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Tag Archives: derivatives
If the U.S. Defaults on Its Debt, Be Scared, Very Scared
If the United States defaults on its debt, this is what is likely to happen according to Ezra Klein: The choices it (the government) will face quickly become stark. It can cover interest on the debt, Social Security, Medicare, Medicaid, … Continue reading
Resources on “Too Big to Fail” Banks
Banks are an important asset for our capitalist economy. In fact it can be argued that a healthy and thriving banking system is at the core of a robust, growing economy. On the other hand, the Great Recession has taught … Continue reading
Posted in Economy, Government
Tagged banks, Basel III, capitalism., consumer protection agency, deregulation, derivatives, Dodd-Frank, economic growth, economy, FBI, Federal Reserve System, financial firms, foreclosure, fraud, Glass-Steagall, housing, investment banking, LIBOR, mortgages, offshore, recession, regulations, TARP, taxes, too big to fail, Wall Street
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The Formula that Killed Your 401(k) and Caused Unimaginable Human Suffering
This is the formula that killed your 401(k) and caused unimaginable human suffering across the planet: It’s called a Gaussian Copula. If you don’t understand it, you’re not alone and that’s part of the problem. This formula became ubiquitous in worldwide finance. David X. … Continue reading
Posted in Economy
Tagged 401(k), bonds, derivatives, financial markets, Gaussian Copula, investors, modeling, Quants, risk, swaps, Wall Street
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The Cause of the Financial Crisis: Fraudulent Creation of 3,000 Times Leverage On House Prices by the Big Banks
Ritholtz has a great article on the cause of the great Recession. It’s captured below. Insane Levels of Leverage by the Too Big to Fail Banks – Not Deadbeat Borrowers – Caused the Financial Crisis The Cause of the Financial … Continue reading
Posted in Economy
Tagged banks, derivatives, financial crisis, fraud, great recession, leverage, swaps, too big to fail
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Break Up the Giant, Insolvent Banks?
Are the giant banks too big to fail? Should they be broken up? Are they the “only way to save the economy”? Frankly I don’t know the answers to these complex and important questions. However, I will give leverage to … Continue reading
Holy Cow! Derivatives Exceed Global GDP by a Factor of 10!
Holy Cow! The total value of derivatives in the world exceeds total global gross domestic product by a factor of 10, according to Mark Mobius, executive chairman of Templeton Asset Management’s emerging markets group. As reported by Bloomberg, Mobius goes … Continue reading
Posted in Economy
Tagged banks, derivative growth, derivatives, Dodd-Frank, economy, regulation, risk, systemic collapse, too big to fail
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