Monthly Archives: August 2009

Short Sellers in Retreat

FT: Shorters Retreat Helps Fuel Volatility In Depth on Short Selling Analysts say short sellers have been closing many of their positions in recent weeks. Short interest as a percentage of S&P 500 stocks fell to its lowest level in … Continue reading

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Shiller on the Economy and Animal Spirits

NYT: An Echo Chamber of Boom and Bust What happened? Economic analysts often turn to indicators like employment, housing starts or retail sales as causes of a recovery, when in fact they are merely symptoms. For a fuller explanation, look … Continue reading

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Subscribe to Excellent Teaching Podcasts on Current Financial Issues

American Public Media has a program called Marketplace Whiteboard.  You can subscribe to the podcasts on iTunes.  They are videos instructing on issues of the day.  A recent one is high-frequency trading – what it is, why it makes money, … Continue reading

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Good Investment Advice, Short and Long-term

WSJ: Why Investors Need to See the Light and Slow Down In March, stocks traded as low as 11.7 times their average earnings over the previous 10 years, adjusted for inflation, according to finance professor Robert Shiller of Yale University. … Continue reading

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Cerberus on the Ropes

NYT: Cerberus Investors Seek to Pull $5.5 Billion About 71 percent of the investors in the two Cerberus Partners funds want their assets moved into a new vehicle that will be liquidated as market conditions improve, Stephen A. Feinberg, who … Continue reading

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Recession Likely to Influence Consumers for Years to Come

NYT: A Reluctance to Sped May Be a Legacy of Recession Even as evidence mounts that the Great Recession has finally released its chokehold on the American economy, experts worry that the recovery may be weak, stymied by consumers’ reluctance … Continue reading

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Losses Due to U.S. Credit Crisis? $4 trillion

FT: IMF Set to Raise U.S. Credit Losses Estimate

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We Must Calculate the Full Cost of Our Financial System

FT: Overmighty Finance Levies a Tithe on Growth What is sorely missing is any real discussion of what function our financial system is supposed to perform and how well it is doing that job – and, just as important, at … Continue reading

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The Other Side of the Flash Trading Argument

WSJ: In Defense of 'Flash' Trading Let's say that among all the exchanges, the highest bid for stock XYZ is 10, and the lowest offer is 10.5. Bob enters a flash order to buy 500 shares in between, at 10.25. … Continue reading

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Inside High-Frequency Trading

WSJ: Meet Getco, High-Frequency Trade King CHICAGO — One of the biggest players in the hot area of high-frequency trading is one of the least known. Getco LLC, a private company with fewer than 250 employees, often accounts for 10% … Continue reading

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