Meta
Categories
- accounting
- Announcements
- architecture
- art
- auctions
- bailouts
- banking
- bankruptcy
- ben stein watch
- blogonomics
- bonds and loans
- charts
- china
- cities
- climate change
- commercial property
- commodities
- consumers
- consumption
- corporatespeak
- credit ratings
- crime
- Culture
- Davos 2008
- Davos 2009
- defenestrations
- demographics
- derivatives
- design
- development
- drugs
- Econoblog
- economics
- education
- emerging markets
- employment
- energy
- entitlements
- eschatology
- euro
- facial hair
- fashion
- Film
- Finance
- fiscal and monetary policy
- food
- foreign exchange
- fraud
- gambling
- geopolitics
- governance
- healthcare
- hedge funds
- holidays
- housing
- humor
- Humour
- iceland
- IMF
- immigration
- infrastructure
- insurance
- intellectual property
- investing
- journalism
- labor
- language
- law
- leadership
- leaks
- M&A
- Media
- milken 2008
- Not economics
- pay
- personal finance
- philanthropy
- pirates
- Politics
- Portfolio
- prediction markets
- private banking
- private equity
- privatization
- productivity
- publishing
- race
- rants
- regulation
- remainders
- research
- Restaurants
- Rhian in Antarctica
- risk
- satire
- science
- shareholder activism
- sovereign debt
- sports
- statistics
- stocks
- taxes
- technocrats
- technology
- trade
- travel
- Uncategorized
- water
- wealth
- world bank
Archives
- March 2023
- August 2022
- July 2022
- June 2022
- May 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- December 2012
- August 2012
- June 2012
- March 2012
- April 2011
- August 2010
- June 2010
- January 2010
- December 2009
- September 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
- May 2007
- April 2007
- March 2007
- February 2007
- January 2007
- December 2006
- November 2006
- October 2006
- September 2006
- August 2006
- July 2006
- June 2006
- May 2006
- April 2006
- March 2006
- February 2006
- January 2006
- December 2005
- November 2005
- October 2005
- September 2005
- August 2005
- July 2005
- June 2005
- May 2005
- April 2005
- March 2005
- February 2005
- January 2005
- December 2004
- November 2004
- October 2004
- September 2004
- August 2004
- July 2004
- June 2004
- May 2004
- April 2004
- March 2004
- February 2004
- January 2004
- December 2003
- November 2003
- October 2003
- September 2003
- August 2003
- July 2003
- June 2003
- May 2003
- April 2003
- March 2003
- February 2003
- January 2003
- December 2002
- November 2002
- October 2002
- September 2002
- August 2002
- July 2002
- June 2002
- May 2002
- March 2002
- February 2002
- January 2002
- December 2001
- November 2001
- October 2001
- September 2001
- August 2001
- July 2001
- June 2001
- May 2001
- April 2001
- March 2001
- February 2001
- January 2001
- December 2000
- September 2000
- July 2000
- March 2000
- July 1999
Author Archives: Felix
Subprime: Gross Losses are Much Bigger Than Net Losses
I’d like to thank Floyd Norris for responding to my blog entry last week about one of his columns. Norris is a blogger in his own right, of course, but it’s always good to see venerable journalists venturing off their … Continue reading
Posted in foreign exchange, housing
Comments Off on Subprime: Gross Losses are Much Bigger Than Net Losses
Two Trades for 2008
I don’t make predictions. But, what the hell, let’s see how these two trades turn out over the next year. The first is highly speculative, and individual investors aren’t even allowed to do it; the second is highly defensive, and … Continue reading
Posted in bonds and loans, derivatives, stocks
Comments Off on Two Trades for 2008
The Most-Traded Stocks of the Year
Here’s an interesting exercise: compare this table, of the largest US companies by market capitalization, to this table, of the top stocks in 2007 by dollars traded. For instance, more money changed hands trading Apple shares than trading Exxon Mobil … Continue reading
Posted in stocks
Comments Off on The Most-Traded Stocks of the Year
Jingle Mail, in Practice
A textbook case of jingle mail: I got an agreement of sale today from a realtor looking for a prequal on a shortsale , the buyer lives next door , he has a current mortgage for $800,000 on a home … Continue reading
Posted in housing
Comments Off on Jingle Mail, in Practice
Blogonomics: The Gawker Media Pay Scheme
Gawker Media has moved to a pay-for-traffic business model, and Valleywag’s Paul Boutin has the full memo. Essentially, Gawker Media writers will now be paid in any given month the greater of two numbers: either their base pay, or the … Continue reading
Posted in blogonomics
1 Comment
Does LVMH Rule the Champagne Market?
Christina Passariello has an interesting WSJ article today on LVMH’s Champagne business, explaining at some length how the French luxury-goods giant sources all the grapes it needs to be the world’s biggest Champagne merchant. I do worry, though, that in … Continue reading
Posted in consumption, stocks
1 Comment
How I’ve Changed My Mind on Mortgages
The Edge Annual Question this year asks a group of (mostly) scientists what they have changed their mind about and why. I’m no scientist, but this is as good an opportunity as any to make explicit two things, both mortgage-related, … Continue reading
Posted in housing
Comments Off on How I’ve Changed My Mind on Mortgages
Stock Market Datapoint of the Day
Dean Baker: Investors in stock have not done very well over the last decade. The S&P 500 rose by a cumulative total of 52.6 percent from December 1997 to December 2007. After adjusting for inflation, the increase was 17.3 percent, … Continue reading
Posted in stocks
Comments Off on Stock Market Datapoint of the Day
My Predictions for 2008
Teresa, a loyal reader, writes: I was wondering, can you please post a blog with all your predictions for 2008? president? world series? best S&P sector? worst S&P sector? favorite stock pick for the year 2008? favorite dow 30 component … Continue reading
Posted in prediction markets
Comments Off on My Predictions for 2008
Exports to the Rescue?
Paul Krugman has an interesting chart, showing US exports rising even as residential investment has been falling. Indeed, he writes, “thanks to the weak dollar, they’ve risen almost enough to offset the housing plunge”. Now this is one of those … Continue reading
Posted in economics
Comments Off on Exports to the Rescue?
Extra Credit, Weekend Edition
Even before the Internet, news was pretty close to free: Justin Fox hits the nail on the head. (Related: Chris Anderson’s talk at Nokia.) Return to the Trial, or, why Western Union sucks: “Most of us need not concern ourselves … Continue reading
Posted in remainders
Comments Off on Extra Credit, Weekend Edition
The Economics of Non-Judicial Foreclosures
Have I mentioned of late how much I love my commenters? Many thanks to James Moore, who adds a very interesting twist to my obsession over the proportion of mortgages which are non-recourse. Moore gets straight to the heart of … Continue reading
Posted in housing
Comments Off on The Economics of Non-Judicial Foreclosures
If We’re Looking at AUM, Let’s Also Look at LUM
As we learned from the WSJ last month, “assets under management” is not the most useful of metrics to use when judging the size of a hedge fund. For example, bond fund Y2K said it had assets under management of … Continue reading
Posted in hedge funds
Comments Off on If We’re Looking at AUM, Let’s Also Look at LUM
Good and Bad Reasons to Worry About the Credit Crisis of 2008
Floyd Norris’s column today reads as though it was written by two different people. Most if it is very good – a clear explanation of where the next credit crisis might come from. But then, at the end, it falls … Continue reading
Posted in bonds and loans
Comments Off on Good and Bad Reasons to Worry About the Credit Crisis of 2008
Warren Buffett, Bond Insurer
I’m fascinated by the news that Warren Buffett is starting up a new bond insurer. On the one hand, it makes perfect sense: he’s an expert in insurance, he already has a triple-A credit rating, and his competitors in the … Continue reading
Posted in bonds and loans, insurance
Comments Off on Warren Buffett, Bond Insurer
Explaining CDOs, Overcollateralization Edition
I got an email from my friend Todd yesterday, saying that despite my best efforts, he still doesn’t understand CDOs. This puzzled me: Todd’s a very clever chap, and he even works at an investment bank. CDOs are easy to … Continue reading
Posted in bonds and loans
Comments Off on Explaining CDOs, Overcollateralization Edition
Extra Credit, Friday Edition
Wall Street Journal’s Cursory Story on Collateralized Debt Obligations: Yves Smith takes it apart. Are dead-tree magazines good or bad for the climate? Why Portfolio.com has a larger carbon footprint than Portfolio magazine. World’s Biggest Building Coming to Moscow: Crystal … Continue reading
Posted in remainders
Comments Off on Extra Credit, Friday Edition
McDonald’s Datapoint of the Day
George Will: McDonald’s exemplifies the role of small businesses in Americans’ upward mobility. The company is largely a confederation of small businesses: 85 percent of its U.S. restaurants — average annual sales, $2.2 million — are owned by franchisees. McDonald’s … Continue reading
Are Subprime Losses Being Exaggerated?
John Berry dedicates his Bloomberg column today to debunking exaggerated estimates of the magnitude of the subprime crisis. $300 billion, he asks? $400 billion? Pshaw. A more realistic amount is probably half or less than those exaggerated projections — say … Continue reading
Posted in housing
Comments Off on Are Subprime Losses Being Exaggerated?
Uncovering Material Information at Merrill Lynch
It’s the bottomless write-downs! According to William Tanona of Goldman Sachs, the write-downs we’ve already seen at Citigroup and Merrill Lynch aren’t even close to being final. Indeed, he reckons that both banks will see 11-figure write-downs in the fourth … Continue reading
Posted in banking, regulation
Comments Off on Uncovering Material Information at Merrill Lynch
Silly Idea of the Day: Grocession
Are you tired yet of the debate about whether or not we are in, or might even already have entered, a recession? Given that nobody knows and nobody can know, the whole thing seems a little bit pointless to me. … Continue reading
Posted in economics
Comments Off on Silly Idea of the Day: Grocession
The Genesis of a CDO
Portfolio’s flash-based explanation of what a CDO is has proved extremely popular, I’m happy to say. Now the WSJ has got in on the act as well, with a much more detailed (and much less metaphorical) flash-based explanation of how … Continue reading
Posted in bonds and loans
Comments Off on The Genesis of a CDO
Afghan Microlenders Also Take Deposits
Caitlin Liu has a wonderful story today on microfinance in Afghanistan; do check out the slide show, too. The bit which jumped out at me was this: Usually run by non-profit groups, microfinance agencies offer loans to the poor without … Continue reading
Posted in development
Comments Off on Afghan Microlenders Also Take Deposits
Sallie Mae: Now You Can Buy a Mandatory Convert!
On February 22, Sallie Mae is contractually obliged to pay Citigroup almost $2 billion for 44 million of its own shares, at $45.25 apiece. That’s despite the fact that the shares are currently trading at less than half that level. … Continue reading
Posted in stocks
Comments Off on Sallie Mae: Now You Can Buy a Mandatory Convert!
Extra Credit, Thursday Edition
Warren Buffett: The Awe of His Schucks: How the Sage of Omaha massages the media. Home Prices Fall for 10th Straight Month The Davos Question 08: What one thing do you think that countries, companies or individuals must do to … Continue reading
Posted in remainders
Comments Off on Extra Credit, Thursday Edition