Ousted!

A short blog posting… The CEO of General Motors, Rick Wagoner, was fired today by the Executive Branch of the Federal Government. Never mind all of the issues surrounding that, the point of the post is that the leadership of institutions is being forced to...

Financial institution pay packages

If you have been following the blog since its inception you know that I have been talking about the ill effects of poor incentive compensation packages on financial institutions. At times I have railed against the packages and have identified them as being one of the...

Mutual funds

In the last post Nate had asked about the evaluation of mutual funds. Well it is my opinion that mutual funds are not evaluated very well. First of all, the principal evaluator of mutual funds, Morningstar, has less than perfect methods for evaluating the funds. That...

Comment from Nate answered

Happy Friday! I hope that this message finds each of you doing well. Thankfully, here in Santa Fe we have snow falling for the first time in awhile. Today’s post is an answer to a question asked by Nate in the comments section. Here is what Nate asked: “I...

Rah-rah, the rally

You have of course heard about the recent large rally in the financial markets? The rally feels good to me. This is because it is based on strong and positive news, rather than just “bargain basement” price taking. I also like the rise in asset prices...

21st century business

Some of you may have noticed that I am not happy with U.S. businesses. It’s not that I am opposed to making money – far from it. In fact, I think that capitalism easily does the most efficient job of allocating resources; and that is the purpose of an...