Jonathan Weber, your reporting is so heavily biased and factually inaccurate that its comical. Your two new stories are go way beyond your reporting here, drawing specious conclusions, selectively picking out certain facts while ignoring others, and it reads more like a gossip column than a piece of journalism. If you want to be more like the National Enquiror rather than serious journalism, you are hitting your mark. I'm guessing that's why you are writing for start-ups like "Big Money" as opposed to the NY Times or the Wall St. Journal. You have so much more potential if you BALANCE your stories. Then they go beyond hack jobs.

I can buy a ski resort for $1 million? Good example of massive exaggeration typical in your pieces. CS issued CLOs (ie, the Yellowstone Club issuance was a CLO)? Wrong again, sir, they SOLD to CLOs. I don't even begin to have the time to point out all the factual errors in your articles. But then again, I'm sure you are aware of what facts you selectively choose to use and what you ignore.

Ouch!!! I hope you at least leave a note in the morning.

Right on, Dr Montana! I've followed all the blogs and stories and am glad someone finally called Jonathan on his highly slanted and snarky views. We have friends at many resorts across the West, many of which has closed or gone bankrupt. The common denominator is not which bank made the loan, its the fact that land values have dropped 60% to 100% depending on the location. Our friends tell us that raw land is nearly worth zero in many parts of the country. Jonathan spends a lot of time bashing the banks and characters in the play, but the only common thing among all these resorts is the utter collapse of the real estate market, particularly the high end second home market. Yet that gets one sentence (at most) in Weber's stories. Its almost as if it never happened if you read Jonathan's stories. He clearly has an agenda. Its interesting to follow, but at the end of the day you know he's not objective. Its like the saying "if it bleeds it leads." Its all about sensational exciting stuff - its not nearly as fun to blame things on land values dropping by two thirds.

Thank you for your comments Yeller Mom. I really like the part where he says he's helping out the judge - "offers some props to Judge Ralph B. Kirscher for steering the case to a fair resolution." Give me a break. The ironic thing is that Jonathan Weber is so hypocritical. I mean, writing stories about greed and such, and then writing the same story over and over again and pimping it to different publications. Is he doing it because he's looking out for the common man? No, get real, he's doing it to make a buck and because its easy to do. Otherwise he would actually do some original research and write some real stories. Hey, news flash Jonathan, there are some other really interesting stories out there on other master planned communities that have gone bust. I like reading about Yellowstone for the 47th time, but come on, go find something else very interesting for us to blog about. Here's one idea: someone invested $1 billion of equity in a master planned community (Landsource in Los Angeles) and lost it all within 6 months. Now there's got to be a pretty good story there! Just do us all a favor, and write the next big story as if you are a journalist, not a gossip columnist! Let us know both sides. We are hungry for truth, not your personal agenda.

JW called it, kiddies. Property values dropping matters much less if based on a solid economic basis, ie; don't borrow more than you have to back up with the reliable asset, and don't take money to invest in a project, ie; YC and use it for other purposes. Duh! How big did they think the bubble was going to get? Oh, and bubbles don't go POP?

NO excuses, folks. JW is not making millions on his reporting, in contrast to what ya'll are about that have ANY kind of sympathy for the greedy speculators and lenders. Let 'em eat cake.

Oh yeah, JW called it. Just look at his news stories from 2005 when the loan was done. Oh wait a minute, there were no stories from JW in 2005. Or 2006. What, no news stories in 2006? Surely he would have recognized the housing bubble by then. Or most of 2007. What a minute, what do they call that? Oh yeah, hindsight. JW called it all right.

Fact of the matter is that JW is looking out for number one, molding facts to best fit his case. Look, JW is just trying to survive like the rest of us. I like the guy, even if he has a loose relationship with the truth.

Mochsie, do the math. If you borrowed just half of your loan to value and property values dropped 50%, you are out of luck and have no equity value. I'm sure you predicted this and thus shorted housing stocks and made a fortune. However the rest of us are not as fortunate as you are. Everyone wants a scapegoat and Jonathan Webber does mighty fine in drumming up lots of folks to blame. But what about personal responsibility here, I mean, come on. If you invest in the stock market and it drops 50% are you going to blame your neighbor and broker? The fact of the matter was that we all went through an economic tidal wave and home values dropped 50%. THAT is the real story. THAT is also the story that Jonathan Webber completely ignores. PLEASE, show me any real discussion that Webber does on the housing crisis and the macro environment. To him, its just a couple key players that caused all this damage. THAT is misleading and why Webber does real damage to his credibility.

Hi Folks. Always happy to have factual issues pointed out, Mr. Montana is correct re the CLOs, I believe it was Highland Capital that put together the CLO funds and they were co-marketed with Credit Suisse. And yes, I confess to a little hyperbole, it might cost a little more than $1 million to buy a ski resort. But not much. In any event, as I said I am always eager to correct FACTUAL inaccuracies. I have devoted a lot of time and effort to understanding this story and I don't believe there are any of substance.

It's true I have been hard on Credit Suisse and some others in this drama. It's true there was a lot of demand for these loan products. But to say that no one is at fault because no one could foresee the real estate bust is ridiculous. Lots of people foresaw it, hedge fund managers and investment bankers are paid the big bucks precisely to understand this kind of risk, and even if you didn't foresee it, these loans was especially reckless, as was proven at trial. If I'm "biased," than so is the judge I guess.

Jonathan, what's reckless is your reporting. But then again, if Cross Harbor commits $115 million to buy the Yellowstone Club and agrees to spend another $75 million toward the Club, I guess that's pretty close to $1 million, eh? A little hyperbole? Only in your mind. When you stretch facts that far, its called something else: lies.

JW-

Finance is an art, not a science. For every person who said that that there was a bubble in real estate, there was another who said there was not. Let's not forget that the loan was in 2005, and the markets never broke down until 2007-08. By my account, the crystal ball you and others had, was off by two years.

I think that what many on this blog object to is YOUR "monday morning quarterbacking" the loan. Like previous posts have written, your objection to Blixseth and the YC was no where to be found when things were good. Now, you have chosen sides, which is far from objective reporting.

As far as I am concerned, you are entitled to your opinion, BUT you have been using your supposed "neutral" website to further an objective. I don't believe that you are on Sam Byrne's payroll, but its clear to everyone that there is no love lost for the Blixseth's, which again comes out in your reporting.

And you wounder why the different sides are using this blog to push an agenda. The only thing balanced in the NewWest ARE the blogs.

So JW exaggerated a little. But if someone told me that for a $100,000 deposit, some bank would give you a toaster or a ski area, I would say take the toaster....and your money elsewhere.

A 14 lot subdivision, in Bend, Oregon, based on Tolkein's Hobbit series, with one Hobbit House built, streets paved, untilities buried, and Umpqua Bank out $3.4 million, was sold last week by the bank for $750,000. Land does have value, and cash talks. The really good decisions are being made now, in the depths of the bad times. All the bad decisions were made in boom times, and the bottom feeders are going to get fat. Hey, that is business!!!! How many billionaires were made by the Resolution Trust Corporation that liquidated the the holdings from the failed Savings and Loan companies in the '80s? These are the good times!!! Right now!!! All the good decisions, the real money, is going to be made in the next year. Some smart guy is going to buy a bunch of land in the Yellowstone Club, keep the exclusiveness alive, and meter it out at a whole, whole lot more than he or she paid for it. The second guy in the subdivision ownerships makes the money. Some say the third. Blixeth should have known that. And probably did, and that gives credence to the conspiracy theorists who say this was all an orchestrated failure to bail his ass out. Who knows? Stranger things have happened elsewhere.

There really is a real estate crash. Oversubscribed and overbuilt and overpriced. We are still in the period which will seek the market level. If the US were so damned good at homebuilding, we should be offshore somewhere, building to L.A. county standards, and doing some good for the world. Export our skills and product to the rest of the world in exchange for all the crap we have to buy from them. But when you not only need a miracle, but depend on miracles to keep your business going, the business plan has some flaws. Blixeth knew the flaws, saw a chance to stuff some serious cash under the sofa, and did the CS dance. Where two greedy, selfish, egomaniacal entities met. It blew up. A real estate car bomb in the development built for the more rich of the population of wealthy people, with lots of collateral damage. The speculator terrorist did it again. Only this time, a judge thought it proper to admonish the players, and took umbrage at the greed he perceived driving the process.

If people who write for the Montana newspapers had done their homework on Blixeth, they would have found in his past a disturbing inconsistency in his bill paying. They would have found out his ability to scam the locals, and then leave the country. He was first a Roseburg, Oregon bartender nee timber speculator. And then he was a Portland timber speculator in the next boom years. And after the sale of Crown Pacific and watching that trainwreck from afar, he was a Montana timber speculator, and gee, another trainwreck has happened via the Taylor Burn land exchange that was so championed by the GYC enviros. I don't think they envisioned an exclusive resort would be the result. But it was, and those Enviros need to be castigated for their part in it. Shame on you. Pshaw. I thought you knew better. Only a week ago Al Gore told Congress loggers are not to be trusted with public land, and here you did business with one! Just think of the Yellowstone Club as being founded first by the Greater Yellowstone Coalition and their need to control some private land near the Park. Gallatin county got the YC and the elk some some room to dance with wolves. Does it get any better?

I don't think Tim is personally anything close to broke. I just imagine that a significant amount of the Credit Suisse "Bluesky from Big Sky" loan cash is stashed somewhere, along with other properties that are not going to be a part of any settlement with creditors. My interest is in who and where will be next?

It looks like the next project, already with some support and some very strident opposition, is a land exchange with some former Plum Creek checkerboard lands he owns or controls on Lolo Pass. His stated interest is to trade that for the best of the Clearwater NF managed lands on the Palouse Ranger District. The Rainman's wagon is off to Idaho now. Forewarned is forearmed. He is coming to a town in your state next. Grief is sure to follow.

A couple of points re the comments above:

1) Credit's Suisse's defense all along has been that criticism of the loan is monday-morning quarterbacking. It was not me who rejected that defense, it was the Judge. A lot of what seems to be taken as my criticism is simply my reporting of what the Judge has done. Similarly, it is the Judge that has consistently rejected the conspiracy theories re Edra/ Sam Byrne.

2) Part of my criticism of Credit Suisse is not about the original loans, but its bungled response to the loans going bad. I have criticized their tactics, and the tactics have indeed turned out to be unsuccessful. Not sure what's wrong with that.

3) Yup, I have my opinions, which are a product of many months of close coverage of the case and many conversations with most of the principals. One thing that is different about the style and approach of New West is that we don't pretend not to have opinions. That doesn't mean the reporting isn't fair or accurate. Again, it was the Judge, not me, who has had the harshest words for Credit Suisse.

4) Re resorts worth a million dollars, I was thinking more of Tamarack and Promontory ;-) Again I do plead guilty to hyperbole there, but my point stands.

5) Dr. Montana, I can assure you that there are much easier ways to make a buck than this kind of journalism. YC is a colorful story that impacts a lot of people and is a good example of certain things. My "agenda" is to tell the story, that's all.

Jonathan Weber,
Hello Kitty's comments are astute and correct; the truth is in the blogs, nowhere in the stories, which read more like heavy editorials than factual reporting. Bearbait is also on target, big money will be made as land values recover over the next decade. JW, I think your comment that lots of people saw it coming is ridiculous and a bit like throwing stones in a glass house for you to make. That's funny, I didn't see any articles you wrote about the housing crash in 2005. Here's a perfect example of how hypocritical you are:

So you were co-founder and Editor in Chief of the Industry Standard. You raised $30mm of investor money and then
LOST IT ALL. How do those investors feel, JW? You presided over the firing of 180 employees and the BANKRPUTCY of your company in August of 2001. Thats a pretty big crash and burn. Major egg on your face. Now, what's really funny, is that in all your stories and your bio you blame the crash of the Internet for the crash of your company ("Unfortunately, when the boom went bust, The Industry Standard went with it" is a typical line you repeat).

What about a little personal responsibility here, JW? I'm SURE you saw the internet bubble about to pop JW. I mean, anybody could have seen that THAT was the mother of all bubbles. Why didn't you do something? Could it be your lack of business skills, sloppy writing and heavy exaggeration that contributed to the bankruptcy of your Company? Now what if we found a few hack writers and started pointing out that your Company did MUCH WORSE that its competitors. After all, according to your own magazine in 2001, your magazine was ranked number one in LOSS of ad pages and revenues, out of every single magazine in the entire country. Some other magazines in your sector (Fast Company, for example) seemed to make it through the internet bust OK and are alive and thriving today. So was it the industry events, which clearly you should have seen coming, or was it the specific actions of you are your team that drove that Company into the ground? What if we threw a little of your hyperbole and exaggerations into the story, and made up some stuff like you typically do ("Jonathan Webber committed fraud at the Industry Standard, contributing to its downfall") Or maybe "Jonathan Webber's wild greed and reckless abandon drove him to create a business model which clearly could not be sustained. He should have seen the bubble about to POP, but he was blinded by his personal ambitions." Or maybe "Want to be number one? Jonathan Webber is number one, but infortunately what he's best at is LOSING MONEY."

Look Jonathan, I'm just having fun with you. I know the internet bust really was the reason your venture went bust. I am just saying use the power of your pen wisely, keep yourself and your views out of your stories, stop the massive exaggeration and write responsible stories grounded in fact.

Actually one of the great ironies of the crash of the Industry Standard is that we *did* foresee the bursting of the Internet bubble, and in fact warned about it all the time in the magazine. But we still weren't able to react to it adequately ourselves, for many reasons. As it happened, people did write plenty of nasty things about us, and about me, rightly or wrongly. It was also very educational in many ways and is part of why I am interested in bankruptcy.

I do agree with part of what you're saying though. There is a blame game that goes on in these situations, and it's not always fair. in general, I think it is safe to say that many people and institutions bear varying levels of responsibility. Maybe we can agree on that!

"Yellowstone Club: How to Go Broke on $375 Million" is how JW titled a recent article.

James Ledbetter, apparently a writer and editor of JW's failed Industry Standard, published a book in 2003 about the magazine's rise and fall, entitled:

"Starving to Death on $200 Million: The Short, Absurd Life of The Industry Standard."

Things that make you go hmmm.

I love the irony. You can't even make stuff up that good. I'm off to the bookstore to grab a copy.

SueNami, you are correct. As it happens, James Ledbetter is also the editor of The Big Money. Hmm!! But don't really know what is being implied by your comment.

There's certainly plenty of material out there regarding the Industry Standard, I'm sure Jim will be pleased to see a surge in sales of his book as a result of this blog! But the implication that bankruptcy of the Industry Standard somehow taints my coverage of this situation is specious. On the contrary, it helps inform it.

The cover story of the final issue of the Industry Standard was "Tech Bankers on Trial - The Party's Over, Now the Blame Game Begins." There are certainly some analogies between the bursting of the dot-com bubble and the bursting of the real estate bubble. But I do find it interesting that people who think I'm being unfair to Credit Suisse are responding with attacks on my integrity. I'm more than happy to have anyone explore my backround and reputation, as I've said before I certainly have nothing to hide. But it doesn't really have anything to do with the Yellowstone Club.

America!!! Now is the time to bayonet the wounded on the battlefield, and round up the messenger class for their just dues. The time to second guess the process. It is a precious freedom that we have.

I don't give Blixeth a pass, no matter why or how the news was disseminated by whatever means or writer. This deal was due to his slap-dash, egocentric use of other people's money, and his distain for blue collar types that his class is supposed to stiff at will, and he managed to lose a pile of Other People's Money. It seems each time he goes tits up on a deal, the pile is bigger. Must be that his half of something big is better than another's half of nothing. A nice plan for him, and not one that serves society well.

No matter how JW reported the story, someone will be unhappy. But the facts are being determined by a Federal judge, from testimonies developed by competent attorneys. Blue Sky Blixeth is perhaps wounded but certainly not devastated. He covered his margins. That OPM was sublimated in the rarified air of the Rockies, by financial sleight of hand, and now values have plummeted, is of no real concern to him. There has been no economic stake driven into his craven heart. He vill be baaaack, as Ahnnald says so succinctly. All that is left for New West is to carve some meat from the carcass of the story, and go on to the next personal opus of made-elsewhere-money showing up in Montana to do good things. Some times. Mostly.

In Oregon, we call it the Californication of Oregon. That is why we are the highest unemployed state in America outside of Michigan. Funny. We have the same kind of Congressional leadership and state leadership. The paper today says Caleeeforneeeeaaaaa is ungovernable. That is not good for Oregon's rose colored glass sellers.

My local Sunday paper is about how many new teachers are in the schools with the lowest test scores, most minorities, most kids in poverty. If the story is an attempt to show how undeserving poor minorities get the least capable teachers, without a look at teachers unions, contracts, and teacher mobility and seniority within the District, the story is only an indictment on false pretenses. Taxpayers in the state with an $8.45 per hour minimum wage (2nd highest in US) did not demand minorities settle here, most of them recent immigrants, legal and illegal, nor did Oregon taxpayers have a thing to do with union contracts in public employment. Teaching kids whose parents are illiterate, who don't value education, who use the schools as a public babysitting program, complete with three meals a day, can be deadening, tiresome, fruitless work. And transferring to a school with scores double that of the one with the high minority numbers, the high poverty numbers, is a wise personal choice. Perhaps a career saving choice.

Poor people make choices, some of necessity, and others by poor judgement, that keep them poor. Rich people make poor choices, too. But they know how to recover and go on. Either way, all kids are the product and responsibility of their parents first and foremost. If your kid is not learning, is way behind, is often tardy or absent, or aggressive or disruptive, that is not the teacher's problem. That is a parent problem. A parenting problem. The answer lies at home, not at the public school. People with means often take their kids out of the neighborhood school because of the lack of attention good kids get and the plethora of programs for the bottom half, and place them in private school. And that $13,000 per kid that is spent on public education can be had for half that in the private school sector. Why is that?

So the actions of Blixeth, et al, are the problem, and those who did not take a hard look into what they were getting into, information that was either there, or if not there, its absence a red flag, don't really have anyone to blame but themselves. It is not the journalist who caused the problems, as it is not the teacher who creates poverty and parental neglect. Teachers are messengers of education, and are so institutionally controlled and managed as to be automatic pilots of information, and if the message is not wanted, or sought, their time is a waste and they know it. They go elsewhere for fulfillment. Journalists are most likely no different. They are just reporting a story, hopefully in a way that will cause it to be widely read. JW got the job done. He is not responsible for the parties involved. And like anyone of us, he sees things from a different angle than you or I. Slanted, stilted, omnidirectional, whatever, you have to know that it all is reported that way, and it is up to you to discern what is and what is not. That is why cops interview all the witnesses, just to gain some sort of average idea of what happened at the crime scene. If you depend on one source, there is a good chance that is not exactly how or what happened.

So we ought to give JW credit for being there, for having an open blog site that brought out interesting takes on things as they unfolded. I will say New West did a fine job. No Pulitzer will be coming their way, but this isn't Pravda, either. And anyone who so desired could opine at will. A fine thought for Memorial Day, a day to remember all those who fought to preserve our right to blather, pontificate, gossip, plead, expose, our freedom to say what we think. Man, I thank my Dad and all who served in WWII, my Grandpa in the Spanish American War. We are blessed.

Bearbait, I agree, we are blessed to have freedom of speech in this great country of ours. Happy Memorial Day!

JW, no one is attacking your integrity if we are just reporting the facts, right? And I mean, you did in fact preside over the major nosedive and bankruptcy at The Industry Standard - it sounds like those facts are correct. Please correct us if we have any details wrong - we are always in favor of getting the story right. What's interesting is that you didn't take the opportunity to correct us on how much investor money you actually loss. I said $30 million, and it sounds from the book that you lost much, much more ($200 million, right?). I had no idea that you lost $200 million of investor's money. They had to be pretty upset. That's a perfect example of how you don't point out the facts when they are not in your favor. Selective ommision destroys your credibililty.

Sounds from the book that you guys had some pretty crazy and "lavish" parties. Good to hear that you were living large.

Here's why all of this is relevant to your reporting on this story: when you put yourself and your views in the story and start acting rightous, people want to know that they guy slinging the mud is a relatively clean guy. The problem, however, is that it sounds like you committed many of the same sins that Blixseth did. He spent money on boats and castles. You spent money on lavish parties and many other things (I think the book called it "reckless spending"). He lost investors about $300mm, you lost investors about $200mm. The Club was in bankruptcy, your company filed bankruptcy. There was the real estate bubble, you had the internet bubble. And alot of the news stories seem to hold you personally responsible for the demise of your company.

Dr. MT and Hello Kitty, Sour grapes dont taste so good for the TB and CS camp... Look at the track record for western resorts that CS loaned to in this manner??? It was a joke and was a part of the bigger failaure in the banking industry. You idiots are defending this? The jujdge and JW nailed it and your still spinning this shit around..Like the judge said "predatory lending" I get it and it's frustrating as to why some think their actions were right, moral or ethical. Good on you JW and Judge Kirscher!!!

It seems as though some lawyers for the losing team have nothing better to do than blog on NewWest and scrutinize JW's journalism credentials. Sore Losers!!!

In all fairness there, I think Dr. MT has JWs background as pretty accurate there. Its all right there on the internet. The parallels are interesting. I was unaware of his background. But I agree with JW's earlier statement, plenty of blame to go around for all the parties involved. This story is getting old.

JW

Clearly I have stqyed out of this but it does seem worth noting. Are the facts true about the 200m. Readers would be interested to know and I think if they are not true you would clearly reject these things. Anyway, it seems someone is merely trying to piece together some relevance to this story reporting of yours and vicious attacks against the bank.

So this is an excellent case study, maybe a teaching moment here for Mr. Montana (who I'm pretty sure is not from Montana) and Mr Blochhead (who has engaged in a very long deception campaign on this blog and has a direct financial interest in everything he is saying.)

Did either of you talk to any of the principals in the Industry Standard case? Investors? Employees? Anyone? Read any court documents? Attend any hearsing? Didn't think so. Your information is from a review of a book that you didn't even read and which itself is based mostly on second-hand sources. So, unlike my reporting on the Yellowstone Club and Credit Suisse, your opinons are based on nothing, or rather based only on your self-interested desire to discredit me. Mr Montana, if what I do for a living is so easy, you should try it sometime.

If anyone did any reporting, they would discover that the allegations above (that I was held responsible, that investors and employees were angry at me, the implication that I was making the financial decisions, that I was making millions, that it was "my" company etc.) are nonsense. Understand a situation before you write about it, and especially before you make judgements - that would be journalism 101. Oh, and maybe put your name behind personal attacks. That would be personal integrity 101.

BTW, Mr Montana, still waiting for you to point out all those supposed factual errors in my stories. I guess it's easier to change the subject.

Oh, and just to be clear, investor losses at the Industry Standard totaled about $30 million. Venture capitalists losing $30 million on a deal is not quite analogous to real estate loan investors losing $3 billion, or even $300 million.

BOOK ABOUT JW Industry Standard was titled: Starving to Death on $200 Million.........


JW: Are these articles about you? Please advise your readers as it seems there is some truth to your companies BK, employees laid off and lots of money thrown to the sea and investors who got the almighty shaft. Please explain to your readers why you so much do not like Banks, Investors, etc and how this has impacted your coverage and campaign against BLIXSETH and CS but favoured one investor CH? We are all curious as you after all are the EDITOR and CHIEF of NEW WEST and we should have a right to know why you delete certain blogs, protect or not protect bloggers who either support or do not support you and why you have run a media campaign only showing part of the truth? KITTY and DR. Montana seem to have your number, not in a mean spirit but mainly to show the readers just whom they are listening to on the articles. Its very relevant as you have been writing for one side and not the other. Even today you say the Judge ruled on the conspiracy theory of Edra and Sam, which as you know is not the truth, this has yet to see its day in court. Judge K did not want to hear it as it was nothing to do with the loan! so lets keep the facts straight shall we? Can you also comment for the readers the allegations Dr. Montana has stated about the 'LAVISH PARTIES' you threw at your investors expenses and the reckless spending under your control of the Industry Standard? How much did the investors lose? 200m as reported above? This is better than YC as it allows us to better understand you as EDITOR and CHIEF and your 1.5 years of reporting YC. Here are some links for readers to explore. After all JW, this is not an attack on you, merely reporting the facts. Given you are the EDITOR in CHIEF you opened yourself up to questioning and keeping the bloggers identity secret is important as if it did not you would have to hand over SHARKBAIT and everyone which would be a violation of our rights and most certainly many bloggers not being so happy correct?

Gag me. Find me the puke bucket. I am defending a lefty journalist. And I have to. There have been no conservatives covering the story as they are too concerned with ObamaNation. And frying bigger fish or so they think. The United Auto Workers have out Blixethed Blixeth, it appears. And, this YC deal is about the only incident of a bank being taken to task for predatory lending and irresponsible handling of loans. So I am a fan of New West's coverage.

One: If you don't like New West's coverage of the YC fiasco and the JW take on things, use that Google and read what others have said. NW can't be the only instrument covering the story. There have to have been some press release repeaters out there, and perhaps some local coverage. The Comical might have some coverage, or the Montana Standard or the Missoulian. That would let you see who along with Lee papers had a vision of the proceedings.

Two: So if New West can't cover the story because their Editor was once destroyed by the DotCom collapse, which his defunct magazine covered, who would? It does not appear NW is much more than a collection of stringers and bloggers, all collated into an internet form, and supported by internet advertising for mostly Montana goods and service folks. Has anyone thought that plain old economics called for JW to cover the story? His covering the story might be economically prudent in these tough times.

Three: I haven't read anything about the past bankruptcies of the Blixeth owned or run companies. I did see an article in today's Oregonian about the last company town in Oregon, Gilchrist, and how the mill and town was sold to Crown Pacific which soon went bankrupt. That was a Blixeth deal. And there are others before that.

You have to take everything as reported with a grain of salt, and read multiple takes on the same story to even have a chance of seeing some semblance of what the facts are. I just happen to like the New West reporting because of the self serving blogs and conspiracy theories, and bones to pick. I knew this would happen to the Yellowstone Club because the Comical was printing Blixeth's every word as the gospel. I emailed, at least twice in the last few years, the writer whose byline was always over those stories and told him to do his due diligence, because he was being scammed by a pro, and if he chose to believe that source, his pants were going to be pulled down someday. A year or so ago, his byline disappeared from that paper. And with it, the Blixeth pipeline to the world of journalism. In no way have I ever thought NW or JW was a shill for Blixeth, and that alone was reason enough for me to read and believe some of what I was reading. Reporters can get lazy. I don't think JW was lazy about this story. And, who better to peel back the layers of deceit than someone who has been through the process and had to answer the questions of a referee in bankruptcy? JW had a leg up on most of us in that he knew that inner workings of the process in a very personal way. We most likely benefitted from his experience. That made the Artful Dodger more transparent.

And here we are. The story is not over by a long shot. So who better to continue the layer peeling than JW and NW...I applaud them for the effort. Yes, the effort. It is work to cover the complexity of a deal like this. I will still be an interested audience. I imagine there are others like me. Keep on plugging, New West, 'cause there are at least two more belly up resorts that Credit Suisse was party to their demise.

puke, Bearbait you and JW are together admit it and you work for NW

CH and SB are Obama supporters and so is JW

JW sure seems to be getting defensive. Funny how you are willing to take no blame for your own BK, but want to place all sorts of blame on this one. The parallels are truly amazing. What a hypocrite!


I wonder if the NEWWEST investors are reading this stuff? Phones are off the hook!!!


Here is a GREAT quote from JW which somehow pertains to his BK and industry meltdown but not to YC/Blixseth/Real Estate Meltdown: And I quote from the article words by JW himself:

"There's 20-20 hindsight in these things," Weber said about The Standard's spending on everything from the Friday-night parties and lucrative salaries to the free sodas. "There are a lot of things people would point to as excesses, but they're immaterial in the large scheme of things."

So JW, Hindsight, seems like this was what CS and Blixseth said but you said BS to this reasoning but when it comes to BOSTON BASED CH you said it did not apply. Wonder why? IDG a shareholder with connections to BOSTON BASED CH?



A QUOTE FROM THE ABOVE ARTICLE:

On Monday, the case came to an unlikely closure: IDG bought most of the assets of the Standard -- its list of non-paying subscribers, its Web site, its trademarks, its electronic newsletters -- for $900,000 at an auction in U.S. Bankruptcy Court. AOL Time Warner's Fortune group of magazines, which includes San Francisco's Business 2.0, bought the list of paying subscribers for $500, 000, also assuming $2 million to $2.5 million in liability.

That will pay only a fraction of what the magazine owes. Bankruptcy filings show 3,500 creditors; the top 20 creditors are owed a total of $10.4 million.

WOW BOSTON PEOPLE KNOW HOW TO BUY BACK THINGS CHEAP. ANOTHER QUOTE FROM THE SAME ARTICLE:

For IDG -- International Data Group -- the auction represented a cheap way to get the magazine back. The $900,000 represents pocket change next to the $68 million that Time Inc. paid in June to buy Business 2.0, once one of the Standard's main rivals

Most of the U.S. are Obamba supporters bh. Welcome to America. We've seen where Bush supporters have gotten us.

I lived through good and bad times in the technology industry. The magazines of the time (Industry Standard, Red Herring, Wired, Business 2.0, and so on) all were funded with the idea that they would become the voice of the new economy, blah blah blah.

Well, the whole New Economy idea was right, but the timing of it was way off. So nearly every investor lost money if they bet on their horse to be the "Time Magazine" of "Business Week" of the new economy.

All the investors at Industry Standard were professional firms - same for Wired, etc. they all knew they were taking risks. That is the venture game. if you hit it, you eat well. The poor people who bought the loans from CS THOUGHT that CS DID THEIR WORK...ooops.

JW's quote was right - a couple 000 grand parties don't bankrupt a business. Borrowing 300M+, lying to your partners, cheating your wife, stiffing all your employees, etc. - THAT is the difference between the Internet collapse of Industry Standard and others and our beloved saga of the YC.

Hello Kitty,
Your comments are puhhhrrfect!

Thomas Crown, royally correct!

JW,
This is Dr. Montana reporting live from the NW blog. JW, it sounds like you are saying the book, entitled "Starving to Death on $200 million: the Short, Absurd Life of the Industry Standard" is generally not true. You know the facts here better than most all of us. Just trying to get to the truth, because its actually very interesting. So are you saying you disagree with the facts and conclusions of the book? Seriously, just tell us what you think.

You say its based on second hand reports, but the guy that wrote the book actually was a senior Editor in your London office. You say you knew the implosion was coming, but he and most employees sounded awfully suprised to get fired while on vacation. I thought this guy was your friend. Why would he make stuff up?

Why does he say you blew $200 million if you only blew $30 million?

You are correct, I am just going off of stuff that I have seen published everywhere, from the New York Times to your buddy's book. If these are not reputable sources, please let us know.

And by the way, I am probably more Montanan than you are, newcomer.

Geeez< some serious sore losers beatin the dead horse,,, The fat lasy has sung. You folks must be on the payroll with BH. Who else would really give two shits!! The rest of us are outside with our friends or family enjoying the weekend before the work week begins. Nooo you are busy googling trying to come up with a grand conspiracy theory against JW...Start your own anti SB, CH blog and see how much response you get...The vast majority agrees with JW and the judge...We support the outcome. Keep kicking the horse but it wont do you any good. Does the outcome of this court case potentially affect the ongoing suits that CS is involved in throughout the west. ie..Lake Las Vegas, Tamarack, Promintory??? I have a feeling they are very concerned...Since this case is over the anti JW crew has a lot of time on their hands...Fools

Got to love how NANCY pounds her chest and declares that MOST of the US are Obama supporters. Hey NANCY, it was like 52%!!! Is that MOST or just a majority? Maybe that's why NANCY is schleping log furniture in a resort town!!!

For GC, this case is far from over given the FACT that SB/Crossharbor have not come up with any money yet. Oh they promised you, but what are you going to do when the BIG plan does not materialize?

SB has to sell lots to make this work people, and NO ONE is selling lots. You have two choices at the YC...1. A rich benefactor buys the whole thing and makes good, or 2. The members buy the wole thing and make good. SB has no money left. You are just prolonging the enevitable.

Thanks Friend and GC and Bearbait for the kind words. A final word on the Industry Standard: plenty has been written about that situation and of course everyone is free to explore it and draw their own conclusions. I certainly stand by my record and remain proud of many of the things we accomplished. As I mentioned the experience does inform my reporting on this, in that I know a lot about the BK process, but the notion that there are meaningful analogies between this situation and the YC doesn't hold up to even the most elementary scrutiny. I don't have the time or inclination to debate the issue with people who have no real interest in what happened, only an interest in attacking and discrediting me. So, I won't be responding to any more posts on those issues, which have nothing to do with the matter at hand anyway. If anyone has real questions about the Industry Standard, or is simply interested, please send me an email and I'm always happy to discuss.

Also, commenters should be aware that "Dr. Montana" and "Yeller Mom" above are commenting from the same computer. Doesn't mean they are necessarily the same person, but pretty likely. This is against the forum rules (no sock puppets), not to mention dishonest and deceptive, so please knock it off. "Hello Kitty" and "Thomas Crowne" also share an IP address. Suddenly the crowd attacking me seems much smaller (and rather lacking in basic ethics).

bh is at it again..........and again.

Shocking.

Nancy,

Get a life as its not me but I do find it very interesting. you on the other hand need to retire. God knows how you keep your job. Sympathy vote i guess.

JW,

Why has the court issued an order on these matters listed below? I thought this deal was all done so why the hearing on the 1 June 2009? I thought CS lost so why do they want a hearing on their credit bid and a late offer/bid which came in on the 16th May 2009? This was the 'Famous Offer' which came in late. also why a hearing on objections to the PLAN if CH was the winner. sorry, us stupid, idiot fans of TB & Flynn wish to know as I am sure Nancy wants to know as well since she is equally bored out of her mind. Slow sales or rather no sales at SR give her time to blog liek the rest of us! finally, when is the Judge going to rule on the trial? Since you are the reporter on the ground please advise us all.


UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MONTANA
In re
YELLOWSTONE MOUNTAIN
CLUB, LLC,
Debtor.
In re
YELLOWSTONE
DEVELOPMENT, LLC,
Debtor.
In re
BIG SKY RIDGE, LLC,
Debtor.
In re
YELLOWSTONE CLUB
CONSTRUCTION COMPANY,
LLC,
Debtor.
Case No. 08-61570-11
Jointly Administered
with:
Case No. 08-61571-11
Case No. 08-61572-11
Case No. 08-61573-11
AMENDED ORDER
At Butte in said District this 26th day of May, 2009.
Upon review of the record in the above-referenced Chapter 11 bankruptcies and upon the
Court's own motion,
IT IS ORDERED that a hearing on the following matters will be held Monday, June 1,
08-61570-RBK Doc#: 967 Filed: 05/26/09 Entered: 05/26/09 15:00:48 Page 1 of 2

2009, at 09:00 a.m. in the 2ND FLOOR COURTROOM, FEDERAL BUILDING, 400 N. MAIN,
BUTTE, MONTANA:
1. The United States Trustee's Motion for Order to Appoint a Trustee filed February
26, 2009, at Docket Entry Number 454;
2. Various outstanding portions of Credit Suisse's Motion for Entry of Order
Authorizing (I) Modified Bidding Procedures, (II) Credit Bidding and (III)
Examiner to Evaluate and Report to the Court on Qualified Alternative Bids filed
March 16, 2009, Docket Entry No. 571;
3. Yellowstone World Club Chapter 7 Trustee's Amended Motion to Reconsider and
Set Hearing to Determine Amount and Classification of Claim filed May 14,
2009, at Docket Entry Number 892;
4. Motion to Allow Claims for Voting Purposes (Class 4) filed by Angus A.
MacNaughton, Edgar A. Rainin, Thomas W. Hook, and Yoav Rubinstein on May
14, 2009, at Docket Entry Number 893;
5. Robert Sumpter's Amended Motion to Amend Schedule 1.87 (Member
Assumption Schedule) filed May 21, 2009, at Docket Entry No. 934;
6. Robert Sumpter's Amended Motion for New Trial or to Alter or Amend
Judgement (Rule 9023) and for Relief From Judgment or Order (Rule 9024) filed
May 21, 2009, at Docket Entry No. 935;
7. Yellowstone L30, LLC's Expedited Motion for Order Amending Schedule 1.87
(Membership Assumption Schedule) filed May 22, 2009, at Docket Entry Number
941; and
8. Yellowstone 123, LLC's Expedited Motion for Order Amending Schedule 1.87
(Membership Assumption Schedule) filed May 22, 2009, at Docket Entry Number
942.

Looks like daddy's lawyers are milking........I mean working overtime. Gotta love the justice system.

Hello Kitty: I'm no bleeding heart liberal but Bushs approval rating was the lowest of any in history...Being fiscally conservative and socially liberal, there is no one party for me but I do know that Bush was asleep at the wheel for a while there. Anyway the reason we have been pro CH from the get go is because he can sell lots and people do trust the guy despite yours and BH's smear campaign. I know because several members are friends as well as the community in Big Sky and Bozeman. The sentiment is positive and pro SB/CH...If you dispute this simply ask around in an unbiased manner. It's that simple. In fact, the YC instantly has had activity since the judges decision.. Why do you continue to make this look bad. The phone has been ringing for architects and builders the day this went down. You are right it is far from over. The asshole's who are jealous and have plenty of $$$ for lawyers will do everything to tie this up in court and screw SB, hence the entire Gallatin Valley. However, they are only digging a deeper hole for themselves. SB will come up with the cash because the majority of the members are behind him with their checkbooks out, if need be. Plus, why the hell would SB bust out his checkbook before closing anyhow??? Are you that involved with his finances Kitty? No, so quit spreading Bullshit... I hope the judge laughs at the idiots trying to tie this thing up out of spite and jealousy. Inevitably there will be more words for the pro-TB crew to eat soon, not that your hungry for any more...

The issue with real estate development, right now and in the future for longer than we might want to admit, is that the market is priced at 60% of what it was pre-bubble burst.

So to sell lots, they will have to be priced accordingly. If you built a two million dollar house, it is now a $1.2 million dollar house. If you bought a $600,000 lot, it is now a $360,000 lot. And that base is the only thing anyone trying to keep the balls in the air, the ship afloat, can work with.

The re-sale real estate market is a bottom feeder deal right now. There is action at the bottom and inactivity at the top. It will take a year of present sales activity just to deal the foreclosed sector into the market, and we know that more foreclosures loom as good loans and people with substantial downs are forced to sell due to job loss or business slow down. Time is the issue.

The YC issue is to determine a level of amenities that is affordable, and assess dues accordingly. Lot sales cannot support the infrastructure. Use fees have to. And lot sales are not going to reflect what you paid three years ago. They have to reflect today's market. To keep the ball rolling, lots will have to be sold, and property developed and sold. That is a tough, tough deal in this economy. It will take all of YC working with the new owners in a realistic way for it all to work, which it can. It just has to be understood that it is a new world out there.

And I still have trouble believing what I see in the lumber market which is directly tied to how development is going at this time. Random length 2x4 under $145/mbf. That is 1970 recession prices. Only there is no $.029/gal gasoline, no $1.99 a carton cigarettes, no $0.85/hr. minimum wage, no $10,000 1930s bungalows for sale, no $3000 3/4 ton pickups, no $30,000 log trucks new, no new D-6 caterpillars for $23,000. But lumber is the same for that year. IF only there were $4/hr carpenters to build with it on $3000 lots.

bearbait---

I agree with you, everyone will need to row in the same direction. CH's plan of attack will be to focus intially more on hihg end production housing at the base to create critical mass/energy and incubate future custom lot sales and construction. The consumers of this product will be people who have existing lots or others who will consider purchasing them, but are deterred by the remoteness and lack of local hospitality venues commensurate with the club experience that is needed.

The other component will be a real effort to broaden the year round aspects of the club's market appeal by focusing on what has been viewed as an under-exploited resource---the summer season. The market thinks of YC as "a ski club" and needs to think of it as a ski and golf club.

All of the above will create a political test for the club, as it redefines its market demographics.

Like I've said before, I don't have a stake, but I hope for the sake of the club and the local economy the new business plan gets some legs under it.

Does anyone think the vendors will ever get paid? Who in their right mind would ever go back and provide services for this bunch?

The vendors are now being paid.

In full?

Hello all, a couple of comments:

All vendors should get paid in full if the ro-org plan is given final approval next week. It may take a few months though depending on the claim.

Re Blockhead's comment above, this is just a further effort to confuse, there is no late offer and the deal is going to get done as reported.

Regarding Blockhead in general: it's now very clear to me that he is not who he told me he was, and as the above sock-puppet comments illustrate, this forum continues to be vigorously gamed by Blockhead and others on behalf of certain parties in this case. This is not news to anyone who has followed these comment threads, but the extent of it is still surprising to me. I intend to write a story soon about all of this.

Dear Mr. Weber:

I currently live in Tokyo, Japan, but I own a very small condo in Bozeman. I have read and followed much of what you have written regarding the Yellowstone Club. I feel that the future success of the Club will have a great impact on the surrounding community, so I wish them great success. I hope that all the rich people that live there, invite their other rich friends to move in next door.

I find the news coverage regarding the Yellowstone Club very short and dry, i.e., Bloomberg Report, Billings Gazette, etc. You are one person who adds detail and helps us understand the players and the history of events.

So continue to keep me posted... Thanks

JW- I have been nothing but rational in my blogs and yet you take mine off? GC swears and attacks me for being some sort of puppet, and you leave that garbage up?

It's no wonder that people feel you have taken sides. The reason some of us have to switch names from time to time is because YOU censure our opinions, and block our posts.

shame on you

It is so painfully obvious that the Blixseths' minions are now just minor trolls wasting time. I mean it is so laughable. Going after JW and the Industry Standard? Wow. VC's lost $$? VCs' lose (and gain) $$ everyday. You seriously know nothing about venture capital or the tech bubble or startups.

Talk to any -- I mean any -- vendor, contractor, service provider to YC. IF they were paid, they were paid very late. Talk to to any -- I mean any -- real banker and ask them about the loans CS gave to all of these resorts and they will immediately point out the blindingly obvious conflict of interest between fees the individual CS bankers earned and their actual decision-making authority on the loans.

Many publications covered this including the WSJ. Funny, I don't see you going after Rupert for his paper's coverage of this debacle. Have you written to Rupert? Have you been on their reader posts?

Everyone, everyone knew we were riding a real estate bubble. To blame everything on that, the classic external locus of control argument is, once again, pathetic, and completely divorces self-responsibility and self-accountability from the equation, not to mention just good old-fashioned business ethics.

Blockhead, Yeller, Dr. Montana: why don't you have the courage, like real Montanans, like real people of the West, and just put your real names down when you're so pathetically trying to go after the messenger who has accurately covered this story.

But no, we won't see that because it's clear 'someone' in this play has decided to go after JW and NewWest. Someone has a vendetta. Again, stop wasting your time. The fact that JW has allowed such an obvious attempt at deflecting the subject is testament to the fairness, objectivity, and inclusiveness of JW and NewWest.

In effect, by allowing your absurd attacks on this forum, you are completely undermined. Such minions.

Bearbait: thanks for your balanced view.

JW: thanks for NewWest.

Ohh Kitty, i just re-read my blog and in no way did I attack you or swear at you. I said quit spreading BS that SB doesnt have the dough to close the deal. You are spreading senseless rumors and its annoying to everyone involved...JW, I hate to turn this into a ragfest, but go ahead and post her blogs. I can give it and take it. When SB closes the deal I will again make her eat her words. I apologize that I express my opinions bluntly and strait up, that comes from a lifetime of contstruction sites. I will try and lighten up as the present and future are pretty damn good now that SB's in the drivers seat...

GC...you are right on with your comments. One thing....I dont think that Kitty will ever eat her words, even when she is wrong. She, like BLOCKHEAD, will just disappear and reinvent themselves as someone else on the blog spewing the same rhetoric as before.

BLOCKHEAD...I didnt expect much else from you. You lost the bet...a fair, man to man, honest, forthright, square deal bet. But instead of being a man, you slithered away, maybe even under the belly of Tim who, which says alot about you. You have lived up to everyones expectations of you.

You are a blowhard, a chump, a fool, and to top off this dog crap sundae...not man enough to pay your bets off.

Not your words GC? I rest my case GC...about YOU.

"The asshole's who are jealous and have plenty of $$$ for lawyers will do everything to tie this up in court and screw SB, hence the entire Gallatin Valley"


"Are you that involved with his finances Kitty? No, so quit spreading Bullshit... "

Like I've said before. SB will run out of funding well before the market comes back enough to make a go of this, and you all will be left, slack jaws on the floor, wondering who the hell Hello Kitty was and why you did not listen.

Google up the Oregonian newspaper, and read the sunday front page story on the liquidation and bankruptcy of GI JOE'S, an iconic sporting goods chain that started in Portland.

The conspiracy theorists on the YC machinations, and the machiavellian twists and turns of high finance, are revealing in this story. Issues such as loaning money to a failing business so as to be in line to liquidate it, and a bank working with a liquidator to issue such loans. Actively loaning money to a business in trouble with the pure intent of taking over the business shows its head in this story. Interesting reading, and follows some of the lines of thinking about Crosswater, Credit Suisse, the Boys From Boston......a good read. And a cautionary tale of cowboy finance and legalized robbery.

JW,
I appreciate the info on posts from the same computer--I noticed a while back similarities in writing style, etc, and assumed one blogger with more than one name.

Bearbait has lucid thought processes, which helped me muddle through the blog osp here. I am thankful.

If this was Blixseth's first bankruptcy, if it was the first time he had tried to sell a donkey as a pack mule, maybe folks would be more understanding. It is not like a first time home buyer getting duped by a banker to a balloon payment and flexible interest! TB= flimflam man, with waning flim and flam....