Archive for May, 2008

Four Credit Crisis Fallacies: Why We are Not Solving the Problems of The Financial System

Saturday, May 31st, 2008

Most citizens, we are told, take a cynical view of both Wall Street and Washington. It has given life to the candidacy of Barak Obama, perhaps. Do people of experience with The Street trust Washington to fix the problem? I don’t. I’ll tell you why. We are addressing problems we ...

The Rating Agencies: Are They Doomed?

Saturday, May 24th, 2008

The rating agencies have an interesting and distinguished history. I first focused on them when working for the Chicago Mercantile Exchange. We needed the permission of Standard and Poors Corporation to use their stock index to price our futures contract when it settled. Looking back at S&P’s decision to go ...

Credit Crisis Silliness: The Carving Knife Didn’t Kill the Butler.

Saturday, May 17th, 2008

One of the more self-destructive and fruitless results of the Credit Crisis is the relentless search for scapegoats. This is silly enough when applied to people. (See my earlier blog, “We’ve Found the 12 People that Caused the Crisis! Now We Can Stop Worrying.”) Of course many, many more than ...

As One Storm Ends, Another Comes: The Australian Merger Melee

Tuesday, May 13th, 2008

It was semi-prophetic the way that the big four Aussie banks announced to the world months ago their robust and healthy capital positions, leaving them well placed to secure the smaller, struggling financials when the sub-prime turmoil ended. I began to wonder soon after, however, whether this was nothing more ...