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Unknown Professor

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  • Shiller Tries to Defend Subprime Mortgages [View article]
    "Net-net, financial innovation is a bad thing: the downside, during times of crisis, is higher than the upside in more normal years."

    This sounds suspiciously like Financial Ludditeism. I think you lack a sense of history. Would you prefer to go back to the financial system/products of the 1980s, 60s, or 40s?

    Innovation is merely the creation of something new. New financial products survive when they serve a purpose. When not, they don't.
    Jul 20 10:06 AM | 4 Likes Like |Link to Comment
  • Is Sarbanes-Oxley The Main Reason IPO Business Is Going Overseas? [View article]
    I'm not a big fan of Gross either, but he sometimes makes good points. As for his politics, I'm more interested in his economics. As one of my mentors told me, "truth told by a fool is no less true".

    Given my background, it's not surprising, but I look at from an educational standpoint. Sometimes bad arguments are the most educational, since pointing out their flaws aids in developing good arguments.

    Luckily, there's plenty of bad economic commentary in the media. Particularly at Slate.
    Aug 7 11:42 AM | Likes Like |Link to Comment
  • What to Look for In IPO Investing: Part I [View article]
    Not to rain on anyone's parade, but I have a VERY difficult time with anyone who advocates that you can "beat the market" investing in IPOs. First off, there's a HUGE adverse selection problem. A great deal of research indicates that investment bankers allocate the good IPOs to their buy-side peers.

    The article is also absolutiely correct that there are "pricing inefficiencies" in IPOs. They're incredibly difficult to value. However, I'd take issue with the idea that an individual investor (unless he or she has a great deal of resources behind them) could see through these mispricings.

    That's not to say thant no-one can. The typical individual investor is competing with people and institutions who have a great deal of either non-public or quasi-public information. They have acccess to others on the street, their own traders, and so on. So I'd say it's highly unlikely that you can beat them at their own game.

    There's also no empirical support for the "up two days is a buy signal".
    Jul 5 09:56 AM | Likes Like |Link to Comment
  • Can Sex Sell Online Financial Content? (PLA, TWX) [View article]
    I can just see guys telling their spouses, "But honey, I read it for the stock picks".
    Jan 9 08:48 AM | Likes Like |Link to Comment
  • We're Giving Away 5 Copies of "An Introduction to Project Finance" by Andrew Fight [View article]
    Sign me up
    Nov 6 06:38 PM | Likes Like |Link to Comment