Monthly Archives: November 2007

Robert Shiller Recommends "Bold" Remedies for Housing

In an article in today’s New York Times, Yale Professor Robert Shiller makes a very important point: the remedies proposed by the powers that be for the burgeoning housing mess are woefully inadequate: ….our reaction to the current crisis is anemic….The “Super S.I.V.” rescue plan, instigated in October by Henry M. Paulson Jr., the Treasury […]

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Still More Grim News from the Credit Markets

Another day, another adverse development in the credit markets, or so it seems. Except now we are getting more than one troubling sighting a day. The latest tidings: liquidity in the credit markets is falling to the point where the European Central Bank has announced it will inject new cash. The underlying cause is worry […]

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Humans May Have Shortened the Life of the Universe

Never mind global warming. Human observation of the universe may have accelerated its demise. An article in New Scientist discusses the theory developed by cosmologists Lawrence Krauss of Case Western Reserve University and James Dent of Vanderbilt University. They believe that the observation of dark energy made in 1998 may have caused the universe to […]

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Some European Quants Down 15% in November

Quants take it on the chin again. This time, the miscue was a wrong-footed bet on stock price appreciation. From Bloomberg: Some European quantitative funds that bet on rising stock prices may have lost 15 percent this month as equity markets declined, according to strategists at JPMorgan Chase & Co. Fund managers using mathematical formulas […]

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Another CDO Liquidates

This liquidation of a Credit Suisse CDO, Adams Square Funding I (which I missed and a reader called to my attention) isn’t significant in financial terms (it had issued less than $500 million in securities) but shows investor lack of faith in the likelihood of recovery in the underlying assets. In Adam Square’s case, the […]

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"Not (Yet) a ‘Minsky Moment’"

Charles W. Calomiris, the Henry Kaufman professor of financial institutions at Columbia’s business school, has an interesting but ultimately frustrating post at VoxEU in which he argues that the trouble we are seeing in the credit markets is not yet a Minsky moment (in very simplistic terms, the point at which an overlevered and highly […]

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Low Participation in State Homeowner Rescue Programs

Some state governments have implemented programs to rescue mortgage borrowers in danger of losing their homes. Eight states have committed a total of $900 million to these plans, but a Boston Globe article reports that the uptake has been very low, with only 100 families getting refinancings. If you assume an average mortgage of $300,000, […]

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SIV Rescue Plan Reported to Choose BlackRock as Manager

A reader chided me for being late to this story, but it appears not to have been widely covered yet. Moreover, I would hazard that it means less than the out-of-character reporting in the Financial Times suggests (this “leak” is a PR plant). First, the FT article: BlackRock, the asset manager 49 per cent owned […]

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