Archive - Apr 2, 2010 - Blog entry

The nation’s 10 largest public pension funds have paid private equity firms more than $17 billion in fees since 2000, according to a new analysis conducted for The New York Times, as the funds flocked to these so-called alternative investments in hopes of reaping market-beating returns. Unfortunately, most are still waiting for the big payoff - and shockingly, some are even doubling down on these investments.

Reports from the Labor Department today showed companies in the U.S. created more jobs in March than at any time in the past three years. Nevertheless, behind the rosy headlines, data from the Bureau of Labor Statistics also give a grim side of the employment picture.

During the critical first moments of a budding populist movement, it's not the leader who's most crucial but the first follower, who validates the leader, and the second follower, who validates the first. Herd mentality can work both ways.

Implied volatility for the big banks is down across the board, just about where it was before the system went into convulsions. This implies the coast is clear, as do the share prices of many banks.
Hard core forensic and fundamental analysis implies otherwise. So does the Fed's actions, which still incorporates ZIRP policy, as well as the waffling at FASB. We will either have smooth sailing from this point on out or there is a nasty surprise waiting (on and off balance sheet) for bank investors in the near future. I invite readers to weigh in with their opinions.

I ran this bit on The Daily Capitalist last year, same time, and got nothing but grief. What do you think?