Contributing Editors' Blog Entries
Party Like It's 2009?
Submitted by Leo Kolivakis on 10/15/2009 - 08:36 Yes folks, in due time, all that wealth will trickle down to the peasants who have to work for a living. Just be patient. Oh, you're hungry now? Facing a tough Christmas? Don't worry, those good Samaritans at Goldman Sachs are considering a billion dollar donation to charity. God bless their golden hearts. We need more good bankers like them.
And the next AIG is... (Public Edition)
Submitted by Reggie Middleton on 10/15/2009 - 05:43 AIG I have found evidence that this bank has $32 billion of naked (as in apparently unhedged) swaps on its books - just like AIG. The difference is this bank is bigger, probably has more exposure, and has already been bailed out - several times. Oh, did I mention the insured collateral is nearly half BBB rated or lower??? How about extreme management issues at the top, and I mean all the way to the top. A trunk full of junk, surrounded by drama! It should be an interesting conference call tomorrow when they report, that is if anybody decides to ask the right questions...
Bank Lobbyists Are Not Only Trying to Kill NEW Legislation, They Are Trying to Weaken EXISTING Regulations
Submitted by George Washington on 10/14/2009 - 19:44 Heads up!
Ladies and Gentlemen….The Inoculated Investor!
Submitted by inoculatedinvestor on 10/14/2009 - 19:43 For my Zero Hedge debut, I decided to introduce myself to readers by making an admission. Yes, I am a value investor. This means that I refuse to chase liquidity driven rallies and to buy stocks that are discounting operating margins and earnings that may not be realized for years. Sorry if this makes me an investing lunatic. But, if that is the case, I assume I will fit in quite well here at Zero Hedge. Welcome to my world.
Stop, Sheila! Stop!
Submitted by Econophile on 10/14/2009 - 15:29 The FDIC is proposing new rules that will allow banks to lower underwriting standards and capital requirements in order to encourage them to rewrite commercial real estate loans. This will cause more deflation, stagnation, and tightening of credit and will lengthen the recession/depression.
Banking: To Trade or Lend, That Is the Question
Submitted by Static Chaos on 10/14/2009 - 14:56 A year after the government applied many extraordinary measures to resuscitate the banking industry, the bleeding has slowed, but it hasn't stopped. Meanwhile, bank stocks have rallied off their winter lows, driven primarily by nonbanking businesses such as fixed-income trading and investment banking. There are several factors behind the big banks seeminly impressive performance....
Project VeRA and the Legend of Garrison Satch – Pt 1
Submitted by EB on 10/14/2009 - 14:53 Garrison Satch VeRA Garrison Satch walked through the lobby of the old 23 Building on Wall Street and winked at the receptionist. Fannie was wearing red that day and was quick to return a faux-demure smile. However, his thoughts quickly turned to VeRA–not a woman, but a secret initiative launched by the owners of the Building and the New York Stock Exchange. VeRA had her own underground facility that was accessible from both the 23 Building and the NYSE at 11 Broad Street. She also had a street entrance, but...Reggie Middleton's Real Estate Rehash - 10/14/09
Submitted by Reggie Middleton on 10/14/2009 - 14:44 Real estate Reggie Middleton Here I show a direct comparison of my "on the street, grass roots" and "spreadsheet" observations to that of what is portrayed in the media. Let me know if you see any discrepancies...Congress Removes Authority to Ban Riskiest Derivatives Trades Because "There Was Concern That A Broad Grant To Ban Abusive Swaps Would Be...
Submitted by George Washington on 10/14/2009 - 14:20 Congress takes a dive before round 1 of the boxing match even begins.If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It?: Pt 2 - JP Morgan
Submitted by Reggie Middleton on 10/14/2009 - 02:38If a Bubble Bubble Bursts Off Balance Sheet, Will Anyone Be There to Hear It?
Submitted by Reggie Middleton on 10/14/2009 - 00:00 One of the quandaries of running a subscription service is that when you have some really juicy stuff, you inherently limit the audience that you are able to reach. Normally, this isn't that big a deal. When you believe that there is a mass cover up aiming to prop up the largest cadre of zombie, insolvent companies in modern history it becomes a much bigger deal. This leads me to distribute a significant amount of research for free.Deporting Alpha?
Submitted by Leo Kolivakis on 10/13/2009 - 21:13 While portable alpha is theoretically appealing - beta is cheap so swap into equity and bond indexes and use the cash to invest in hedge funds that produce alpha - in practice it can turn out to be a nightmare, especially during a liquidity crisis.China's Market Share Soars During Global Downturn
Submitted by George Washington on 10/13/2009 - 19:00 China Market Share China's export situation isn't as dire as you might assume ...Debunking the "Too Big To Fail" Myth
Submitted by George Washington on 10/13/2009 - 17:24 Fail Too Big To Fail The government is STILL defending too big to fail on several ridiculous grounds.