L is dressing like a penguin. Her penguin is dressing like a pirate, and L. and the stuffed penguin pirate are going to trick or treat together. It should be cute.
Archive for October, 2008
Halloween costume
October 30, 2008Who’s next?
October 28, 2008Article – WSJ.com:
Competitive Forces May Push Life Insurers To Federal Funds
The car companies have a case too.
Maybe it was the ratings agencies, after all
October 21, 2008Why the CDS Market Didn’t Fail – Finance Blog – Felix Salmon – Market Movers – Portfolio.com
Some useful quotes:
This bears repeating: if you take credit risk by writing credit protection, your position is marked to market daily, and is margined daily. Compare that to the behavior of banks, say, which took billions of dollars of [...]
I agree with this
October 19, 2008The Weekend Interview – WSJ.com
I think if you have some principles and know what you’re doing, the market responds. They see that you have some structure to your actions, that it isn’t just ad hoc — you’ll do this today but you’ll do something different tomorrow. And the market respects people in supervisory positions who [...]
The linked post perfect describes how **cked up things were
October 17, 2008Interfluidity :: CPDOs, Model Risk Spread, and Banks under Basel II
The post was written in 2006.
Banks were buying AAA rated synthetic bonds that had 2% higher yields than regular AAA bonds. You cannot buy such securities and expect not to have big risk; it fails the basic smell test.
Here is how the security is [...]
Fleet Foxes and Wilco
October 17, 2008Wilco & Fleet Foxes Sing Bob Dylan
I have given many, many exams.
October 17, 2008And each one causes me some stress. Will the students be able to solve the problems? Is it too hard? Is it too easy so that everyone gets the same grade? Do they have enough time?
But the shoe is now on the other foot. We have our midterm in our Chinese class this weekend, [...]
My wife said that the most important thing she learned in her MBA was excel…
October 16, 2008Barclays Spreadsheet Error Results In Lehman Chaos
This is the paper to read
October 16, 2008SSRN-The Subprime Panic by Gary Gorton
ABSTRACT
Understanding
the ongoing credit crisis or panic requires understanding the designs
of a number of interlinked securities, special purpose vehicles, and
derivatives, all related to subprime mortgages. I describe the relevant
securities, derivatives, and vehicles to show: (1) how the chain of
interlinked securities was sensitive to house prices; (2) how
asymmetric information was created [...]
A really great essay by Paul Krugman
October 16, 2008THE FALL AND RISE OF DEVELOPMENT ECONOMICS
