I view the financial markets in terms of which theory is accepted by market players and increasing or decreasing in truth (or verisimilitude). The current dominant theory can be labeled “the sky is falling.” This theory and its effects will continue to increase in verisimilitude (degree of truth) in the days and weeks ahead. Short [...]

Banking expert Bert Ely: “I have run the numbers looking at the capacity of the industry to pay the tab. Assuming that bank insolvency losses don’t get way out of line, which I don’t think they will, then the industry can handle it. It’s not going to be cheap, but the banks can handle it [...]

This is a convergence trading strategy that is designed to generate returns independent of what happens to the overall market.  It does this by attempting to neutralize all or most market directional risk (aka systematic risk or beta) as well as sector risk. With this strategy the focus is on

Those in the financial press often write about a futures market that is “backwardated” or in “contango.” Very often, they get confused when explaining a market in light of these concepts, and believe it or not, this even confused Fed Chairman Ben Bernanke. Last February Bernanke basically said that the then backwardated term structure of [...]