Excellent CNBC and Cramer Yesterday

CNBC

Excellent long interviews with the top short sellers Chanos, etc. and Cramer's discussion of them. And his interview with the YUM ceo.

This is where CNBC is so much better than in the old times. On the other hand we now have classes of investors that did not "exist" in past crises. Private equity, huge and more numerous hedge funds; colleges and pension funds devoting a large portion to the short/counter or random side.

William Ackman

Made 22% return in 2007. Up 6.4% in January.

Runs Pershing Square Capital Management hedge fund.

Has shorted -- is still short -- the holding companies of the bond insurers.
www.valueinvestingcongress.com (not sure)

Discusses Buffett's proposal of today.

MBIA, (MBI), Ambac Financial (ABK)

We think the regulators will stop insurance subsidiary dividends from going up to the holding companies, by the end of the year. (Implied -- bankruptcy)

MBIA -- has or has not triggered covenants. Ackman said this, but concedes that this may not have happened.

Next 10-15 years (the longs say) $1 billion of "revenues" to be earned by MBIA IS NON-CASH. "Doesn't do you any good." Not helpful. Vast majority is not cash.

$5.75 billion under management.

Ackman is quite informative. Aaron Bernett's questions excellent. Melissa's too.

Arbing overstated revenues for the bond insurers to keep banks from taking write-downs is bad. People taking money out one one pocket and putting where there are lower standards, not good for the investors.


JIM CHANOS

He goes way back -- before any of the questioners know. Baldwin, I believe.

Short Moody's since last year. Kynikos Associates Managing Partner.

I put forth at "the pane" today (Hudson Institute) -- safe harbor where all the banks do not have to sell at the same time as is now the case under the Basil Accords, etc.

Make the regulators disclose all the information they get under Regulation FD.

Those who were short the banks and long emerging markets "paid the price" in January.

What crack the private equity

MBIA Bonds @ 20% -- a good buy.

ROBERT KESSLER

Treasuries were the best performing assets over the last 6 months.

Does not like Muni Bonds because of credit risk, emerging markets, anything with credit risk.

Other recessions, Orange County; Big Mac in New York.

Probably no risk in U.S. Treasuries.

Bank of England will lower rates.

Likes Eurodollar Futures, Eurobor Futures, Sterling LIBOR Futures.

RICK SANTELLI

Past recessions are ancient history.

Don't want to be the last guy sitting in the chair holding Treasuries.


CRAMER ON THE ABOVE

MBIA bonds yielding 20%. With Chanos's short the common, a great hedge.

Chanos -- a rigorous thinker.

Ackman -- likes him as well. Discussion on his retail longs (which are not the story with him). Luke warm.

Eddie Lee -- mentions.

CRAMER'S TRADE

GM!!!!!!!