New regulation is certain. The failure of private firms to self-regulate in a manner that would provide for the long term stability of the financial system and our country is apparent. The ability for corporations to choose the amount of regulation imposed upon them by changing the form of their identity has provided an enormous [...]
There really is just so much that stinks about this whole bonus mess. I think John Stewart said it best when he went head to head on his program with Jim Cramer and stated that we are a nation of workers and we shouldn’t be disillusioned by this idea of easy money. The division of [...]
The idea for today’s post was inspired from an article I read in The Economist which stated, “…that trust in a modern economy has evolved to the miraculous point where people give complete strangers sums of money they would not dream of entrusting to their next-door neighbor.” When I sat back and pondered on this [...]
Readers,
I apologize for the long delay since the last posting on this blog. I had been traveling in South America and didn’t have the access and/or time to keep up with what has been going on the the markets. It is my intention to return to publishing postings on a regular basis. On this note, [...]
Today’s market is rampant with declining securities and currency fluctuations. How can companies protect themselves versus currency fluctuations that can have devastating effects on smooth operating margins? One way firms can weather these adverse effects is to hedge their portfolio using specific securities that will effectively provide insurance for their [...]
It almost goes without mentioning that the current financial situation will affect the future trends of the banking industry. The landscape of the banking scene has changed dramatically over the last year and even weeks time. Giant names such as Merrill Lynch, Bear Stearns, and Washington Mutual are effectively insolvent. Seven hundred billion dollars has [...]
Hey Readers,
Of the myriad of arguments presented for and against the new proposed bailout plan, the criticism that the large amount of money issued into the system could trigger much higher inflation is an interesting one. Of course, it is well known that if the Fed actually monetized the new amount and created more money [...]
Understanding the current financial crisis necessitates picking up many new financial terms. “Short selling” has been one of the frequently used terminologies you may have heard as the news struggles to keep up with all of the opinions for explaining what is happening in the market. I thus found it appropriate to write today’s [...]
Have you ever heard of the Glass-Steagall Act? Well, we are all more likely to hear about it in the coming months as acts of regulation are surely on the horizon. The Glass-Steagall Act was set up originally in 1933 and created the Federal Deposit Insurance Corporation (FDIC) and more importantly, in respect [...]
I have been recently roaming cyberspace in search of interesting finance blogs and forums to get new ideas for posting topics and have stumbled upon a very cool site. The site is called Wilmott and it is a website completely devoted to discussing and sharing ideas related to quantitative finance, a field of finance [...]