Monthly Archives: October 2010

How the Brain Reacts to Financial Bubbles – NYTimes.com

Why are bubbles such a persistent feature of financial history? Economists argue that these speculative frenzies are caused in part by market failures like too much liquidity or lax regulation. Cognitive psychologists, meanwhile, see bubbles as a case of pattern … Continue reading

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Cheap Debt Fuels Private Equity Revival – NYTimes.com

The divergent approaches highlight how cheap corporate debt is fueling the recovery of the private equity business. While it remains difficult to get a mortgage to buy a home or to get a loan to fund a small business, yield-starved … Continue reading

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PIMCO | Investment Outlook from Bill Gross – Run Turkey, Run

The Fed’s second round of QE, therefore, more closely resembles an attempted hypodermic straight to the economy’s heart than its mood elevator counterpart of 2009. If QEII cannot reflate capital markets, if it can’t produce 2% inflation and an assumed … Continue reading

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Engineering, Computer Science Pay More Than Liberal Arts – WSJ.com

The starting pay of certain liberal arts majors generally clocks in well below that of graduates in engineering fields, according to a Wall Street Journal study. Graduates with engineering degrees earned average starting pay of $56,000 in their first full-time … Continue reading

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Bank of America’s Foreclosure Mess Won’t Disappear Quickly – NYTimes.com

Thus the bank’s central position is that, since it is so doggone obvious that the homeowners can’t pay their mortgages, the fact that the affidavits might not have complied with the law shouldn’t cause anyone to break into a sweat. … Continue reading

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Einhorn in Action: Gloves Come Off In St. Joe Match – WSJ.com

Last week famed hedge-fund manager David Einhorn of Greenlight Capital disclosed he is shorting Florida real-estate developer St. Joe Co., arguing that the company's properties, largely undeveloped land in the Panhandle, are worth only a fraction of what the company … Continue reading

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Einhorn in Action: Gloves Come Off In St. Joe Match – WSJ.com

Last week famed hedge-fund manager David Einhorn of Greenlight Capital disclosed he is shorting Florida real-estate developer St. Joe Co., arguing that the company's properties, largely undeveloped land in the Panhandle, are worth only a fraction of what the company … Continue reading

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Einhorn in Action: Gloves Come Off In St. Joe Match – WSJ.com

Last week famed hedge-fund manager David Einhorn of Greenlight Capital disclosed he is shorting Florida real-estate developer St. Joe Co., arguing that the company's properties, largely undeveloped land in the Panhandle, are worth only a fraction of what the company … Continue reading

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House Advantage – Banks Shared in Profits on Securities Lending, but Not Losses – NYTimes.com

Here is the deal: Funds lend some of their stocks and bonds to Wall Street, in return for cash that banks like JPMorgan then invest. If the trades do well, the bank takes a cut of the profits. If the … Continue reading

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Subprime Debacle Act 2: Thoughts from the Frontline

There's trouble, my friends, and it is does indeed involve pool(s), but not in the pool hall. The real monster is hidden in those pools of subprime debt that have not gone away. When I first began writing and speaking … Continue reading

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