Monthly Archives: December 2008

Best Compensation Idea of the Year

December 19, 2008

Goes to Credit Suisse: The bank will use leveraged loans and commercial mortgage- backed debt, some of the securities blamed for generating the worst financial crisis since the Great Depression, to fund executive compensation packages, people familiar with the matter said. The new policy applies only to managing directors and directors, the two most...
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Bad Housing Solutions, They Keep Coming

By Lance Paddock

December 19, 2008

I have already given the only measure that I think makes sense when it comes to the housing crisis, but people keep coming up with others. Like most of the ideas coming out to deal with this crisis, Glenn Hubbard and Charlie Mayer try to convince us that the way to deal with our...
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Value and Regression

By Lance Paddock

December 10, 2008

Over at dshort.com there is an interesting look at valuation and regression to the mean (click image to link to larger version) The peak in 2000 marked an unprecedented 160% overshooting of the trend, which is double the overshoot in 1929. The index has been above the trend for 17 years. We also see...
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Step Right Up! It’s Your Bailout Too!

By Lance Paddock

December 3, 2008

I hear repeatedly from our fellow citizens “where is my bailout?” For those who have been wondering the fine journalists at Vanity Fair have found the paperwork so you can begin applying now for, as the application says, “free government cash.” (Click image for Large Version.) Download article as PDF
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Our Government’s Economic Policy Explained

By Lance Paddock

December 2, 2008

By Fred Thompson. With only the most minor quibbles I not only laughed, but cried. Pretty much dead on: The sad thing is that it isn’t only “liberal” economists, it is the meat of the profession and plenty of so called “conservative” politicians. Hat Tip: McQ Download article as PDF
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