Sunday, November 22, 2009

Sunday reading November 22nd, 2009

Why a Market Crash Doesn’t Matter: People who are worried about whether the stock market will crash or not are worried about a generality. In contrast, the world’s most successful investors are known to deal solely with specifics.

More Stocks May Not Make a Portfolio Safer: Not putting all your eggs in one basket is the most basic principle of investing. It also may be the hardest to get right.

What if a Recovery Is All in Your Head?: Beyond fiscal stimulus and government bailouts, the economic recovery that appears under way may be based on little more than self-fulfilling prophecy.

Exit strategies: the international dimension: Intervention by Lorenzo Bini Smaghi, Member of the Executive Board of the ECB, Euro50 Group Meeting
Is there still a paradigm for monetary policy today? Paris, 20 November 2009

Economists: Wrong Again: As if they didn't cause enough damage by espousing theories that failed to account for the inefficiencies and irrationalities of the real world, many economists are advocating aggressive spend-and-borrow policies to revive the financial crisis-hit U.S. economy that reflect an astonishing degree of naïveté and ivory tower hubris.

Sunday, November 15, 2009

Sunday reading November 15th

10 Years Later, a Much Less Expensive Dow 10,000 : Investors may take some comfort now that the Dow Jones industrial average is back above 10,000 after slipping to around 9,700 at the end of October. But the return to 10,000 also serves as a bitter reminder that stocks have gone virtually nowhere, on balance, for more than a decade.

UK to Propose Legislation to Contain Banker Pay, Make Suits Against Banks Easier: In the UK a very serious proposal to rein in banker pay is about to be put forward. If this were the US, one would assume that this is mere showmanship, a nice bit of grandstanding for something certain to be diluted into irrelevance.

Discretion and financial regulation: An enduring truth about financial regulation is this: Given the discretion to do so, financial regulators will always do the wrong thing.

Obama says China not a threat: America will not try to contain a rising China, Barack Obama, the US president, told an audience in Japan on Saturday on the eve of his first visit to the world’s most populous nation.

Buffett: Put out economic fire then deal with deficit: Investor says he has faith that U.S. economy will create jobs and it will fare well against China.

Derivatives: over the Counter, out of Sight: Derivatives are extraordinarily useful – as well as complex, dangerous if misused and implicitly subsidized. No wonder regulators are taking a close look.