30
May
2008
Will another large securities firm fail?
Posted by John as economy
A new report from Moody’s Investors Service explains that the biggest systemic risk to the $62 trillion credit-derivatives market is not its size and complexity but the potential failure of a large securities firm or investment bank which is acting as a counterparty. A bank collapse could damage the operational integrity and pricing in the [...]
07
May
2008
And Now: Introducing The Positive Side Of Globalization, Economics, & Finance…
Posted by John as strategy and tactics
It is always important to keep everything in context. At the present moment the majority of people are focused on the “negatives” in our world, and presently, things are indeed negative both politically and economically. It is also important to be objective and see the world as it truly is — understanding the [...]
07
May
2008
96% of Stockton, CA homeowners who purchased in 2006 are under water
Posted by John as economy
My thoughts: The bottom in housing may not be here yet, and will probably take longer to achieve than most expect. But news like this means we are getting closer….
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You bought at the peak of the market. You put next to nothing down. (Maybe you even took out one of those 105% LTV [...]
06
May
2008
Returns are anything but normal
Posted by John as strategy and tactics
Much of modern finance and risk management is built on the concept of efficient markets and the “bell curve” or symmetrical normal distribution. However, out in the real world things are a bit different. Over the years many have treated the so called “black swan” events as something that is an anomaly. [...]
04
May
2008
Foreclosure Rage: (former) homeowners take out their anger
Posted by John as economy
Foreclosed homes are being damaged at a high rate as homeowners take out their anger on houses before they are forced to move out, increasing the costs for the banks that take back ownership (because they have to sell at a lower price as the new buyer has to pay for repairs.
Is this just another [...]
03
May
2008
Buffet says Fed did the right thing…
Posted by John as Market Action
It’s probably because he benefits so much from the boom-bust cycles and bailouts that the Fed creates, but Warren Buffet is not bothered by the moral hazard, inflation, and debasement of the dollar
02
May
2008
Warren Buffett To Go Shopping For Bargains
Posted by John as Investing & Trading
Berkshire Hathaway Inc. Chairman Warren Buffett, who has used dozens of acquisitions to beat every major U.S. stock index, is poised to extend his lead with more than $40 billion to spend as the credit crunch sidetracks other bidders.
With the U.S. on the brink of recession, investors expect Buffett to deploy Berkshire’s cash to scoop [...]