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.

1 comment:

Anonymous said...

Possibly the BEST post that I read this week...

-Warm Regards