Lance on Oct 14 2008 | Filed under: Risk, Valuation, today's links
Yesterday was one fo the best days ever for the stock markets:
What does it mean? I think it ultimately depends on factors unrelated to the move itself. Econompic provides us with some context:
Obviously large one day moves in and of themselves tell us little about what is to come. So, let us at least look [...]
Lance on Oct 12 2008 | Filed under: Economics, Federal Reserve, economy
Yves Smith hits a theme I have been harping on, the Federal Reserve, and central banks in general, are making things worse in may ways by destroying the incentive for banks to lend or borrow from one another. She quotes James Bianco of Arbor Research:
The Fed’s massive and numerous liquidity facilities are making things worse. [...]
Lance on Oct 12 2008 | Filed under: Around the Web
Despite recent struggles, hedge funds have done relatively well. Why? One recent study shows they can (despite academic claims that you can’t) reduce their exposure to market risk, and increase it, in ways that adds to return. Who wudda thunk it?
Lance on Oct 12 2008 | Filed under: Around the Web
We have a particular fondness for Jullian Robertson’s offspring, the Tiger Cubs, when it comes to hedge funds. Sadly, they have struggled along with everyone else, though not as much in general. The NY Post reports on some of those hit hardest.
Lance on Oct 05 2008 | Filed under: Federal Reserve, Government policy, economy
I am often asked about individual bank stocks, especially JP Morgan. Generally my answer is that Bank of America, JP Morgan and a few others look to be likely survivors, but how profitable they will be I am really unsure.
JP Morgan is a special discussion, because I point out a rather astonishing fact, they have [...]
Lance on Oct 02 2008 | Filed under: Economics, economy
I have argued in the past that the Federal Reserve’s policies may be helping in some ways, but hurting in others. Way too much borrowing and lending is running through the Fed which is drying up lending between banks. It also reduces the need for banks to find reasons to communicate and trust each other, [...]
Lance on Oct 02 2008 | Filed under: Economics, Federal Reserve, Housing Market, economy
Tyler Cowen states his basic views on the crisis. My response in italics:
1. Glass-Steagall repeal was not a major cause of the financial crisis, nor was government-induced “minority lending.”
I agree on the first, the second charge has some validity, but only in terms very different than the typical charge.
2. We should use regulation to [...]
Lance on Oct 02 2008 | Filed under: Humor
A new distressed debt leveraged hedge fund has been launched:
Go visit the website for all their competitive advantages!
Lance on Oct 01 2008 | Filed under: economy
Let us look at one of the ways that we are being panicked unnecessarily, and why incidentally we can help many of these financial institutions in the fashion I discussed in my post on a potential alternative plan. In my next post we will discuss ways in which we are not being misled, and why [...]
Lance on Oct 01 2008 | Filed under: economy
I do believe we should be doing something as a nation, through our government, to avoid the not insignificant chance of a total financial meltdown. I have seen several things proposed that I find interesting, and I will get into them and other longer term issues in coming days. I had hoped to address this [...]
Lance on Oct 01 2008 | Filed under: economy
If you support the Paulson bailout plan that is. The New York Times has coverage.
The Senate proposal would cost more than $100 billion and extend and expand many individual and business tax breaks, including tax credits for the production and use of renewable energy sources, like solar energy and wind power.
The bill would also extend [...]
alpha Asset Allocation bailout banks Baton Rouge bear market Ben Bernanke credit crisis debt debt crisis deflation Economics economy Employment Federal Reserve finance fiscal policy fiscal stimulus Hank Paulson Hedge Funds housing Housing Market Humor Inflation interest rates investing Jeremy Grantham John Hussman Julian Robertson Louisiana markets monetary policy monoline insurers mortgages quotes real estate recession Risk Robert Shiller stocks subprime Taxes the economy Valuation Warren Buffett
The View from the Bluff |
| Featured |
| Money Manager |
Wall Street Journal- Wealth Wall Street Journal Economic News Wall Street Journal-Market news Wall Street Journal-Hedge Funds Abnormal Returns