Lately, I've gotten tired of following all the developments in the de-capitalization of the capital markets. This bailout and that bailout. This promise and that promise. Those bonuses and whose bonuses? Everything is such a mess and it is going to take a while for it to be resolved. I'm tired of analogies putting the financial mess into terms even I can understand.
I'm suffering from negative-data-fatigue-syndrome or NDFS for short. It's exhausting being inundated with and having to process unemployment figures, growth figures, money supply changes, trade data, current account balances, consumer spending numbers and all the random indices that come out every week. And I'm an information fiend. I like to be on top of it. But, 'it' has gotten so big that I would have to leave my job in order to track 'it' to the extent that it deserves. But I can't leave my job cause there's a recession going on.
I have a high tolerance for information so I am used to handling a lot at once, but it is starting to get ridiculous. I would rather be smacking you with information instead of having it smack me. Ugh.
Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts
5.4.09
20.3.09
First Pass
Ratings shmatings. Do credit ratings mean anything anymore? [Clusterstock]
US budget deficit balloons [Reuters]
Goldman profiting from AIG's collapse [Zero Hedge]
GS conference call regarding relationship with AIG [WSJ]
Surprising retail numbers in Canada [Report on Business]
Next year, I'm going to get Barclays to do my taxes [Guardian UK]
Just in case your Friday is going too well, read this [Daily Reckoning]
Give Bernanke a run for his money [San Francisco Fed]
US budget deficit balloons [Reuters]
Goldman profiting from AIG's collapse [Zero Hedge]
GS conference call regarding relationship with AIG [WSJ]
Surprising retail numbers in Canada [Report on Business]
Next year, I'm going to get Barclays to do my taxes [Guardian UK]
Just in case your Friday is going too well, read this [Daily Reckoning]
Give Bernanke a run for his money [San Francisco Fed]
14.3.09
13.3.09
Mixed Bag
I read Madoff's allocution the other and was immediately struck by the fact that he deposited large sums of cash into accounts at J.P. Morgan Chase. How did the bank not know that something was? Maybe they did... [Portfolio.com]
An interesting piece on magnesium bikes. My bike is a carbon fiber monocoque and I've heard of titanium bikes, but I've never heard of a magnesium bike [velonews.com]
I watched Cramer get trashed by Jon Stewart. Stewart did a good job of asking relevant questions and Cramer did a good job of not really answering them while at the same time admitting he may have made a mistake or two. I think CNBC is in a bad position. They can't decide whether or not they want to be an entertainment channel or a news channel. One could argue that they've managed a decent balancing act until now, but that their perceived position is changing.
It was easy to fly all over the world with the CEOs of various banks and go on rants about companies and yell at the government when the markets were going up. But ever since the market has gone down, CNBC is seen more as part of problem rather than an impartial entity reporting on the problem.
They would argue that in order to get the best stories they have to be tight with the Wall St. inner circle, that there is no other way and that this is part of the territory. Wall St. is run by insiders and so CNBC promotes and rallies behind the companies and people it wants to remain close to in order to maintain a competitive advantage over the other financial news organizations.
I can understand why Stewart thinks that CNBC contributed to the current financial mess. They were bullish up until the very last second and started up again as soon as they could. The part that bugs me, though, is that Stewart thinks that CNBC is responsible for the drop in his mother's retirement fund.
Why are investing and finance areas where it's ok to be ignorant? You don't drive a car with knowing the rules of the road, how to operate it and what the risks are. If you don't understand the risks involved, that's fine, just don't invest and instead, put all of your money into a savings account. If you do invest, you must be prepared that crazy stuff will happen. People must take responsibility for their actions. That is the key point. Everyone wants to be absolved of responsibility and play the blame game. Granted, derivatives got out of hand and everyone bet against them all being in the money at once. But, the probability isn't zero. It's larger than we'd initially think, but it's definitely not zero.
And don't give me some story about an investment professional telling you that your money would grow at 7% indefinitely and you just did what they said and now your portfolio is down 50%. You could have not invested. If you are shocked at being down 50% you should never have invested. No one forced you to. You did it because you got greedy just like the Wall St. CEO's that are taking all the heat (I am in no way defending what they did. They got super greedy and bet the farm without fully understanding the risks and that was stupid.).
You could have put your money under the mattress and not participated in any of the craziness.
An interesting piece on magnesium bikes. My bike is a carbon fiber monocoque and I've heard of titanium bikes, but I've never heard of a magnesium bike [velonews.com]
I watched Cramer get trashed by Jon Stewart. Stewart did a good job of asking relevant questions and Cramer did a good job of not really answering them while at the same time admitting he may have made a mistake or two. I think CNBC is in a bad position. They can't decide whether or not they want to be an entertainment channel or a news channel. One could argue that they've managed a decent balancing act until now, but that their perceived position is changing.
It was easy to fly all over the world with the CEOs of various banks and go on rants about companies and yell at the government when the markets were going up. But ever since the market has gone down, CNBC is seen more as part of problem rather than an impartial entity reporting on the problem.
They would argue that in order to get the best stories they have to be tight with the Wall St. inner circle, that there is no other way and that this is part of the territory. Wall St. is run by insiders and so CNBC promotes and rallies behind the companies and people it wants to remain close to in order to maintain a competitive advantage over the other financial news organizations.
I can understand why Stewart thinks that CNBC contributed to the current financial mess. They were bullish up until the very last second and started up again as soon as they could. The part that bugs me, though, is that Stewart thinks that CNBC is responsible for the drop in his mother's retirement fund.
Why are investing and finance areas where it's ok to be ignorant? You don't drive a car with knowing the rules of the road, how to operate it and what the risks are. If you don't understand the risks involved, that's fine, just don't invest and instead, put all of your money into a savings account. If you do invest, you must be prepared that crazy stuff will happen. People must take responsibility for their actions. That is the key point. Everyone wants to be absolved of responsibility and play the blame game. Granted, derivatives got out of hand and everyone bet against them all being in the money at once. But, the probability isn't zero. It's larger than we'd initially think, but it's definitely not zero.
And don't give me some story about an investment professional telling you that your money would grow at 7% indefinitely and you just did what they said and now your portfolio is down 50%. You could have not invested. If you are shocked at being down 50% you should never have invested. No one forced you to. You did it because you got greedy just like the Wall St. CEO's that are taking all the heat (I am in no way defending what they did. They got super greedy and bet the farm without fully understanding the risks and that was stupid.).
You could have put your money under the mattress and not participated in any of the craziness.
6.3.09
First Pass
This can't be good. [dshort.com]Black Swan hedge fund closing because they're are making too much money. [Bloomberg]
Rogue traders at MER before BOA bought em? [Bloomberg]
So timely. If you haven't read this yet, now's the perfect time. [Asymmetric Information]
More on BOA's lack of due diligence. [ftalphaville.com]
4.3.09
More Michael Lewis
3.3.09
FIrst Pass
It's refreshing to see that someone had a good year. I guess with fewer players in the market it's easier to make a profit. [Bloomberg]
Low nat gas prices are trickling through and producers are beginning to shut-in. [Oil and Gas Journal]
Debt begets more debt. [The Australian]
Low nat gas prices are trickling through and producers are beginning to shut-in. [Oil and Gas Journal]
Debt begets more debt. [The Australian]
1.3.09
A Look Around
A big loss, matched with more gov cash at AIG. [Globe And Mail]
Sorry Eastern Europe, we've got our own issues. [WSJ]
Oooooh, and that's a bad miss. [Reuters]
Think Q4 Canadian GDP will be as bad as the US? [Bloomberg]
Sorry Eastern Europe, we've got our own issues. [WSJ]
Oooooh, and that's a bad miss. [Reuters]
Think Q4 Canadian GDP will be as bad as the US? [Bloomberg]
25.2.09
Really? Really?
The guy who runs Bank of America thinks that acquiring Merrill and Countrywide was a good idea and will pay off in the future. Huh? What does he know that we don't?
24.2.09
Early? Or Late? Pass
Who's with Rick? I am. [FreedomWorks.org]
What's a copula? [Wired]
Mortgage payments are beginning to converge to rent. [WSJ]
The gas lobby. [WSJ]
What's a copula? [Wired]
Mortgage payments are beginning to converge to rent. [WSJ]
The gas lobby. [WSJ]
21.2.09
End Of The World Puts
Warren Buffett sold put options that would force him to pay $40B if various stock market indices go to zero. When he sold them, he figured that they would expire worthless and he'd keep the premium. However, these indices are now plunging and these options are becoming less out-of-the-money. Since these puts are MtM, as the markets plunge and volatility increases, Berkshire must take balance sheet right downs.
17.2.09
First Pass
IEA: Oil Going Right Back To $150 Again [Business Insider]
Stanford investigation sparks fears in Antigua [Reuters]
U.S. oil falls to $37 on demand concerns [Reuters]
An overview of the proposals to fix the financial system [Vox]
Markets, dollar tumble in early trading [Globe And Mail]
Oil Falls Below $36 as Deepening Recession Cuts Fuel Demand [Bloomberg]
Lloyds facing further writeoffs as HBOS loan losses mount [Guardian]
US shares dive on doubts over rescue stimulus [Times UK]
Stanford investigation sparks fears in Antigua [Reuters]
U.S. oil falls to $37 on demand concerns [Reuters]
An overview of the proposals to fix the financial system [Vox]
Markets, dollar tumble in early trading [Globe And Mail]
Oil Falls Below $36 as Deepening Recession Cuts Fuel Demand [Bloomberg]
Lloyds facing further writeoffs as HBOS loan losses mount [Guardian]
US shares dive on doubts over rescue stimulus [Times UK]
14.2.09
I Think I'm In The Wrong Line Of Work
This guy and his hedge fund made 67M USD in less than half an hour shorting Lloyds Banking Group. The stock tumbled huge after a company it recently took over was about to report a massive loss. It's not certain that he's even closed out his short, so there may be more to be made.I like seeing short sellers do well; especially in this market where shorting was banned at one point. It helps to keep the companies 'honest'.
Stocks also seem to have massive moves downwards way more often than upwards. Nice to see someone capitalizing on some company making a fool of itself.
Paulson May Have Made $67 Million in Lloyds Plunge [Bloomberg]
13.2.09
First Pass
Jim Chanos, SAC Snared In Wall Street Research Scandal [Cluster Stock]
Europe Economy Collapses [Cluster Stock]
Madoff: A Family Affair? [Portfolio.com]
European GDP shows worst contraction ever [Globe And Mail]
Nearly 700 at Merrill in Million-Dollar Club [NYtimes]
Europe Economy Collapses [Cluster Stock]
Madoff: A Family Affair? [Portfolio.com]
European GDP shows worst contraction ever [Globe And Mail]
Nearly 700 at Merrill in Million-Dollar Club [NYtimes]
12.2.09
11.2.09
10.2.09
Canada Is Still In Relatively Good Shape
Worthwhile Canadian Initiative
Canadian banks are typically leveraged at 18 to 1--compared with U.S. banks at 26 to 1. [Newsweek]
This stands out:
Canadian banks are typically leveraged at 18 to 1--compared with U.S. banks at 26 to 1. [Newsweek]
This stands out:
The Toronto Dominion Bank, for example, was the 15th-largest bank in North America one year ago. Now it is the fifth-largest. It hasn't grown in size; the others have all shrunk.
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