10 Feb 2011

Egypt: The Lesson in Nonviolence for 2011

I am in tears of wonder at the courage and continuing nonviolence of the protesters in Egypt. Many on the news have held up Martin Luther King Jr. in the Western interviews. Many stated over and over again today they are will to die. One said in Tahrir Square tonight

09 Feb 2011

Legacy Entity Sleight of Hand at Bank of America

Dr. Philip Neches has an analysis at the Huffington Post of the Bank of America (BAC) announcement that they will separate 1.3 million of their mortgages into a new “legacy asset” entity. This is a “good bank / bad bank” strategy. He notes that the announcement was exceedingly low key.

07 Jan 2011

High Frequency Trading Hacking

I read an article in Infoworld by Bill Snyder Hackers find new way to cheat on Wall Street — to everyone’s peril which reports on some work done at MIT. The gist of the hack is that by packet insertion in your competitor’s transaction stream you can slow down their

02 Jan 2011

Interview with Gary Gorton: New Theory of Debt, Collateral, Repo, Crisis and Regulation

Reading an interview with Gary Gorton of the Minneapolis Fed. (Hat tip to Naked Capitalism). He makes some interesting points regarding the securitization industry, its relationship with the repo market, how when collateral was deemed untrustworthy it led to hair-cutting and then full panic. Side comments on the need for

31 Dec 2010

Anti-projections for 2011

There are many lists out there for projections for 2011. I have decided to do the anti-pattern of a projection (the anti-projection?) with a discussion of what I think will occur and what I would rather see happen in 2011. Facts finally trump lies cleverly told and sold. I published

30 Dec 2010

A Nixon for Tax Increases?

As it took Nixon, with clear anti-communist credentials to stop the Vietnam war (even with secret bombing of Cambodia, and CIA shenanigans all over Southeast Asia, Kissinger, etc.); unfortunately it looks like it will take a Republican President with tax reduction and deficit reduction credibility in 2012 or in 2016

29 Dec 2010

Wall Street Gets What It Wants

If you thought that the financial plutocrats have been tamed, and that a new boom and bust cycle will be mitigated by future government intervention and regulation; Bloomberg lays it all out in astonishingly clear rhetoric in an article by Christine Harper Out of Lehman’s Ashes Wall Street Gets Most