Fed Buying Is Having Profound Implications. Bond Vigilantes Have Been Selling Heavily and May Continue. That Means We Still We Won’t See Much of an Impact on Interest Rates. Paul Santos at Seeking Alpha claims you don’t need to worry about the bond vigilantes anymore. I, personally, have always been a big fan, and think they will return. But hey: This is Mr. Santos’ opinion piece, not mine, so I’ll let him cut to the chase. Santos doesn’t claim they’re in hiding. He simply claims they’re gone. Santos asks: “So when did the mass killings take place in the U.S.?…
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You’ve probably already read this story—Facebook Co-Founder Renounces U.S. Citizenship in Advance of IPO, Saving Millions in U.S. Taxes —heard about it on the radio, or seen it on TV. But Paul L. Caron of The TaxProf Blog has done a remarkable job of aggregating all the media responses to the story from about 20+ outlets, and linking to previous posts this week on the developing story. On Thursday: Bloomberg: Schumer Proposes Tax on People Like Facebook’s Saverin: U.S. Senator Charles Schumer proposed legislation that would impose a 30% capital gains tax on people like Facebook co-founder Eduardo Saverin unless…
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The most highly anticipated IPO in history didn’t put on much of a show. Facebook closed today within decimal points of its opening price of $38. Even so, the company’s market cap is higher than McDonald’s or Pepsico. Espen Robak is the president of Pluris Valuation Advisors, where he studies and values private companies trading on the secondary market. Derek Thompson at The Atlantic talked to him this morning right as Facebook trading began. One of Robak’s first points was “The people who bought in the secondary market came in right around $44. Those shares are locked for 180…