Money Penny

Why Banking CEOs Should Stop Complaining and Be Held Accountable

somebody needs to ask these questions to these BANKS! i screw up at my job, i pay for it, i am held accountable. So why these CEOs get scott free with million dollar pay packages.... first you take million dollars packages, and then look for excuses....

Islamic Banking in America?

Author forgot to "highlight/emphasize" the moral/ethical aspects. Traditional banking CEOs earn millions to squander investors money. Nothing happens to them for screwing up. Oh yeah, government will bail them out.... FRE/FNM CEOs combined got 32million for 500billion screw up... same with C/MER/BS... and story goes on... hey i am not saying mistakes do not happen, but somebody needs to pay for greed and irrational self promotion at the cost of investor.. do not let them fudge numbers for bonuses... if you get bonus for good fudged profits,, why not loose when you screw ups... do these CEOs return their bonus after fraud is detected.. oh no govt will bail them out..... i hope this new banking systems, whatever they are based on do not lose their ethics..... I am willing to give them a chance over our govt promise and jackass CEOs.

Black Swans, Real Estate and Financial Stocks

I think quant models are another set of tools in investment decision toolbox (similar to black swan thinking, it cannot be totally discounted). Now individual investors can make use of it to make informed decisions for adapting/tweaking their portfolios. Whether good or bad, it will depend on perspective !! A billionaire will not bat an eye lid for betting $1000 for 50/50 chance of doubling it. But for hourly worker this 50/50 chance is not worth the risk and ignores it. But may be at 90/10 chance for doubling will make him jump to it. It is all matter of perspective on how you use your tools. The modeling approach can be questioned (a separate topic), but relativeness remains same for calculating 50/50 or 90/10. From my perspective, I prefer continuously adapting quant models as opposed to monte carlo simulation (a separate topic of discussion).