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Archive for March, 2008

Optional Profits, part II

Monday, March 31st, 2008, by

I was simply stunned to read Eleanor Laise’s article on page D 1 of the March 26 Wall Street Journal. Let me see if I can parse out its message. Our prior post, part I, brought you up to speed on the concept of investing in options. The street’s latest innovation of derivative and option […]

Optional Profits, part I

Friday, March 28th, 2008, by

When you join the table for a game of poker, take a look at the other players. If you can’t tell who the sucker is….then you are the sucker. Wall Street has begun to migrate structured products ( defined mostly as an asset class attached to some kind of derivative) toward the retail market, and […]

Bottom Fishing

Thursday, March 27th, 2008, by

We have a new leading indicator pointing towards eventual recovery. Fresh sand in the gills…from some of the biggest fish in the business. This past Monday marked the launch of PennyMac, aka Private National Mortgage Acceptance Company LLC. The listed partners are Highfields Capital Management and BlackRock, Inc., the mega fund manager made even larger […]

Doubling Down

Wednesday, March 26th, 2008, by

Warning. This will be an “R” rated post. R, as in, you wanna be Real cautious before you go supercharging your mutual fund portfolio with the new breed of derivative enhanced mutual funds and exchange traded funds. Some background first. Leverage is a time honored tradition on Wall Street. Using borrowed money to magnify your […]

Home Alone

Tuesday, March 25th, 2008, by

Now that the politicos are falling all over each other offering nostrums to solve the housing crisis, I’d like to get my two cents in. You would be forgiven for thinking that the sub-prime crisis was a clever scheme inflicted upon innocent buyers . That’s the standard narrative going down now. So…in the issue of […]

Hedge Funds For the Rest of Us

Monday, March 24th, 2008, by

I’ve been accused of coming down too hard on the hedge fund industry. Never-mind. Nothing I say or do will ever produce even the slightest dent in their numbers. Like lemmings being drawn to the edge of a cliff, the rich are powerless to resist the siren call of these funds. Forget the outrageous fees […]

Free Us from Bondage

Friday, March 21st, 2008, by

I just received an email from a loyal reader, which contained a power point presentation of how the sub-prime mortgage loan fiasco spread. It was dead solid perfect and spot on. But a bit too scatological to reproduce on this site. What we have come to know as the housing bubble is simply a manifestation […]

Citigripe!

Thursday, March 20th, 2008, by

Don’t get mad. Get even. Some years ago, James Dimon left Citigroup to run Bank One in Chicago. He thought he was being groomed to be the successor CEO at Citi…and left as soon as he was passed over. Some guys get all the luck… he should consider himself very lucky to have dodged that […]