Don’t anthropomorphize markets

For today’s post I wanted to decry a financial markets press tactic that is as old as the markets themselves.  Namely, the media love to anthropomorphize markets, especially the stock market.  In other words, this is the tendency of reporters to ascribe human...

Safer bank standards

Over the weekend it was announced that global banking regulators had finally agree to new capital standards for banks.  The standards were coordinated by the Basel Committee on Banking Supervision.  In short, banks are going to be required to have more capital (read:...

A game of chicken

Much start-stop strangeness is happening in the stock markets.  Ostensibly this is due to companies reporting earnings that either exceed or are in line with expectations; yet whose revenues fail to excite.  This is the very same issue I wrote about over a year ago as...

Finally a financial overhaul bill

The big news this morning, and perhaps the biggest news since I started publishing the blog, is that a financial industry overhaul bill has finally been readied for Congress to vote on.  I began the blog sending out a mini-manifesto to the e-ethers calling for reform...

Fear of fear is generating fear

Open question to investors: What’re you doing liquidating U.S. stocks and going to cash? Open rebuttal to such thinking: You invest because you want to first, preserve capital, but second and more powerful, you want to make money.  Where else besides the U.S....