2008-10-07

In investment management, your revenues are all fees and in slothful long-only, it is almost always exclusively AUM-based, not performance. So your revenue rises when the market isn't crapping the bed. The problem is that the market is now a full 1/3 lower than it was a year ago, so your company's revenues are (ignoring any inflows or outflows) also a 1/3 lower. And now you are wondering what it will be like to live with your parents again, because your company is going to have a problem paying the light bill.

Exit options: fixed income is kinda fuxed... but distressed stuff looks pretty great!!!

A movie idea: the premise is that financial crises are diseases and you can get infected, and thus we have "OUTBREAK 2" (it needs an exclamation point somewhere and a subtitle that includes the disease name, something like finanthrax). I imagine it is transmitted by a lot of different means - the opening scene shows a coughing trader hanging up the phone so you need to wonder if the guy on the other end of the phone caught it from trading with that guy, someone at the CDC who is working on the case gets infected with finanthrax (they start hemorrhaging money and lose their home), and they need to quarantine financial services firms (this could be the emotional center of the film - desperate, haggard people in shirts and ties in low lighting, lots of anger and crying). A CDC guy and a bank examiner rush around, trying to identify Patient Zero, and maybe they fall in love. Cast ideas: need to make a role for Rosario Dawson. Tim Matheson and John Slattery, probably. Alan Arkin or Ben Kingley? Why not both? Also want Julie Bowen and Sabrina Lloyd.

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