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Posts Tagged ‘Financial Markets’

Its called “Inside the meltdown” and full of left-liberal pundits, but it is a pretty good description of what went on during those crucial months last year.
Here it is…

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House passes the granduosly named American recovery and reinvestment plan, and, it is irrelevant at this point. For this plan is not far sighted enough nor does it change the game in any way. But don’t blame the president for this, for he was just working with in the boundaries of consitution. Fact is this [...]

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Here is the link to an informative article on nytimes, detailing the genesis and circumstances associated with the quantification of risk in a portfolio.
The book mentioned at the beginning of the article “Against the gods” is a part of a series of excellent books by Peter L Bernstein: Capital Ideas, Against the gods and The [...]

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I’ve seen enough of the articles, which say 2008 is forgettable or imply this…
Here’s a sample.
Newyork Times:
Markets Limp Into 2009 After a Bruising Year

AP:
Stocks gain as investors try to forget 2008
SanJose Mercury News:
2008: For stock investors, a year to forget
Atlanta Journal Constitution:
Good riddance to 2008; it’s time to start over
Boston Herald:
2008: A year to forget
The [...]

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So GS and MS want to become bank holding companies now.
This needs to be thought through properly before any comment is made.

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Dow is currently about a 150 points down. Over the next couple of days there may again be volatile swings in stock market. Such volatility may be used to pressure congress to pass paulson’s plan. Volatility in the stock market is natural in such troubled times and should not cause a panic among the congressional [...]

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The bailout plan is not yet passed by the congress and oil is already above $104.
Why?????
Here’s the logic, US government is giving a bailout to the wall street, but FED has to create those $700 billions. Which means, huge amount of deficit in US. That implies US currency dollar will loose its purchasing power and [...]

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Do read this post on bailout plan.
Congratulations on this great first post.

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So federal government will buy all these unsellable mortgages from financial companies. And then will ask these very same financial companies to manage these mortgages for it.
I wonder if they could keep a straight face when they were thinking that up.
What next? No-bid contracts for managing these mortgages?

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What is with the time horizon of the bailout? Check this link.

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Apparently, democrats want to limit executive compensation as a part of the bailout plan according to this report in the new york times. Apart from being symbolic, it is silly, divisive and very difficult to arrive at. Unless it is being used as a negotiating tactic, this proposal has no place in this law.
The really [...]

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I know that’s not supposed to be the reaction to this bail out plan. But i do and here is why.
The bailout plan asks the amount of money, which hopefully, will allow all the financial institutions to take off unsellable mortgages off the books. All the following points arise.
1. The $700 billion dollars is not [...]

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This is an excellent speech by John C Bogle, of “Vanguard” fame.
I particularly like the way he corrects claims on “Value Investing” as well.
Of course, we’ve been assured that “value investing wins” (not “has
won in the past”), especially in troubled markets.
It may sound orthodox, quaint and probably even puritanical to some, but to me that [...]

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Here’s a post by Paul Krugman in nytimes on crude cost and speculation.
While i agree with the logic of this argument, a couple of curious points that should have been taken into account are as follows:
1. Assuming OPEC nations raise their production substantially, shouldn’t crude price go down? The natural response to crude price going [...]

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Today the Dow Jones fell by about 390 points and simultaneously crude oil went up by about $10 per barrel. As usual with the market analysts, we have some cookie cutter explanations. Jobs report showing a fifth straight month of losses is supposed to have triggered a wall street collapse, even though the actual fall [...]

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Check out these video’s on CNBC. Nobel Laureates in economics discuss US economy on CNBC, which despite being a business channel, never had this quality in its programming in years…
http://www.cnbc.com/id/24311464
http://www.cnbc.com/id/24313079
Check out all the videos. Great stuff. Generally speaking, i am not a huge fan of CNBC. I think they are just a bunch of cheerleaders [...]

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Given the way most economic predictions are going awry, it is safe to say we are in unknown territory. Trodden though this path is, it pays to briefly examine things that went off the predicted course, since this will allow us to break away from conventional wisdom in charting the way ahead.
When stock market [...]

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The Education of Ben Bernanke – New York Times
Here’s a brief but pretty good outline on the evolution of Federal Reserve.  Ron Paul fans should read this outline to understand their own arguments better!!!

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This article in latimes today is a very interesting take on what is noticed over the past decade or so. Any one with a partial understanding of financial markets and their history would have remembered times in late ’80s while reading this article. “Liar’s Poker” and “Bombardiers” are non-fictional and fictional accounts respectively of that [...]

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