Category Archives: Banks

Inevitable Ineffective Banking Regulation

I am mystified at why people might be outraged or surprised that the Federal Reserve does a poor job of overseeing banks.  The Fed is an overstaffed bureaucracy.  Overstaffed bureaucracies always tend toward consensus and non-confrontation. I know this from my days of working as an actuary inside an overstaffed life insurance company, and applying […]

Volatility Can Be Risk, At Rare Times

There is a saying in the markets that volatility is not risk. In general this is true, and helps to explain why measures like beta and standard deviation of returns do not measure risk, and are not priced by the market. After all, risk is the probability of losing money, and the severity thereof. It’s […]

On Current Credit Conditions

This should be short.  Remember that credit and equity volatility are strongly related. I am dubious about conditions in the bank loan market because Collateralized Loan Obligations [CLOs] are hot now and there are many that want to take the highest level of risk there.  I realize that I am usually early on credit issues, but […]

Sorted Weekly Tweets

Market Dynamics   Yellen Comments Boost Demand for Treasury Bonds http://t.co/2lzFhL97br Carry trade rescued, grows larger 4a later day of reckoning $$ $TLT May 10, 2014 One of the Best Retirement Deals 9 of 10 People Ignore http://t.co/oYw4xRjEdc Contribute 2a Roth 401(k) & save big on future taxes $$ $TROW May 10, 2014 NYSE to Curtail Order Types Amid Debate Over […]

Sorted Weekly Tweets

US Politics & Policy The Potential Bubble the Federal Reserve Cares Most About http://t.co/tp1Ug7YcaR Worrying about a bubble in the bond mkt $$ May 03, 2014 The Weekend Interview: The Investors at War With Political Power http://t.co/MuEvV0DQcC Courts protect our liberties from bureaucracies $$ May 03, 2014 Detroit Homeowners Gun Down Burglars as Police Wait for Cars http://t.co/Dkg7YEct4g This is the future […]