Sunday, September 27, 2009

Weekend reading September 27th

Euro May Rise, Bunds Fall, After Merkel Wins German Re-Election: The euro may advance and bunds fall after Angela Merkel’s Christian Democrats and the Free Democrats, her preferred allies, won enough votes to form a government, stoking speculation of a stronger economic recovery.

Taleb Questions Talent of Wall St. Analysts: As Nassim Nicholas Taleb testified before Congress in the clip shown below, the Banking Industry has lost every dollar they’ve ever made in history and then some, and their only real talent is paying themselves bonuses. Enjoy the clip..

Men’s Underwear as an Economic Indicator: You can seek your answers from Wall Street, government statistics or the latest predictions from hoary old economists. But why not examine your underwear, stand in line at the movies, or peer into your neighbor’s vegetable garden?

Why Concentration in the Banking Industry Threatens Our Economy: Economists and other financial experts could provide many reasons why concentration is dangerous. Certainly, their very size distorts the markets and limits the growth of smaller banks. and the economy cannot fundamentally recover while the giants continue to drag our economy down the drain.

Everybody's Lying to You: You don't have to go far to catch an earful of big-fish stories and half-baked forecasts coming out of Wall Street, Washington, and the boob tube.

Interview with Corriere della Sera: Interview by Jean-Claude Trichet, President of the ECB conducted on 23 September 2009 by Marika de Feo, Corriere della Sera

Stocks at a tipping point ahead of crucial week: This week brings key reports on jobs, manufacturing and housing -- and a chance for investors to jump back in or bail out even more.

Wells Fargo: Ready To Blow?: Buying Wachovia was strategically astute but financially messy.

Saturday, September 19, 2009

Weekend reading 19 September

Now Even Millionaires Can See the Benefits of Budgeting: Someone with $100 million has nothing to fear, not even fear itself.

Measuring what matters: Man does not live by GDP alone. A new report urges statisticians to capture what people do live by

The Coming Financial Time Bomb: Maybe you've heard this popular myth: A major cause of the financial crisis was boneheaded Wall Street compensation packages unaligned with shareholder interests

Recovery prompts fear of bubble: Record low interest rates and vast amounts of money pumped into economies by central banks has translated into surging asset values across financial markets, raising the prospect of a new speculative bubble.

Pound 'will fall to parity with euro': Sterling weakened yesterday to close at just over 90p to the euro for the first time in four months, amid renewed concern over the state of the British banking system.

Internal Audit: The Continuous Conundrum: A generally accepted definition of "continuous auditing" remains elusive, and expert practitioners remain rare. Here are some tips from the trenches for getting a program going.

Monday, September 14, 2009

Weekly reading Sep 14 - 18

Volcker Sees ‘Long Slog’ for U.S. Economy, Seeks Bank Limits: Paul Volcker, the former Federal Reserve chairman who’s an economic adviser to President Barack Obama, said there’s a “long way to go” before the economy returns to pre-recession levels.

Regulation of Banks and Financial Markets - One Year Later: The papers and the news broadcasts over the last week have been filled with stories about the failure of Lehman Brothers and the need to re-regulate the financial system....

How the Giants of Finance Shrunk, Then Grew, Under the Financial Crisis: Since the stock market’s peak in October 2007, Wall Street’s landscape has been permanently altered. Lehman Brothers, gone. Bear Stearns, gone. Merrill Lynch, gone. Main Street’s landscape has also changed. Wachovia, National City, Washington Mutual and Countrywide, all gone. These venerable financial giants all crumbled under the weight of the financial crisis...


Saturday, September 12, 2009

Weekend reading September 2nd

Cheap dollars are sowing the seeds of the next world crisis: After years of selling cheap goods to debt-fuelled Western consumers, China now has $2 trillion dollars of foreign exchange reserves. That's 2,000 billion – a reserve haul no less 25 times bigger than that of the UK.

Big week ahead on Wall Street: Reports of the stock rally's demise have been greatly exaggerated, with September so far managing to eschew a much-predicted selloff. A torrent of economic news this week could turn the tide.

Dummies for finance: Andreas Treichl of Erste Bank thinks banks should be kept small and simple. He may be descended from five generations of bankers and head a large bank himself, but Andreas Treichl has a pretty low opinion of his profession.

Mergers and acquisitions make a comeback,The return of the deal: A new merger wave may be forming, with lots of companies’ shares still at relatively cheap prices

Mathematics and economics: I’ve been getting some comments from people who think my magazine piece was an attack on the use of mathematics in economics. It wasn’t.

Lehman Had to Die So Global Finance Could Live: What if, a year ago this weekend, the government and the banking industry had somehow found a way to keep Lehman from filing for bankruptcy? How might that have changed the course of the financial crisis?

I know I know nothing; but at least I know that: Doing statistical analysis on a sample of size 1 is either a very frustrating or a very liberating exercise. The academic discipline known as history falls into that category. Most applied social science, including applied economics, does too.

Easy money fuels all markets, but not forever: General investment theory holds that investors should diversify, buying different asset classes on expectations that profits in some will help to offset losses in others for any given set of economic circumstances

BlackRock to launch trading platform: BlackRock, the asset manager poised to become the world’s largest money manager with $3,000bn under management, is preparing to create its own global trading platform – a move that could challenge the business at the heart of many Wall Street groups.

3 more down: Bank failure tally hits 92: Regulators close banks in Illinois, Minnesota and Washington at a cost of more than $2 billion to the FDIC.

The Power of the Balance Sheet: Power company Duke Energy outperformed the utility index despite a drop in sales volume and a pending regulatory approval. CFO Lynn Good preaches the virtues of a strong balance sheet during a downturn.

Friday, September 11, 2009

Current Twitter services

Followers who are new to the service provided by Twitter Financials may want to check if they want to add or change some of the services they are now following. Currently you can follow these services:

FX rates:
USD versus EUR, CHF, GBP, CAD: 30 min, 60 min
USD versus JPY, AUD, SGD, and AUD/JPY: 30 min, 60 min
EUR versus USD, GBP, CHF, JPY: 30 min, 60 min
GBP versus USD, EUR, CHF, JPY: 30 min, 60 min

FX alerts (intraday and year to date):
USD vs EUR, CHF, GBP and CAD
USD versus JPY, AUD, SGD, and AUD/JPY
EUR versus USD, GBP, CHF, JPY
GBP versus USD, EUR, CHF, JPY

EUR interest rates

Index alerts (intraday and year to date):
US: DJI, SP500, Nasdaq Composite and Nasdaq-100
EUR: AEX, CAC-40, BEL-20

Indices:
AEX: 15 min, 30 min, 60 min
DOW: 15 min, 30 min, 60 min
SP500: 15 min, 30 min, 60 min
Nasdaq Composite: 15 min, 30 min, 60 min