Monthly Archives: December 2009

The Fed’s Exit Strategy

Download 2009-12-29 Fed Proposes Tool to Drain Extra Cash – WSJ.com  

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Excellent Viewpoint on Markets and Govt

Download 2009-12-28 The Cloning of Fannie and Freddie – WSJ.com Federal bailouts to date have already set a dangerous precedent. In fact, by acting as an explicit guarantor on some bonds, buying mortgage securities of dubious value, and dramatically loosening … Continue reading

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Ratings Agencies Dodge the Bullet

NYT: Debt Raters Avoid Overhaul After Crisis It was the near universal agreement that potential conflicts were embedded in the ratings model. For years, banks and other issuers have paid rating agencies to appraise securities — a bit like a … Continue reading

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Government’s Expanded Reach into Banking and Real Estate

Download 2009-12-28 After the Bailouts, Washington's the Boss – WSJ.com Today the U.S. government, directly or indirectly, underwrites nine of every 10 new residential mortgages, nearly twice the percentage before the crisis. Just last week, the Treasury said it would … Continue reading

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Well, At Least Half the Derivatives Market Will Be Transparent

Download 2009-12-26 Derivatives Overhaul Has Failed – WSJ.com Dealers persuaded lawmakers to make exemptions to the clearing rules for some customers, including those covering foreign-exchange contracts, hedging by "end users" such as energy firms and airlines, and activities to offset … Continue reading

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Hedge Fund Clones using ETFs & Futures

Download 2009-12-26 Hedge-Fund Clones Draw Investors – WSJ.com The firms offering replication products say they will deliver hedge-fund-style returns and diversification in a low-fee, transparent, easily traded package. Many charge fees of 1% to 2% of assets annually. Hedge funds, … Continue reading

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Forecast from PIMCO – usually pays to listen

NYT: Stocks Higher? Famed Investor Says Don't Bet on It As CEO at Newport Beach, Calif.-based Pimco, El-Erian, 51, oversees nearly $1 trillion in assets, more than the gross domestic product of most countries. So when he talks, people listen. What he's … Continue reading

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Goldman Gets Lampooned on SNL

SNL: Really? Seth and Amy segment

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Bill Gross, PIMCO, Captures It, As Usual

Calculated Risk Blog: Doubling Your Money while Earning 0.01 Percent “What the average citizen doesn’t explicitly understand is that a significant part of the government’s plan to repair the financial system and the economy is to pay savers nothing and … Continue reading

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Goldman Gets More Grief, Part II

NYT: Banks Bundled Bad Debt, Bet Against It and Won One focus of the inquiry is whether the firms creating the securities purposely helped to select especially risky mortgage-linked assets that would be most likely to crater, setting their clients … Continue reading

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