Lots of innovation links. I still don't understand the "is financial innovation good or bad?" debate. Innovation is inevitable and it is what we make of it (or let others make of it).
- Will Dearman
"The margin on the A loan is 250 basis points (bps) over LIBOR for the first six months, rising to 350 bps for the next three months and 400 bps thereafter. The margin on the B loan is 350 bps."
- Will Dearman
from Bookmarklet
"The trick for investors, he says, is to spot opportunities where government actions won't be enough to override market forces."
- Will Dearman
from Bookmarklet
"we remain concerned that we can be witnessing a temporary stabilization in this ratio, similar to the highlighted 1989 episode, which can then take us to the second leg of deterioration to new highs. In this case default cycle is likely to be pushed well into the future, with an uncertain peak levels. Performance of this ratio over the next few quarters would be crucial in answering this question."
- Will Dearman
"The buy-and-hold model has ruined many people and individual investors seem completely lost now that the standard go-to plan has clearly failed to meet the most basic of objectives: capital preservation in times of need. Demographically, this is an unmitigated disaster as baby boomers are going to start retiring in a few years en masse and the long-term assumptions built into their carefully crafted investment plans have been torn down by massive drawdowns in their IRA NAVs."
- Will Dearman
from Bookmarklet
Brad Setser: Follow the Money » Blog Archive » More government borrowing doesn’t necessarily mean more total borrowing - http://blogs.cfr.org/setser...
"Why hasn’t the expansion of the fiscal deficit pushed the amount the US borrows from the world up? Simple. American households and businesses are borrowing a lot less, so the total amount of money that Americans are borrowing isn’t rising."
- Will Dearman
from Bookmarklet