Specter Of Resume-Padding Makes Comeback
Article :
November 2008
With so many more people looking for jobs than those actually up for grabs, the labor market right now can be a truly harrowing place. Some choose to deal with it by redoubling their efforts. Others, for lack of a better term, ‘sex up’ their resumes. The risks of getting creative with your credentials.
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Mind The Yield Curve
Article :
November 2008
You know what gets us extra excited? Well, without getting into too much detail, we can say it tends not to involve the yield curves of government securities. Still, with the benchmark curves in major government-bonds rapidly steepening, we are beginning to suffer from the effects of a wandering eye. A wandering eye toward government debt! God, what is wrong with us?
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Obama’s Win: What It Really Means
Article :
November 2008
Americans gave Obama the bat call, and he answered. But while stocks may have staged their largest Election-day rally since 1984, giving Asia a bump up earlier today, U.S. index futures and European issues have yet to feel the love. Still, if history is any measure, help may soon be on the way. Judging by the speed with which the Standard & Poor's 500 Index has fallen, a full recovery could begin as soon as July, if the market’s action mimics that of the recessions ended in 1975, 1982 and 1991 (or so says Bloomberg, which came to this conclusion after vetting large mounds of data). In the meantime, here’s your reality check on the changes you can expect to see from the Obama administration – not just in the coming months, but for years on out.
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‘TARP’ – Or TRAP?
Article :
November 2008
Er, wasn’t the standby Greek chorus among Wall Street banks just last week touting their unbridled health and superfitness? So what’s up now with the very same institutions thinking that if they don’t bleed the TARP for all it’s worth, they’ll look like a passel of country palookas unable to recognize the value of free cash? Or even worse, end up competitively disadvantaged because every other bank took handouts but them? Here, the makings of what’s now expected to be a gold rush of thousands of firms to the great government teet.
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The Trading Week: November 2 - 7
Posting :
All Things Forex
:
10/31/2008
The U.S. Non-Farm Payrolls and three interest rate announcements from the Reserve Bank of Australia, Bank of England, and the European Central Bank will kick-start the trading month ahead.
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Distress Signals
Article :
November/December 2008
How dire is the situation facing the financial system and the larger economy? A roundtable of distressed-securities experts share their outlook.
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Threat Assessment 2009
Article :
November/December 2008
A veteran risk manager takes the long view on the troubled financial markets. And it's not all bad -- really.
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Losing Lehman
Article :
November/December 2008
Whether you blame short sellers, toxic credit instruments, Hank Paulson or Dick Fuld, the loss of one of Wall Street's most prestigious firms was a painful episode few in the industry will ever forget. We take a look back at those final tragic days.
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Physical Commodities
Article :
November/December 2008
Need to burn off market-related stress? Sitaras Fitness is just the place.
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Gauging The Impossible
Article :
October 2008
By the impossible, we, of course, mean when this dog of a market might stage a turnaround. On the one hand, you can say that’s anyone’s guess. But on the other, to ignore the following forward-looking indicators would be folly. How the experts are reading the tea leaves.
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Weekly Street Sentiment for October 27
Posting :
First Coverage
:
10/27/2008
Sell-Side Says Get Out, Get Short, Get Safe.
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Stock Predictors Getting, Er...Rather Less Predictable
Article :
October 2008
It’s true that stock-index futures aren’t anything more than a bunch of traders’ amalgamated guesses at where the market is going. But lately, those guesses have been getting further and further off the mark. So, what’s the rumpus?
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Under Citadel’s Spell
Article :
October 2008
As the market collapsed like a misbegotten soufflé, Citadel’s top dog, Kenneth Griffin, made his move. Amid Wall Street’s wilding, he got on the horn and summoned his investors for a surprise conference call. And they came in droves. But will they heed his remarks?
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Fate Worse Than Bankruptcy?
Posting :
Ann Lee
:
10/23/2008
Death of a son. Stephen Czech, Chief Investment Officer of SJC Capital Partners, lost his only son who was 11 years old to brain cancer about a month ago. He received an award from the NYU Cancer Institute during the gala benefit held at Cipriani on 42nd Street for his determination to help fund research programs to find a cure.
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Lehman: Prosecutors On Both Sides Of Pond Closing In
Article :
October 2008
As authorities search the offices of German-owned development bank KfW Group about the small matter of the $411 million payment it wired to Lehman the same day the bank filed for bankruptcy, U.S. prosecutors are launching a battery of subpoenas to determine whether Lehman misled Wall Street analysts about the state of its financial health. Given what’s already happened, what more of a price could it pay?
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Making The Most Of The Credit Crunch
Article :
October 2008
Everyone has a different idea for making this the best global credit crunch ever. The U.S. is expanding the powers of the Federal Deposit Insurance Corporation and U.K. banks are clamoring for the reinstatement of dividends as U.K. Prime Minister Gordon Brown calls for a flashy, splashy “early warning” system of multicoloured lights (exaggerating only slightly, here) to alert us the next time a crisis is about to strike. The Bank of Japan is offering unlimited money to banks (not traders, unfortunately), the Reserve Bank of India is launching a 14-day repo auction to boost liquidity, Hong Kong is guaranteeing all bank deposits until the end of 2010, Indonesia is cutting banks’ forex reserve requirements and even Pakistan is getting in on the act. Of course, with all this effort being expended, the markets must still be on the rebound. Right? Well...It’s like this...
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US May Overcome Bone-Headedness
Article :
October 2008
Taking a page from the U.K., the U.S. looks like it may finally be ready to back its domestic bank deposits in an effort to soothe jittery customers now busily yanking all their cash from a wide range of financial institutions. While this remains at the discussion stage, here's why it could be a game-changer if the proposal gains traction.
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Playing Politics
Article :
October 2008
Whether you're big on Barack or keen for McCain, the bet you make now could boost your portfolio later.
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Pain Spotting
Article :
October 2008
A bear to the bone, John Del Vecchio looks for companies hiding dirty, disgusting messes-and then cleans up.
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US Steals From Britain's Playbook
Article :
October 2008
Now that Brits have gone THERE (snapping up ownership grubstakes in the big banks) Treasury Secretary Hank Paulson is realizing the coast is clear for him to do the same. If anyone squawks, he can just point to Britain, where taxpayers are already shouldering a burden well beyond $30,000 each (and with a lot less whining, we might add). Compared to that, the tax burden on Americans is still small fries. Here’s how this plan might work.
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Creativity Wanted
Posting :
Ann Lee
:
10/08/2008
While the central banks of the world grasp at straws to resolve the current credit crisis, our nation must not forget that the best answers to problems comes from human creativity.
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Wonder Women
Article :
October 2008
Meet some of money management's leading lights: Battling markets, taking profits and shattering stereotypes, they're the 10 top female fund managers on earth.
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McCain, Obama Skirmish Over Economy
Article :
October 2008
As markets dropped to their lowest level since 1997, the nation’s political candidates engaged in round two of antler-crashing before undecided voters over the best solution to the financial crisis. One suggested doling out roughly $300 billion to homeowners. The other claimed complementing homeowner aid with targeted tax cuts, health-care reform and broader energy options would produce the best results. So, what’s the people’s verdict?
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Trading Edge: Controlling Interest
Article :
October 2008
The path to financial glory and independence is paved with small, deliberate, incremental steps. Like these.
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Lehman Makes Its Case
Article :
October 2008
As Bank of America shows its tender underbelly in the form of a profit and dividend cut and Citigroup and Wells Fargo cool their heels in the fight over Wachovia in an uneasy, two-day truce, a new theatre of battle is opening up over Lehman Brothers CEO Dick Fuld. Should he be taken to the tool shed over allowing the bank to pay more than $23 million to three top executives on the cusp of the firm’s implosion?
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TARP
Posting :
Larry Levin
:
10/02/2008
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The Trading Week: September 28 - October 3
Posting :
All Things Forex
:
09/26/2008
The Non-Farm Payrolls and Employment Situation report will take the center stage in the busy week ahead that should provide more clues about the condition of the U.S. economy.
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And Then There Were None!
Posting :
Larry Levin
:
09/23/2008
Over the weekend Morgan Stanley and Goldman Sachs applied for bank holding status, which was granted. First Bear Stearns went down, then Lehman Brothers. Merrill Lynch was taken under by Bank of America, and the remaining two have thrown in the towel. None of the former High Priests of Finance exist in their recent form, which means Wall Street as we knew it has ceased to exist.
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Weekly Street Sentiment for September 22
Posting :
First Coverage
:
09/22/2008
Sell-Side feels, at least for the near future, that the worst is behind Financials.
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Credit Crisis Enters Critical Phase; Central Banks Freak
Article :
September 2008
The U.S. Federal Reserve, the European Central Bank, the Bank of Japan, the Bank of England, the Bank of Canada and the Swiss National Bank, et all, practically air-dropped hundreds of billions of dollars, spreading them all over the face of the earth, in a desperate attempt to maintain liquidity yesterday. Where did they get these dollars from? Warren Buffett, of course. Meanwhile, president Bush took drastic measures: he canceled a trip – no, really – to focus on masterminding a fresh economic plan. Always wanted to buy that favorite bank or insurance company? Go for it. If you act now, they will probably throw in Wachovia or Washington Mutual. And, heck, let’s not lie about it. THEY will pay YOU to take Wach or WaMu. And (obviously we don’t need to say this) either way they are probably available in some kind of twofer. So what are you waiting for? More on the latest maneuvers being employed in this serious new phase of the credit crunch.
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Without Fed Financing, AIG May Declare Bankruptcy by Wednesday
Article :
September 2008
The fate of the American International Group now lies with Federal Reserve, as the likelihood of a $75 billion credit line financed by a bank syndicate appears unlikely, people briefed on the matter said Tuesday afternoon.
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NY, London Tie In Index Of Top Financial Cities
Article :
September 2008
Looks like the World Economic Forum’s very first ranking of the health of the world’s most-developed financial systems (assessing 52 countries) officially puts New York and London in a dead heat. Counties that did not do so well? Venezuela, Nigeria and the Ukraine. Click here for the pluses and minuses of each – plus which other nations ranked within a stone’s throw of the U.S. in the financial development index, being released today.
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Palin Roils Prediction Markets
Article :
September 2008
What trades taking place on betting systems like InTrade say about who will be our next president and vice president.
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The Trading Week: August 31 - September 5
Posting :
All Things Forex
:
08/29/2008
The U.S. Non-Farm Payrolls and four Interest Rate announcements from major central banks will kick-start the trading month ahead.
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Hopefest Day One Ends With a Bang
Article :
August 2008
The Democratic National Convention is to conclude with a resounding speech by Barack Obama this Thursday. The festivities warmed up on Monday though, with speeches by his wife Michelle and party stalwart Ted Kennedy, who despite illness insists he will be there in January for Obama’s would-be inauguration. Judging how Kennedy has a habit of cheating death, we should not put it past him.
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Deal Or No Deal
Article :
August 2008
An inside look at the unusually rich terms Freddie Mac is being forced to offer investors as it seeks to auction off $3 billion of its debt. Clearly, this raises still more concerns about the health of the U.S. mortgage monster. But is it good for you?
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CPI = Inflation, Minus Inflation.
Posting :
Larry Levin
:
08/18/2008
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Controlling Interest
Article :
September 2008
The path to financial glory and independence is paved with small, deliberate, incremental steps.
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Debt Market Tremors
Article :
August 2008
Like to play with fire? Nothing wrong with that. Probably it’s why you became a trader in the first place. But if your poison of choice happens to be the leprous corporate bonds and securities backed by consumer loans and mortgages, here’s the sectors where you might want to exercise just a smidgen of extra caution.
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Head Butler -- Books: Beatrice's Goat
Posting :
Jesse Kornbluth
:
08/08/2008
We're putting this book in the bedtime reading pile. Because, as the saga of Beatrice Biira proves, you never really know how far a pebble can ripple.
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Japan: Party Is Over
Article :
August 2008
If you are a yen hound, here’s why you might want to take under advisement a few choice remarks the nation’s head of business statistics at the Cabinet Office had about the economy today.
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Food Crisis Hits Overeaters Hardest
Article :
July 2008
Especially in the overeating capital of the world. And you know where that is – don’t you?
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East Hampton in Need of Municipal Philanthropy
Article :
July 2008
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The Trading Week: Jul. 27 - Aug. 1
Posting :
All Things Forex
:
07/25/2008
The U.S. Non-Farm Payrolls report will take the center stage in the week ahead and should deliver an exciting beginning of the new month.
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Wall Street Hubris Meet Thy Reward: Insolvency
Posting :
Larry Levin
:
07/14/2008
Last week's volatility was in a word: incredible. Lehman Brothers was again feared to be at death's door and oil was on a roller coaster, ending the week at new all-time highs. Fannie Mae (FNM) and Freddie Mac (FRE) were on that same coaster, jumping to the front seat on Friday when it was feared they were going under? Are they insolvent? Only time will tell with FNM and FRE. However, IndyMac bank sure is insolvent -- it was closed late Friday when the FDIC took it over. Wall Street hubris meet thy reward: insolvency.
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On Things Insolvent
Article :
July 2008
Do you ever have one of those days? When you feel like you might just default any second? Some tips on what you can do.
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Fat Chance
Article :
July 2008
Looks like the IndyMac debacle (from which, we hear, Sen. Chuck Schumer is still recovering the most) may just be a foretaste of the feast to come. While The Wall Street Journal is rosily proclaiming that “fewer banks are expected to fail than the 834 that went under from 1990 to 1992” (so much for the Monday morning pick-me-up) it seems little can stop this train wreck from happening other than a full-scale rebound of the economy and housing market. Cool. We’ll just wait for that, then.
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Speaking of the Rumor Mill...
Article :
July 2008
Jamie Dimon thinks rumor mongerers should go to jail. Bryan Burroughs blames the media for the run on Bear Stearns. Whomever you believe, the commentators are having a field day getting their arms around this one, bashing one another, and defending their journalistic craft.
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Our Debt Loses Value, So We Make Money
Article :
July 2008
As banks’ creditworthiness falls, their profits still go up. How? The decline in value of a banks’ debt under mark to market accounting rules can count as revenue, boosting whatever profits they can muster while fighting off billions in writedowns. If only we were all so lucky.
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More Trader Charges This Week?
Article :
June 2008
It is a very depressing thing when the two highest-level Wall Street executives charged in the wake of the subprime crisis happen to be hedge fund managers. Even worse when government prosecutors, not content to tar and feather said hedge fund managers in public for several days on end, opt to pull together a second-round slew of indictments.
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