.
Bush picked Paulson to succeed Snow in hopes he would be a more effective proponent of the administration's economic program. He won Senate confirmation Thursday and is expected to be sworn in as the nation's 74th Treasury secretary sometime next week.
posted by Not Sure if Al Gore or Global Warming is a Bigger Joke at
8:52 AM
6 Comments:
I did miss you while you were out of pocket. Loving it.
Can you guys please research this headline from the New York Times and tell me how this effects your thesis:
"Surprising Jump in Tax Revenues Is Curbing Deficit"
Please also share this with Mello.
Prediction: Congress will change the law on 2 presidential terms and Bush will be elected President again and will go down as the best president of all time.
I like the prediction!
That is a bold prediction.
Why would I root for the French to win anything? Have they ever won anything?
Try googling "French military victories" and clicking "I'm feeling lucky". Always a good time.
The French won the world cup in 1998 bro, not too long ago. I am pretty sure that if you remember that before Brittain was the world empire, France was the world empire. Napoleon definitely kicked alot of ass all around Europe, until his defeat at Waterloo, which btw allowed NM Rothschild to manipulate the market and increase his networth by 10 fold. I only have love for the French brotha.
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