Risk Management

Steve 'Big Short' Eisman: Smart, Lucky, Abrasive (& Now One Of Them)

"In the movie he was portrayed as the moral compass. After hearing his praise for the awesome job Paulson did by saving the criminal Wall Street banks with taxpayer money, I think the justice and righteousness stuff is overdone. Earlier in his talk he said banks existed to “fuck you” – his exact words. Then later he says we had to save them or the world would have ended."

The 2nd Commandment Of Trading

"You can always buy it back" is one of the '10 Trading Commandments'. It is meant to encourage good risk management – cutting your losses before they kill you. But it is easier said then done and thanks to some useful academic work now we know why.

45 Trillion Reasons Why Gary Cohn Has Recused Himself From All Goldman Matters

“consistent with the stringent ethics rules established by the Trump Administration, Mr Cohn will recuse himself from participating in any matter directly involving his former employer, Goldman Sachs. He will also recuse himself from any matter or potential rulemaking before the CFTC in which Goldman Sachs has participated.”

Australia Central Bank Warns "High Debt Levels Are Affecting Household Spending"

"It is possible that continuing rises in indebtedness, partly as a result of low interest rates, increase the fragility of household balance sheets. If so, then at some point in the future, households having decided that they had borrowed too much, might cut back consumption sharply, hurting the overall economy."

A New Jacksonian Era? Part 1

There is no doubt Jackson and Trump have similarities in their confrontational natures, blunt talk and fiery tempers. It is fascinating how the intellectual elites of Jackson’s time had the same level of contempt for the common man as the arrogant ruling elite have for the “deplorables” inhabiting the towns and hamlets of flyover America today.

"Are You Ready For Greed?" Morgan Stanley Asks

"We think a scenario where retail investors, corporates and financials all get much more optimistic at the same time needs to be respected. As TABX cratered and credit markets wavered in early 2007, the S&P 500 went on to make new highs, not peaking until October. Greed is a powerful force. We are trying not to forget that."