December 2011
2 tags
“The bottom line is that 2011 was a year in which our political elite obsessed...”
– Paul Krugman in Keynes Was Right - NYTimes.com
2 tags
“The proponents of shareholder value maximization and stock-based executive...”
– Steve Denning in The Dumbest Idea In The World: Maximizing Shareholder Value - Forbes
1 tag
“The unemployment rate—which rose to 9.7% of the active population in the third...”
– Gabriele Parussini in Nicolas Sarkozy Prepares to Deploy German Approach to Limiting Unemployment - WSJ.com
2 tags
“Imagine an NFL coach holding a press conference on Wednesday to announce that he...”
– Roger L. Martin, quoted by Steve Denning in The Dumbest Idea In The World: Maximizing Shareholder Value - Forbes
2 tags
Why Equality is Better for Everyone →
The Spirit Level, by Richard Wilkinson and Kate Pickett, which has sold more than 100,000 copies since its 2009 publication in Britain, offers insight beyond the bare facts of the census income data. Our national response to the hardships caused by the market crisis of 2008 has been to apply more of the same economic system—subsidize the banks in the hope this gets the economy growing again. But...
2 tags
2 tags
“Also, note that there is usually a cost attached to the secure safekeeping of...”
– David R. Kotok in Asset Safety in the post-MF Global World | The Big Picture
3 tags
“I have lived what now, at 75, is starting to feel like a long life. If anyone...”
– Michael Thomas in The Big Lie - Print View - The Daily Beast
2 tags
“We believe that no new safety became available in the City between the Lehman...”
– David R. Kotok in Asset Safety in the post-MF Global World | The Big Picture
1 tag
“The percentage of Americans who own their home dropped from a peak of 69.2...”
– America becoming a nation of renters - Business - Real estate - msnbc.com
1 tag
“The S&P 500 rose 3.7 percent last week, sending the measure to a gain of 0.6...”
– Inyoung Hwang and Alexis Xydias in S&P Index in 2011 Moves Least Since 1970 - Bloomberg
1 tag
“The function of a ratings agency is to visit the field at the end of the battle...”
– John Heimann, former US Comptroller of the Currency, spring 1998, quoted by David R. Kotok in Asset Safety in the post-MF Global World | The Big Picture
1 tag
“And this gets to the important point.
The iPad is the same. But the number of...”
– Henry Blodget in MILLIONAIRE’S ISLAND: A Simple Example Of Why ‘Rich People’ Don’t Create Jobs
2 tags
“The magnitude and coincidence of borrowing and returning of shares is evidence...”
– Vedant Misra, Marco Lagi and Yaneer Bar-Yam in [1112.3095] Evidence of market manipulation in the financial crisis
2 tags
“Differences between rich and poor are tolerated as long as the rags-to-riches...”
– Thomas Schulz in The Second Gilded Age: Has America Become an Oligarchy? - SPIEGEL ONLINE - News - International
2 tags
“If a billionaire were starving and there was nothing else to eat, the...”
– Henry Blodget in MILLIONAIRE’S ISLAND: A Simple Example Of Why ‘Rich People’ Don’t Create Jobs
1 tag
“When I joined JP Morgan in 1994, the #1 issue raised by our Chief Economist at...”
– #OWS: one insider’s view on how banking lost its way (and what to do next) - Fred Destin
1 tag
“Panics are not dealt with effectively through delay, through public discussion,...”
– Benjamin Anderson, quoted by Frederick Sheehan in U.S. Exposure to Europe - Unknowns Unknowns | Credit Writedowns
2 tags
“In 1980, American CEOs earned 42 times more than the average employee. Today,...”
– Thomas Schulz in The Second Gilded Age: Has America Become an Oligarchy? - SPIEGEL ONLINE - News - International
2 tags
“It is surprising U.S. Treasuries still hold that princely position. The FDIC is...”
– Frederick J. Sheehan in U.S. Exposure to Europe - Unknowns Unknowns | Credit Writedowns
1 tag
“Next time you gamble, don’t forget that the house always wins. Or, as they...”
– Simon Johnson in Still Too Big To Fail? (Part II) : Planet Money : NPR
2 tags
“This is exactly what Lehman Brothers did through Lehman Brothers International...”
– Tyler Durden in Why The UK Trail Of The MF Global Collapse May Have “Apocalyptic” Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else | ZeroHedge
3 tags
“Re-hypothecation transactions are off-balance sheet and are therefore...”
– Christopher Elias in MF Global and the great Wall St re-hypothecation scandal
1 tag
“What is new is that bondholders—the people who lent the money to firms that got...”
– Philip Swagel, quoted in Still Too Big To Fail? (Part I) : Planet Money : NPR
1 tag
“Hedge funds and private equity funds go out of business all the time when they...”
– John Huntsman, quoted by Simon Johnson in Still Too Big To Fail? (Part II) : Planet Money : NPR
1 tag
“When the crisis finally hits, correlations shoot up from the same endogenous...”
– Rick Bookstaber in The Volatility Paradox | Credit Writedowns
3 tags
“Despite the fact that there may only be a quarter of the collateral in the world...”
– Christopher Elias in MF Global and the great Wall St re-hypothecation scandal
1 tag
“In fact, by 2007, re-hypothecation had grown so large that it accounted for half...”
– Tyler Durden in Why The UK Trail Of The MF Global Collapse May Have “Apocalyptic” Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else | ZeroHedge
2 tags
“I like this - the IMF does not believe in “confidence” fairies; they...”
– Tim Duy in Europe Still Heading For Collapse - Tim Duy’s Fed Watch
1 tag
“If MF Global moved their US client assets to their UK subsidiary (added: moved...”
– Calculated Risk: MF Global and Rehypothecation
3 tags
“Backed by the European Financial Stability Facility (EFSF), it was a clever bet...”
– Christopher Elias in MF Global and the great Wall St re-hypothecation scandal
2 tags
“Under the U.S. Federal Reserve Board’s Regulation T and SEC Rule 15c3-3, a...”
– Christopher Elias, quoted by Tyler Durden in Why The UK Trail Of The MF Global Collapse May Have “Apocalyptic” Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else | ZeroHedge
2 tags
“Reg. T does permit the broker to “repledge” (AKA re-hypothecate). In the event...”
– Bruce Krasting: The Fed, MFG and Reg. T
1 tag
“Paulson, who is having the worst year of his career as bets on a U.S. economic...”
– Saijel Kishan and Jeff Kearns in Traders Confounded as Volatility Extends Run - Bloomberg
1 tag
“In investment banking, assets deposited with a broker will be hypothecated such...”
– Christopher Elias, quoted by Tyler Durden in Why The UK Trail Of The MF Global Collapse May Have “Apocalyptic” Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else | ZeroHedge
1 tag
“Of course we all know that when the crisis hits the correlations suddenly rise...”
– Rick Bookstaber in The Volatility Paradox | Credit Writedowns
2 tags
“MF Global used a version of an off-balance-sheet repo called a...”
– Christopher Elias in MF Global and the great Wall St re-hypothecation scandal
1 tag
“There is no question that, if it was within their power, the Eurocrats would...”
– Frederick J. Sheehan in U.S. Exposure to Europe - Unknowns Unknowns | Credit Writedowns
1 tag
“What explains this? Two simple words, which form the foundation of modern...”
– Tyler Durden in Has The Imploding European Shadow Banking System Forced The Bundesbank To Prepare For Plan B? | ZeroHedge
2 tags
“In a speech at a conference on Dec. 1, Mr. Khuzami warned it would be...”
– Jean Eaglesham and Suzanne Kapner in SEC Cops Want to Fight U.S. Judge - WSJ.com
1 tag
“Mr. Dimon — who is on the board of the Federal Reserve Bank of New York — seems...”
– Simon Johnson: Where Is the Volcker Rule? - NYTimes.com
2 tags
“October 2008: The MC at the Most Powerful Women in Banking gala instructs...”
– Heidi N. Moore in A brief, ignoble history of the BlackBerry on Wall Street | Marketplace from American Public Media
3 tags
“December 15, 2011 Urban Word of the Day: Banker’s Dozen
The opposite of a...”
– Banker’s Dozen | The Big Picture
1 tag
“There is no economy in the world, whether low-income countries, emerging...”
– Christine Lagarde, managing director of the International Monetary Fund, quoted in ECB Success and Folly « naked capitalism
1 tag
“As readers will recall, the actual office that blew up the world the first time...”
– Tyler Durden in Why The UK Trail Of The MF Global Collapse May Have “Apocalyptic” Consequences For The Eurozone, Canadian Banks, Jefferies And Everyone Else | ZeroHedge
1 tag
“Britain’s regulator, the Financial Services Authority, has told...”
– Ben Hirschler and Scott Malone in Insight: In euro zone crisis, companies plan for the unthinkable | Reuters
1 tag
“Everyone was hopeful last week when ECB president Mario Draghi made some...”
– Plan B for Breakup | Credit Writedowns
2 tags
“MF Global’s investors may not have been fully informed about the European bet,...”
– Azam Ahmed, Ben Protess and Susanne Craig in A Romance With Risk That Brought On a Panic - NYTimes.com
1 tag
“Eugene Stanley, a physicist at Boston University, and his colleagues have shown...”
– Mandelbrot Beats Economics in Fathoming Markets: Mark Buchanan - Bloomberg
2 tags
“The Brussels deal is like a pill for pain — it makes you feel better, but it’s...”
– Jean Pisani-Ferry, quoted by Steven Erlanger and Liz Alderman in Euro Deal is a Pill, but Experts Doubt It Is a Cure - NYTimes.com