LCACM

A List of Long and Short ETFs

May 21,2009
Shorting IFN may be an error and shows that the author does not have a good handle on the Chindia story. The huge jump by IFN on Monday, May 18th in response to the 2009 Indian election results would have caused huge losses to those following the author's advice relative to IFN. Granted that the problems faced by India are daunting, but the 2009 election results and the subsequent market response show that India is headed in the right direction at least for the near term.

Flying Bankers and the Economic Crisis: How Do We Make Banks Lend?

Refreshing article provides excellent analysis of the current crisis and offers some novel solutions that might actually work.

Congress Charges 'Commission', Culminates Decades of Mismanagement

Not sure why the 700B check to help Paulson's friends should not be also considered as "pork barrel". If Cowboy Capitalism was the highly resilient economic system that Wall St, claimed it was, it would not have created this mess. The current crisis proves that the fundamental assumptions of the Cowboy Capitalists may be flawed, and need a closer examination. It hardly makes sense to hand them a 700B check without ovesight and caution. As Paulson/Bernanke did not warn the US government sufficiently in advance, say 3 months before, these two fellows advice is very suspect. When scientists/engineers are faced with facts that do not conform to theory, they reexamine the theory to see why it failed. MBAs in Finance need to take a similar approach, instead of being blinded by ideology.

The Euro Shows Its Real Colors

There is no choice for US and Europe other than to inflate their currencies. These economies are being devastated by the so called Free Trade ideology. Wall St has coined the word "Proctectionism" so that it can be used to label and ridicule those who propose a saner and Fairer Market. However, the same high priests propounding Free Markets and Cowboy Capitalism have no problem asking the US government to hand them a 700B check. The Free Market can be likened to an Airplane AutoPilot. AutoPilots do a good job of steering the plane when the human Pilot might be asleep at the wheel during long flights, howerver, the Pilot is supposed to take over the controls in treachorous situations such as landing, takeoff, engine fire etc. Deregulation of the last few years is similar to sending a plane full of passengers on a flight without a Pilot, because the Pilot might fall asleep at the controls.