Contributing Editors' Blog Entries
Ten Year Note - Dodgy Investment
Submitted by Bruce Krasting on 09/03/2009 - 21:32 Americans will have to reach into their wallets and buy some Treasuries. POMO is almost over. Someone has to buy this paper. The problem is that at the current yield the adjusted return is less than 1/2 percent per annum. Who's buying that?
What makes us save more?
Submitted by J.D. Swampfox on 09/03/2009 - 13:55 There is debate (and confusion) over whether the average American has actually increased his saving rate or whether this is a mirage. Ha!... Felix Salmon points out that some economists actually think that buying stocks and bonds is consumption - not saving. Much of the confusion arises from the need to distinguish between "investors" and "savers".
The Cost of Doing Business?
Submitted by Leo Kolivakis on 09/03/2009 - 10:04 The dirty little secret in the pension world is that kickbacks are more common than people think in the private markets and hedge funds where funds try to bribe underpaid pension fund managers. How do I know? Because I have been approached in the past (very subtle, using words like 'facilitate') and witnessed my fair share of shady deals across many pension funds where I asked myself why the heck is this pension fund manager so gun-ho on that fund?
Gold and Silver v. Currencies
Submitted by thetechnicaltake on 09/03/2009 - 08:59 Gold and silver are outperforming a basket of currencies.Mtg.Bankers Assn. Proposal: Enlightened Self Interest
Submitted by Bruce Krasting on 09/02/2009 - 22:01 The Mortgage Bankers Association went public with their recommendations for the mortgage industry. They want to pretend that nothing went wrong the last five years. In my view their proposal is dead on arrival.
The value of the investment process
Submitted by Vitaliy Katsenelson on 09/02/2009 - 12:33 Over a lifetime, active investors will make hundreds, often thousands of investment decisions. Not all of those decisions will work out for the better. Some will lose and some will make us money. As humans we tend to focus on the outcome of the decision rather than on the process.
CDC H1N1 forced quarantine docs leak
Submitted by Project Mayhem on 09/02/2009 - 06:46 Last night Zero Hedge obtained some interesting documents from the CDC web site. They contain blank 'forced quarantine' orders from Iowa and Florida regarding novel H1N1 -- including forced quarantine to a 'secure detention center'.Pay Czar Reviewing GM's Pension Advisers?
Submitted by Leo Kolivakis on 09/01/2009 - 21:28 My advice to the U.S. pay czar is to leave Nancy Everett and her team alone. Unlike the senior managers at most of Canada's large public pension funds, the folks at Promark Global Advisors earned their compensation by not following the herd, realizing the beauty of bonds, and by focusing on preservation of capital.September – the worst month for stocks
Submitted by Vitaliy Katsenelson on 09/01/2009 - 12:19 After I looked at the data from 1900 to 2008, it is safe to conclude that September historically was the worst month for investors, period.Letter to New FHFA Director - A Proposal to Swap REO for Agency Preferred Stock
Submitted by Bruce Krasting on 09/01/2009 - 08:16 Agency Preferred Stock A proposal to swap Agency Preferred shares for repossessed properties owned by the D.C. lenders. This plan could work. Everyone wins. What do you think?Time to Clean House at Pensions?
Submitted by Leo Kolivakis on 08/31/2009 - 20:11 Provincial finance ministers should conduct a thorough performance, operational and fraud audit using independent industry experts on every major public pension fund in Canada. Some of these funds are hiding much more than others, but they all have secrets they want to keep from the public and they all game their private market benchmarks to reap big bonuses at the end of their fiscal year.Another confirmation of Chinese not-so-miracle growth
Submitted by Vitaliy Katsenelson on 08/31/2009 - 14:54 Electricity was not the only economic statistic not controlled / calculated by the Chinese government that showed that the 6% plus GDP growth in the first six months of 2009 (at a time when the global economy was sliding off the cliff) was an accounting miracle.Six reasons why natural gas is better investment than oil
Submitted by Vitaliy Katsenelson on 08/31/2009 - 11:06 Natural Gas Six reasons why natural gas is better investment than oilSwiss "Black" Accounts – A Trillion Dollar Problem
Submitted by Bruce Krasting on 08/31/2009 - 08:25 A respected Swiss publication puts a number on the size of Black accounts. $1 Trillion. Far more than anyone has suggested so far. Where did all this dirty money come from? The recent resolution with UBS is just the tip of this iceberg.