Money and Finance
- Howard Marks On Skepticism
From The Most Important Thing:The global credit crisis of 2007– 2008 represents the greatest crash I have ever seen. The lessons to be learned from this experience are many, which is one reason I discuss aspects of it in more than one chapter. For me,...
- Libor-gate - By Michael Lewitt
At first, the announcement that Barclays was paying $450 million to settle charges that it manipulated Libor during the financial crisis seemed like just another minor corporate scandal. After all, it pales in comparison to the $3 billion settlement GlaxoSmithKline...
- Ny Times Op-ed From Michael Lewis And David Einhorn
A two-part Op-Ed piece from Michael Lewis and David Einhorn. First part – “The End of the Financial World as We Know It”: AMERICANS enter the New Year in a strange new role: financial lunatics. We’ve been viewed by the wider world with mistrust...
- Weekly Roundup - August 29, 2015
What a week! As I'm sure everyone is aware of the stock markets took a big step back to start off the week. The DJIA dropped almost 1,100 points in the first 10 minutes of trading Monday morning. I almost couldn't believe what I was seeing...
- Be Prepared To Lose All Your Money In The Stock Market.
(You can read my post here if you haven't already @ Standard Chartered is closing its' equity business. What a way to start 2015!) Continuing from the events of yesterday, a sudden thought occurred to me. While I was wondering what would...
Money and Finance
Daniel Kahneman comment on "The Big Short"
From the 2011 LMCM Thought Leader Forum:
"Look, every success story after the fact makes sense, that's the problem. There's something I'd like to add about hindsight, just to strengthen the point. It's something that many of us are thinking about. You hear some people say that so-and-so knew that the crisis was going to happen. Some people have read Michael Lewis' The Big Short, and they say there were those people, and they knew the crisis was going to happen. I think that's a scandal.The scandal is the use of the word "know." They didn't know the crisis was going to happen, they thought the crisis would happen. Very different. When we use the word "know," we use the word "know" on something that is true. It wasn't true before it happened, it was just a thought that they had with a certain amount of confidence.What makes it a scandal? When we use the word "know," we create the illusion that it was knowable. See, they knew, so it was knowable. No, it was not knowable. Equally intelligent people didn't know that.And Michael Lewis, I don't think, makes that mistake. "The Big Short" is about a few people who got rich, because they thought that and, indeed, it happened. It doesn't make them smarter than the rest of the world that didn't know it. It makes them, in my opinion, luckier. They happened to be right in a way that paid off in a big way."
- Howard Marks On Skepticism
From The Most Important Thing:The global credit crisis of 2007– 2008 represents the greatest crash I have ever seen. The lessons to be learned from this experience are many, which is one reason I discuss aspects of it in more than one chapter. For me,...
- Libor-gate - By Michael Lewitt
At first, the announcement that Barclays was paying $450 million to settle charges that it manipulated Libor during the financial crisis seemed like just another minor corporate scandal. After all, it pales in comparison to the $3 billion settlement GlaxoSmithKline...
- Ny Times Op-ed From Michael Lewis And David Einhorn
A two-part Op-Ed piece from Michael Lewis and David Einhorn. First part – “The End of the Financial World as We Know It”: AMERICANS enter the New Year in a strange new role: financial lunatics. We’ve been viewed by the wider world with mistrust...
- Weekly Roundup - August 29, 2015
What a week! As I'm sure everyone is aware of the stock markets took a big step back to start off the week. The DJIA dropped almost 1,100 points in the first 10 minutes of trading Monday morning. I almost couldn't believe what I was seeing...
- Be Prepared To Lose All Your Money In The Stock Market.
(You can read my post here if you haven't already @ Standard Chartered is closing its' equity business. What a way to start 2015!) Continuing from the events of yesterday, a sudden thought occurred to me. While I was wondering what would...