Archive - Sep 24, 2009 - Blog entry

What do you have to do to make $675,000 at Freddie Mac? Not much. Why is the gigantic piece of dead wood hiring big buck talent? Big money politics, of course.

NOTE: AFTER I WROTE THIS ADDITIONAL DETAILS CAME OUT: KARI GOT A $2MM BONUS AND A GUARANTEE OF $3.75MIL!!!!

It's amazing how a year after the worst financial crisis in post-war history, when hedge funds were closing the gates of hedge hell, things have not changed on Wall Street.

The price correlation between equities and bonds of late has some argue that typically, if equities are trending higher, then bonds would head lower, and yield would be higher, due to concerns of higher inflation. So, the fact that bonds and equities in general are both firm seems to beg the question - which rally would end first - equities or bonds?

"… excess savings flowing in from Asia and the reckless lowering of interest rates by the Federal Reserve Board; the relation between executive compensation, short-term profit goals, and risky lending; the housing bubble fueled by low interest rates, aggressive mortgage marketing, and loose regulations; the low savings rate of American people; and the highly leveraged balance sheets of large financial institutions." - Richard Posner