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HenryTo
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 Posted: Mon Nov 16, 2009 10:48 am Post subject: |
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Looks like the HF folks still don't quite get it (come on, purchasing those $5 calls with just 9 days until expiration?), but then if everyone is still doing it, it must be okay? The SEC certainly does not think so.
3Com Options Trades Before Hewlett Bid Said to Be Probed by SEC
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0LDGguBASUU&pos=4 |
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rffrydr
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| Posted: Sun Nov 15, 2009 9:57 am Post subject: |
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Progress finally being made towards linking debt to floundering banks in crises. Still "wait-and-see" attitude from FED and S&P while Lloyds et. al. pioneer the process.
The knock is that why would a rational investor forsake "equity-like" returns while retaining all the downside of equities. Returns on equities vs. bonds on almost any time frame for the last 30years should be reason enough for these "rationalists."
The position really amounts to the selling of a put. This could be very desirable for any "return-to-mean" investor and well as equity funds seeking to balance out their positions.
The real reason this is so hard has to do with 100yrs of legal precedent in property and bankruptcy. That CoCo's are not a direct challenge to bonds should assuage this concern.
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rffrydr
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| Posted: Tue Nov 10, 2009 11:21 pm Post subject: |
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Big business IS the enemy of capitalism. The goal is not growth. The goal is to grow to the right size. The right size is the size that excludes your competitors. An island....in extremis, japan.
At least that's the way it "used to" be. Going forward it seems "a" strong competitor is desired. Google would not be Google without microsoft. Detroit without Japan. Starbux without McDees.....WalMart without Amazon?
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nodoodahs
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| Posted: Tue Nov 10, 2009 10:35 am Post subject: |
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| rffrydr wrote: | | Quote: | | "It's a natural drive of capitalism to escape control and escape regulation and to keep growing to any size." |
Is this true  |
NO.
To the extent that one is a true believer in capitalism – and make NO mistake, there are NONE of these in the halls of “Big Business” – then one would be loath to be controlled or regulated by the State.
Being a true believer in capitalism doesn’t entail driving for “growth” per se. I’ve long maintained that “X thousand customers forever” is a viable business plan, and the only “growth” that’s absolutely necessary is ultimately the nominal kind, you know, that keeps you ahead of the pace of collapse in fiat currency. Even in those business models where “growth” of a non-nominal basis is needed, there is a “sweet spot” for every business model, past that point is where growth becomes counterproductive.
Keep in mind that the discussion of what “true believers in capitalism” want has ZERO to do with what big business wants.
Big business is an ENEMY of capitalism.
(1) it only exists because of the State, i.e. without corporate law, maximal company size would be much smaller.
(2) it uses the power of the State to suppress competition.
(3) no monopoly ever existed without State approval.
Pretty much every corporation that rails against some act of regulation has, at one point or another, been “on the bandwagon” for some other act of regulation. All, of course, on the basis of what favors them specifically and not on any moral grounds (although they will cite moral grounds as ideological cover when it suits them).
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rffrydr
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| Posted: Tue Nov 10, 2009 8:07 am Post subject: |
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| Quote: | | "It's a natural drive of capitalism to escape control and escape regulation and to keep growing to any size." |
Is this true
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HenryTo
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HenryTo
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| Posted: Fri Nov 06, 2009 9:21 am Post subject: |
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John Reed - former co-Chairman and co-CEO of Citigroup - kicks in with his two cents:
http://www.bloomberg.com/apps/news?pid=20601109&sid=albMYVE7D578&pos=12
| Quote: | Congress’ overhaul of U.S. financial regulations should include ordering banks to hold more capital, ensuring executives’ compensation is aligned with long-term profitability and banning firms that take deposits from also engaging in equities and fixed-income trading, Reed said.
“I would compartmentalize the industry for the same reason you compartmentalize ships,” Reed said in the interview in his office on Park Avenue in New York. “If you have a leak, the leak doesn’t spread and sink the whole vessel. So generally speaking you’d have consumer banking separate from trading bonds and equity.”
Citizen’s View
Lawmakers were wrong to repeal the Depression-era Glass- Steagall Act in 1999, Reed said. At the time, he supported overturn of the law, which required the separation of institutions that engaged in traditional customer banking services from those involved in capital markets. |
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rffrydr
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| Posted: Thu Nov 05, 2009 10:54 pm Post subject: |
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Apparently it's already in effect at a meeting of the great and the good last week. Banks are being instructed to pay like it's 2010.
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HenryTo
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| Posted: Thu Nov 05, 2009 10:46 pm Post subject: |
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Look for "compensation reform" to be on the Fed's radar screens by early next year. The ongoing rise in the unemployment rate - along with stubbornly high structural unemployment - is going to heighten the calls for stricter pay practices, especially since the middle class has had no real income increase (and wealth increase) since 2000:
http://money.cnn.com/2009/11/05/news/bonus.pool.fortune/index.htm?postversion=2009110513 |
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rffrydr
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rffrydr
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rffrydr
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rffrydr
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| Posted: Fri Oct 23, 2009 8:51 am Post subject: |
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Markets apolitical?
Hedge funds
Published: October 23 2009 09:42 | Last updated: October 23 2009 12:58
The European Central Bank is only the latest body to criticise proposed European regulation of alternative assets, such as hedge funds and private equity. But compared to other voices, such as the UK’s financial regulator or current EU president Sweden, the ECB is an impartial arbiter amid the squabbles.
The UK, worried about the rules’ impact on its position as King of European finance, opposes them. France, which seeks the crown, supports them. The ECB looks further afield. It knows that rules need to be globally harmonised to avoid regulatory arbitrage. It also recognises that “shadow banks” are a key source of credit when normal banks cannot or will not lend. The European Commission itself now admits the proposal need to be redrafted. Hedge funds have Frankfurt to thank for that.
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rffrydr
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| Posted: Wed Oct 21, 2009 4:18 pm Post subject: |
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At St. Paul's nonetheless. Is nothing sacred anymore!?
| Quote: | | The event was organized by the St Paul’s Institute, a group that “seeks to recapture the cathedral’s ancient role as a center of education or public debate.” |
Looks like the church is finding its calling again.
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HenryTo
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