The essence of Capitalism is that you take risk and ‘invest’ via ownership or debt in a venture. If the venture goes bust, then: If you are a shareholder, you could lose all you invested; If you are a bondholder, you get some back (say your fair share of whatever is remaining, after liquidation); and […]
I am neither a mathematician, nor a programmer. However, my engineering education and experience has given me a fairly decent exposure to both. For whatever reason, the world of finance and economics always fascinated me. Back in 1995, when my job was a bit shaky, I contacted Mr. Rao Chalasani about switching my career. Rao […]
Vikram Pandit and Indra Nooyi are the two most prominent executives of Indian origin at Fortune 500 companies. From what I have read, Indra is doing a fantastic job as the CEO of Pepsi. On the other hand, Pandit caught the ‘I am a banker, and therefore I am special!’ bug. Today he was out […]
Ah! Goldman Sachs games and shenanigans explained in 10 min. [media id=59 width=500 height=370]
Stop being naive in believing that the stock market is ‘efficient’ and all those nonsensical theories developed by some crackpot economists. In a LESS manipulated market, you may have a chance at making money in ‘investing’ or ‘trading’ securities. You might ask, “what about making money in the current market environment?” To that I say, […]
If you are following a lot of news on the economy lately, you would have read headlines saying something or other got “unexpectedly” worse. Some headlines this week: Jobless claims unexpectedly rose last week (today) New home sales unexpectedly plunged in January (earlier this week) Consumer confidence unexpectedly plunges to a 43-year low (yesterday) Durable […]
The purpose of this post is two-fold. To give some background on my earlier blogging (or its predecessor: bulletin board life) on the subject of economy and financial markets; and To lead you into a phenomenal video produced by PBS Frontline on this subject as a sequel to this post. I have been educating myself […]
There is a valid place for the financial sector in the economy. But it should be the cart pulled by a horse called manufacturing economy. Not the other way round as it has been in the last 7 to 10 years. In other words, the economic activity has to be based on production and sale […]
Citibank neither had enough, nor do they think that they gave us, the citizens enough of their crap. In the Mexican peso crisis of 1994-1995 CitiBank should have gone kaput. Thanks to Clinton’s Treasury Secretary Rubin and Alan Greenspan, Mexico was bailed out. The bailout gave a respite to the Orange County, CA pension fund […]
I am not a ‘chicken-little’ or an alarmist of any kind. But, when I see disturbing developments that are going to affect our livelihood and lives, I feel like disseminating that ‘feeling.’ In the attached audio (podcast) bit I sounded an alarm and urged the listeners to take defensive mechanisms with your money and investments. […]
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Remember the infamous slip of tongue by Goldman’s CEO Lloyd Blankfine that Goldman is doing “God’s work?” This PBS report sheds some light on that “God’s work.” You will know what front-running is. Pay particular attention to what former insider Nomi Prins and hedge fund manager Jeff Macky are saying. I agree with Jeff’s defense […]
It seems to me that Elizabeth Warren, Chairwoman of Congressional Oversight Panel is the only person fighting for the consumer against the sleazy business practices of big banks. See this interview and notice how CNBS anchors, whose job is to shill for Wall Street money interests, come out as apologists for those unconscionable business practices […]
Today the Eurozone leaders have announced some sort of a rescue plan for debt burdened Greece. The pledge failed to calm fears. Experts I follow are warning that this sovereign debt storm will not stop with Greece, Spain or Portugal. It is expected to spread to entire Europe and affect US and all economies in […]
Here is a nonsensical rant from a right-wing nut and a CNBS host Larry Kudlow. According to this ‘recovered’ drug addict and yet to recover ‘BS’ addict, all tax cuts are good, unions are bad. Bailouts are a necessary evil as long as they prop markets which were not fundamentally justified being at the levels […]
Recent slide in markets is mainly attributed to the implosion of economies in PIGS (Portugal, Ireland, Greece and Spain). While this is going on,rumor is that Goldman is incurring significant losses YTD (year-to-date) on carry trade and may have to place stop-loss orders. One might ask, “What is a carry-trade?” I was going to explain. […]
