glassbox

The $60 Trillion Nightmare of Credit Default Swaps

Just declare this market illegal for those who cannot prove insurable interest. Its only good for those who need it for genuine hedging purposes and even for that - one gotta draw the line to where hedging ends and speculating starts.

Meanwhile, I don't understand why they have done anything shut it down up till now?

FBI Investigates Victims of the Financial Fallout

jum92, I feel exactly like you. I've been in this capital markets for the last 18 years and gone thru a couple of other crisis - one of which is the Asian Financial crisis. The extend of unethical trading taking place these days is amazing, its even more depressing to hear that many of these traders (perhaps like monday1929 who posted before you) think that they are just being 'honest speculators'. Frankly, many of these 'honest speculators' who think they are contributing to market efficiency are just being used as pawns by those in the know to bring down a company. Its saddens mean to hear of people saying that they are 'investing' when they are shorting a stock. How can anyone use that word 'investing' and think they are building themselves a future - its complete fallacy.

FBI Investigates Victims of the Financial Fallout

Tom, thank you for putting everything into perspective so eloquently and in language people can understand. It amazes me that no one has dared say the things you are saying now. Perhaps part of the problem is that no regulator would like to say that they were wrong to start with. Certainly hope that a few good men are still around to stand up for what is right!

Paulson/Bernanke: $700 Billion at 'Hold to Maturity' Pricing

I am not an American citizen but am interested in what is going on simply because American's financial system is so interwined in this global system that what happens there also happens to where I come from.

I lived through the Asian crisis - right in the middle of it. Whilst small in size vs the current crisis, I am amazed at how lacking a leadership and urgency the American people and Congress has showed in dealing in this whole affair. I watched the hearing last night and it came across that most were more interested in putting blame rather than finding a solution. There is still a lot of self denial going on and intention to fix a blame rather than find a solution.

On just looking on the various articles and comments from SA's forums, it seems like most Americans have lost hope and have turned very cynical. Yes, perhaps its right and natural to turn cynical on misdeeds of the past but with such attitude, how do you expect your regulators and leaders to act in the country's best interest. In fact, I see that many commentators likes to continue to paint a doom and gloom scenario - yes, perhaps its time America went down the drain and perhaps its constituents deserve it - not for the lack of ideas to deal with the current crisis - but for the lack of hope and respect in herself and ability to deal with it in the future and this insatiable need to keep looking back and pinning blame.

At this rate, the US will definitely be in the Great Depression - in fact, with the attitudes I see displayed here at SA, its already here.

Short Selling: Myths and Facts

Mark

A decent article for starters but you completely left out the other side - what makes a long want to lend their shares? And what does it take a long to keep lending their shares. The perspective from the longs is more fundamentally important as short selling is a derivative - shorts have no rights, their 'rights' are derived and premised on longs' willingness to lend the shares.

It'll be good to understand the dynamics involved in getting scrips to short.

AIG and the Derivative Nightmare

Urghhh... seems like AIG's risk controls went out of control... I'm really baffled how this could have happened.

I'm long ABK and would love to buy AIG, except am not sure if after all the selling of the assets, there's going to be anything left for shareholders.

AIG and the Derivative Nightmare

TomArmistead, thanks for the clarification. I'm just trying to tie in how much more 'bailouts' we might have to see. Don't know if I am looking at it rightly but the US$85BN line to AIG seems a lot more than your probable losses of US$4BN.

AIG and the Derivative Nightmare

Thanks Andrew. I'm still curious how this figure was arrived at especially if there is no central clearing house for derivatives.

Moral Hazard: A Danger to Our Financial System

Tom, this is a very good article. But I'm afraid not many of the generation that has not retired (i.e. those 55 years and younger) actual understand the meaning of 'moral'. Sadly, I think its a lost principal in many business dealings these days. Hence, a blow up almost every few years....

For many, the law of the jungle rules, so caveat emptor....

Buffett Warned Us in 2003

Wall Street is ruled by a group of financial gangsters allowed to run wild in the name of free enterprise.

What do you get?

A big mess!

AIG and the Derivative Nightmare

Andy, would appreciate if you could point us all to the source of the 62 trillion outstanding derivatives.

AIG and the Derivative Nightmare

Andy, where did you get the 62 trillion figure from? its almost unbelievable.

Five Systemic Problems Highlighted by AIG Crisis

I'm with you on every point Tom!! The smarties at the Wall Street firms and the old boys network know about your every point but not many of them are saying anything about it as long as its making money for them.

The old boys clubs/network together with regulators have allowed all these systemic risks to continue despite knowing them....but have chosen to remain absolutely silent about their risks.

I really wonder - how is it that this can play out in the US but we have not seen anything like this in Europe or Asia?