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March 2009



Mortgage Meltdown Magic Manuscript found

March 24, 2009 – Comments (1)

All these months, I have struggled through numerous media stories trying to understand, when I found the Rosetta Stone:  [more]



An Open Letter to SecTreas Geithner: Please Resign

March 20, 2009 – Comments (5)

I know you are an honorable person. You are experienced, talented, and certainly worthy of your appointment in normal times, and would be counted as super qualified and one of the best SecTreas. You were president of the NY Federal Reserve Bank, and according to my economics textbook, that means that you were personally responsible for executing Fed and FOMC policy and decisions and actions. However, these are not normal times.  [more]



The Secret Formula That Destroyed Wall Street

March 19, 2009 – Comments (1)

The article documents a magic CDS evaluation formula and how it led to the current financial disaster. Dadgumit: I spent several evenings slogging my way through multivariate statistical functions, and I want credit for it, so I herein present my thoughts. The article appeared in Wired, and a hard copy of this issue proudly sits on my investment bookshelf next to the stuff on LTCM and Black-Scholes. However, it was the original equation listed in the article and academic paper that interested me, so I downloaded it and tried to understand.   [more]



naked shorts killed Bear and LEH?

March 19, 2009 – Comments (1) | RELATED TICKERS: LEH

Interesting story today on Bloomberg. There were a lot of unfulfilled trades associated with the collapse of these 2 stocks, and this is a prime indication of naked shorting, which is totally illegal, and also apparently unenforced by the SEC.   [more]



See? THAT is why gov’t should NOT be running big business

March 18, 2009 – Comments (0) | RELATED TICKERS: AIG , FNMA , FMCC

AIG “bonuses” and mortgage cram-downs.  [more]



CDS = No Problem?

March 13, 2009 – Comments (1) | RELATED TICKERS: AIG

I learned something new today about “Credit Default Swaps”, and I almost swallowed my gum.  [more]



Mark-To-Market: Finally, the Laxative Kicks In

March 11, 2009 – Comments (1)

Glad to see that regulators, congress, and the powers that be have finally headed my arguments and decided to change this (Ow! Stop kicking me under the table). There are noises that the rules on “Mark-To-Market”, “FAS157”, “Fair Value” or whatever may finally be changed. Why didn’t you geniuses try this in the first place?  [more]



More Morphine, Pretty Please?

March 03, 2009 – Comments (0) | RELATED TICKERS: BRK-B , KBE , VWEHX

There was one report of a quote (by a European, I think) that all the $T’s that the SecTreas and HedFed were throwing at the financial system was really just a short term palliative, and wait till the effects of the drugs wear off.  [more]

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