You'll have to visit the Sad Guys On Trading Floors website and read the captions to truly appreciate the pictures.
![[Insert “Bear Market” joke here]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_u4bRIPl_YPW-7BjDiSI22uqKdshxWvHTjXzLtzYNr3WrwXUTzk3ognLhFPtKQ3rrklB9ixEFKzCGqkxGIIuacHU9jGevN6jihsZGvMXLpb8siThqnCta2HsmJTskRa6Q=s0-d)
Showing posts with label wall street. Show all posts
Showing posts with label wall street. Show all posts
Thursday, December 31, 2009
Sad Guys on Trading Floors: Full of pictures of sad & funny pictures of Wall Street traders
I'm not really keeping up with this blog, but I thought I'd share these recent economic sights:
You'll have to visit the Sad Guys On Trading Floors website and read the captions to truly appreciate the pictures.
You'll have to visit the Sad Guys On Trading Floors website and read the captions to truly appreciate the pictures.
Sunday, March 22, 2009
It's Going Too Fast!
I've been extremely busy and haven't been able to keep up with all of the drama in Washington DC about the stimulus package. There is so much going on!
I promise that I will select a few sounds and sights related to the various strategies proposed by our government officials, Wall Streeters, Main Streeters, and the rest of us!
I promise that I will select a few sounds and sights related to the various strategies proposed by our government officials, Wall Streeters, Main Streeters, and the rest of us!
Tuesday, March 10, 2009
A Glimpse of March 10th's Economic News
Latest news from the New York Times:
Madoff to Plead Guilty; Charges Carry a Life Sentence
New York Times Graphic:
Where Madoff Found Investors
The Wall Street Journal
Dow Surges Nearly 6%
![[Stocks Surge]](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_tqueyhhQxIjL8G4DKTAv7buMB1e6ng5LDaPnNjlkQIr2yK_CAT6-61UP6jg9pBkaORE1SqHqWAv0KbJ4X88USAhCzf0hiubSlEsBtCltZE9CKq8vws0zegkDy-SeX01kmOVymo4RdZ5j1Ez9OCWOZn=s0-d)
Picture from Associated Press
The following videos were removed:
Just the Right Medicine for Uncertain Times
Thar's Green in Them Thar Gold Stocks
Madoff to Plead Guilty; Charges Carry a Life Sentence
New York Times Graphic:
Where Madoff Found Investors
The Wall Street Journal
Dow Surges Nearly 6%
Picture from Associated Press
The following videos were removed:
Just the Right Medicine for Uncertain Times
Thar's Green in Them Thar Gold Stocks
Monday, January 19, 2009
More Jokes and Quotes, via Jon ( posted on the CodeProject's soapbox & rants message board)
Jon, a member of the CodeProject, posted the following quotes from movers and shakers from the 2007 financial world. In most cases, the opposite turned out to be true:
Note: I did not check the accuracy of these quotes.
"More Jokes from Bigtime Capitalists"
AIG Comedy Hour
"We are confident in our marks and the reasonableness of our valuation methods. We have a high degree of certainty in what we have booked to date." -- CEO of AIG, Martin Sullivan, Dec. 5, 2007
Bear Sterns Two-Face Show
Matthew Tannin, Bear Stearns portfolio mgr.(later arrested by the FBI): "If we believe the report is ANYWHERE CLOSE to accurate, I think we should close the funds now.... If [the report] is correct, then the entire subprime market is toast." -- Internal memo to another portfolio manager, April 22, 2007.
"So from a structural point of view, from an asset point of view, from a surveillance point of view, we're very comfortable with exactly where we are." -- Tannin to investors on April 25, 2007 (three days later)
"Our liquidity and balance sheet are strong.... We don't see any pressure on our liquidity, let alone a liquidity crisis." -- CEO Alan Schwartz to CNBC on March 12, 2008 - One day before he asked the Feds for emergency funding.
Countrywide ain't on your side
An analyst report suggesting that Countrywide faced liquidity problems "was totally irresponsible and baseless." On the contrary, "every one of these [crises] you come out of stronger, better, and with less competition." -- CEO Angelo Mozilo to CNBC on Aug. 23, 2007 - sold to BoA 11 months later.
Fannie is another name for a--
"There are no current plans to go back to the market for capital because we have all of those other levers that are turned on, producing capital, putting us into an increasingly - into a comfortable position based on where we are in the market right now." -- CEO Daniel H. Mudd, Feb. 27, 2008
Lehman Bros need glasses
"We are on the right track to put these last two quarters behind us." -- CEO Richard Fuld on Sept. 10, 2008 (6 days until it implodes and goes belly up.) These days, he's answering questions for federal prosecutors in Brooklyn, Manhattan, and Newark.
Merrill Lynch " ...."
"I think proactive, aggressive risk management has put us in an exceptionally good position.... We have seen significant reductions in our exposure to lower-rated segments of the market." -- CFO Jeffrey N. Edwards, July 17, 2007.
Wamu puts the whammy on you
As the housing market has softened as expected, what I have really seen is a continued very good performance out of most parts of the portfolio." -- CEO Kerry K. Killinger on Jan. 17, 2007 (He's presently under investigation for fraud.).
Is everybody laughing?
(Thanks, Jon, for your insight!)
Note: I did not check the accuracy of these quotes.
"More Jokes from Bigtime Capitalists"
AIG Comedy Hour
"We are confident in our marks and the reasonableness of our valuation methods. We have a high degree of certainty in what we have booked to date." -- CEO of AIG, Martin Sullivan, Dec. 5, 2007
Bear Sterns Two-Face Show
Matthew Tannin, Bear Stearns portfolio mgr.(later arrested by the FBI): "If we believe the report is ANYWHERE CLOSE to accurate, I think we should close the funds now.... If [the report] is correct, then the entire subprime market is toast." -- Internal memo to another portfolio manager, April 22, 2007.
"So from a structural point of view, from an asset point of view, from a surveillance point of view, we're very comfortable with exactly where we are." -- Tannin to investors on April 25, 2007 (three days later)
"Our liquidity and balance sheet are strong.... We don't see any pressure on our liquidity, let alone a liquidity crisis." -- CEO Alan Schwartz to CNBC on March 12, 2008 - One day before he asked the Feds for emergency funding.
Countrywide ain't on your side
An analyst report suggesting that Countrywide faced liquidity problems "was totally irresponsible and baseless." On the contrary, "every one of these [crises] you come out of stronger, better, and with less competition." -- CEO Angelo Mozilo to CNBC on Aug. 23, 2007 - sold to BoA 11 months later.
Fannie is another name for a--
"There are no current plans to go back to the market for capital because we have all of those other levers that are turned on, producing capital, putting us into an increasingly - into a comfortable position based on where we are in the market right now." -- CEO Daniel H. Mudd, Feb. 27, 2008
Lehman Bros need glasses
"We are on the right track to put these last two quarters behind us." -- CEO Richard Fuld on Sept. 10, 2008 (6 days until it implodes and goes belly up.) These days, he's answering questions for federal prosecutors in Brooklyn, Manhattan, and Newark.
Merrill Lynch " ...."
"I think proactive, aggressive risk management has put us in an exceptionally good position.... We have seen significant reductions in our exposure to lower-rated segments of the market." -- CFO Jeffrey N. Edwards, July 17, 2007.
Wamu puts the whammy on you
As the housing market has softened as expected, what I have really seen is a continued very good performance out of most parts of the portfolio." -- CEO Kerry K. Killinger on Jan. 17, 2007 (He's presently under investigation for fraud.).
Is everybody laughing?
(Thanks, Jon, for your insight!)
Saturday, January 17, 2009
The End of Wall Street as We Know It: Compelling 3 part on-line video introduction to the WSJ book by David Kansas
The following three videos are from the Wall Street Journal's website and are adapted from the book, The Wall Street Journal Guide to The End of Wall Street As We Know It, by David Kansas. The book, published by Collins books, will be released in paperback on January 27, 2009. The Kindle Edition is currently available.
Below each video, I've added some quotes and paraphrased some of the content. (I wasn't able to get the names of some of the people quoted from the videos.)
You'll have to buy the book to catch it all.
End of Wall Street: What Happened (Wall Street Journal, 1/05/09)
Chapter One:
"In the first of this three-part series, Journal reporters explain how the housing bubble inflated and burst, and why easy money led to the collapse of Wall Street's biggest financial institutions"
The push for home ownership from the government led Fannie Mae and Freddie Mac to lend home loans at lower rates than others. Banks tried to follow suit, in order not to lose market share, and look for ways to make money, such as offering sub-prime mortgages, which were offered to people with a higher risk, at a higher rate than prime mortgages.
To make more money, banks developed a strategy of "mortgage bundling", which in theory, would reduce the risk if a few of the mortgages weren't being paid. The bundles then were traded back. and forth. According to the WSJ video, these bundles were really like poisoned sausages.
In 2002, the Federal Reserve reduced short term lending rates to 1%, known on Wall Street at easy money. "All of the constraints seemed to go out the window". It was easy for everyone to borrow money and rely on credit cards. This period of easy money went on into 2007. People were qualified for large mortgages for homes that they should not have been allowed to purchase, given their incomes.
Investment banks found that they could rely on large amounts of borrowed money to finance their operations. This resulted in a surge of growth in Wall Street, and a growth in the amount of debt (leverage). New ways of dealing with investments emerged that were complicated to understand. These strategies and deals, on the surface, made Wall Street folks richer than before. The "herd" mentality set in, and the new sophisticated practices, relying on computer modeling to minimize the "risk", became acceptable for the norm.
As the market increased in size, banks came up with even new ways of managing risk. During the late 1990's, JP Morgan developed the concept of credit default swaps, which is insurance on the debt of a company. Once the insurance was purchased, if the company went belly-up, the owner of the insurance would make money. This concept was initially practiced during the 1800's when people laid bets on weather or not a ship would return from sea. People were greedy and sank ships, so friends could collect the insurance.
The same sort of thing happened during the present crisis. Two hedge funds managed by Bear Stearns, a large Wall Street investment company, imploded. Billions of dollars of bonds were sold, and investors demanded to get back cash.
End of Wall Street: Why it Happened (Wall Street Journal, 1/05/09)
Chapter Two:
"What was going through the minds of CEOs, corporate boards, fund managers and mortgage lenders as they created hard-to-understand derivatives Warren Buffett once called "weapons of financial mass destruction."
"There is plenty of blame to go around. I think in retrospect that lots of people who were doing stupid things." -Alan Murray, WSJ Deputy Managing Editor
"..The regulators did not keep a careful eye on what was happening on Wall Street. Indeed, in some cases, they looked the other way. The regulators were too interested in watching Wall Street succeed in going from rich to riches. -Dave Kansas
"The purpose of a regulator is to make sure that the banks DO have risk controls, and that they are aware of what is going on."- Daniel Hertzberg
"Alan Greenspan... believed that complex derivatives, complex investment instruments, were ultimately good, healthy, and safe for the economy. Warren Buffet, the greatest investor in America, said these were weapons of financial mass destruction...After his term, he was called back to congress to testify in relation to the financial crisis. In that testimony, he conceded that perhaps he had been wrong about derivatives and the need for greater regulation in the financial system." -David Kansas
"...so the things we got wrong were not details. The things we got wrong were major checks and balances and safety valves in the global financial system." -David Wessel, WSJ Economics Editor
"The story of the credit rating agencies is a story of a colossal failure" -Henry Waxman, House Oversight Committee Chairman
"There were huge failures of the ratings agencies, who clearly didn't understand what they were giving triple A ratings to, because suddenly they don't have triple A ratings any more, and that is a huge failure..."
(Banks stopped lending money. The economy basically stopped.)
"At some point, there needs to be a longer term solution. We're still in crisis management mode. They haven't even started to figure this thing out, but the entire financial architecture is going to have to be reconsidered as a result of what we've just been through."
End of Wall Street: What Happens Next (Wall Street Journal, 1/05/09)
Chapter Three:
"This final chapter of the crisis on Wall Street tells the story of the $700-billion bailout, as seen through a reporter's eyes, and looks at what's ahead for the global economy."
"You have the destruction of the US financial industry. People don't want to say it, but, it's been destroyed."
"...This is one of the reasons why the calamity was so severe, because everyone had the same bets going on at the same time."
"We've come to believe all these things about the institutions in our country, that is supposed to give you a sense of well-being or confidence, but the financial system has failed us. The governmental system that is supposed to regulate, oversee this, direct this financial system utterly failed us. We as individuals took as much money as we could, as fast as we could, in a way that has failed the country."
"For too many years, people borrowed too much, spent too much, lived beyond their means, and the time of reckoning has come, too all of us."
"I think we've been living in a consumer-debt driven era for quite a long time."
RELATED:
Interview of Dave Kansas, Amazon Kindle's Blog
Below each video, I've added some quotes and paraphrased some of the content. (I wasn't able to get the names of some of the people quoted from the videos.)
You'll have to buy the book to catch it all.
End of Wall Street: What Happened (Wall Street Journal, 1/05/09)
Chapter One:
"In the first of this three-part series, Journal reporters explain how the housing bubble inflated and burst, and why easy money led to the collapse of Wall Street's biggest financial institutions"
The push for home ownership from the government led Fannie Mae and Freddie Mac to lend home loans at lower rates than others. Banks tried to follow suit, in order not to lose market share, and look for ways to make money, such as offering sub-prime mortgages, which were offered to people with a higher risk, at a higher rate than prime mortgages.
To make more money, banks developed a strategy of "mortgage bundling", which in theory, would reduce the risk if a few of the mortgages weren't being paid. The bundles then were traded back. and forth. According to the WSJ video, these bundles were really like poisoned sausages.
In 2002, the Federal Reserve reduced short term lending rates to 1%, known on Wall Street at easy money. "All of the constraints seemed to go out the window". It was easy for everyone to borrow money and rely on credit cards. This period of easy money went on into 2007. People were qualified for large mortgages for homes that they should not have been allowed to purchase, given their incomes.
Investment banks found that they could rely on large amounts of borrowed money to finance their operations. This resulted in a surge of growth in Wall Street, and a growth in the amount of debt (leverage). New ways of dealing with investments emerged that were complicated to understand. These strategies and deals, on the surface, made Wall Street folks richer than before. The "herd" mentality set in, and the new sophisticated practices, relying on computer modeling to minimize the "risk", became acceptable for the norm.
As the market increased in size, banks came up with even new ways of managing risk. During the late 1990's, JP Morgan developed the concept of credit default swaps, which is insurance on the debt of a company. Once the insurance was purchased, if the company went belly-up, the owner of the insurance would make money. This concept was initially practiced during the 1800's when people laid bets on weather or not a ship would return from sea. People were greedy and sank ships, so friends could collect the insurance.
The same sort of thing happened during the present crisis. Two hedge funds managed by Bear Stearns, a large Wall Street investment company, imploded. Billions of dollars of bonds were sold, and investors demanded to get back cash.
End of Wall Street: Why it Happened (Wall Street Journal, 1/05/09)
Chapter Two:
"What was going through the minds of CEOs, corporate boards, fund managers and mortgage lenders as they created hard-to-understand derivatives Warren Buffett once called "weapons of financial mass destruction."
"There is plenty of blame to go around. I think in retrospect that lots of people who were doing stupid things." -Alan Murray, WSJ Deputy Managing Editor
"..The regulators did not keep a careful eye on what was happening on Wall Street. Indeed, in some cases, they looked the other way. The regulators were too interested in watching Wall Street succeed in going from rich to riches. -Dave Kansas
"The purpose of a regulator is to make sure that the banks DO have risk controls, and that they are aware of what is going on."- Daniel Hertzberg
"Alan Greenspan... believed that complex derivatives, complex investment instruments, were ultimately good, healthy, and safe for the economy. Warren Buffet, the greatest investor in America, said these were weapons of financial mass destruction...After his term, he was called back to congress to testify in relation to the financial crisis. In that testimony, he conceded that perhaps he had been wrong about derivatives and the need for greater regulation in the financial system." -David Kansas
"...so the things we got wrong were not details. The things we got wrong were major checks and balances and safety valves in the global financial system." -David Wessel, WSJ Economics Editor
"The story of the credit rating agencies is a story of a colossal failure" -Henry Waxman, House Oversight Committee Chairman
"There were huge failures of the ratings agencies, who clearly didn't understand what they were giving triple A ratings to, because suddenly they don't have triple A ratings any more, and that is a huge failure..."
(Banks stopped lending money. The economy basically stopped.)
"At some point, there needs to be a longer term solution. We're still in crisis management mode. They haven't even started to figure this thing out, but the entire financial architecture is going to have to be reconsidered as a result of what we've just been through."
End of Wall Street: What Happens Next (Wall Street Journal, 1/05/09)
Chapter Three:
"This final chapter of the crisis on Wall Street tells the story of the $700-billion bailout, as seen through a reporter's eyes, and looks at what's ahead for the global economy."
"You have the destruction of the US financial industry. People don't want to say it, but, it's been destroyed."
"...This is one of the reasons why the calamity was so severe, because everyone had the same bets going on at the same time."
"We've come to believe all these things about the institutions in our country, that is supposed to give you a sense of well-being or confidence, but the financial system has failed us. The governmental system that is supposed to regulate, oversee this, direct this financial system utterly failed us. We as individuals took as much money as we could, as fast as we could, in a way that has failed the country."
"For too many years, people borrowed too much, spent too much, lived beyond their means, and the time of reckoning has come, too all of us."
"I think we've been living in a consumer-debt driven era for quite a long time."
RELATED:
Interview of Dave Kansas, Amazon Kindle's Blog
Monday, December 15, 2008
Unregulated Funds of Funds & Bernie Madoff: Videos from CNBC
SIPC Liquidating Madoff Securities' Assets
Future of Hedge Funds
Revealing Video: Madoff
(Bernie Madoff- In his own words)
Zuckerman on Madoff
Zuckerman did not know that 30 Million of his charitable funds were funneled by a fund manager into Madoff's scheme. It was part of another fund that put 9 billion with Madoff. This calls into question the "fund-to-fund" methods of fund management, without due diligence.
Madoff Fallout
Future of Hedge Funds
Revealing Video: Madoff
(Bernie Madoff- In his own words)
Zuckerman on Madoff
Zuckerman did not know that 30 Million of his charitable funds were funneled by a fund manager into Madoff's scheme. It was part of another fund that put 9 billion with Madoff. This calls into question the "fund-to-fund" methods of fund management, without due diligence.
Madoff Fallout
Sunday, December 14, 2008
The Walking Zombies of Wall Street: Video Discussion by WSJ's Evan Newmark and Dennis Berman
The problem? How will Wall Street bankers make money? What jobs will they do?
"They just don't have much work. Debt and stock markets are virtually shut, merger volume is down by 28%, and whole lines of structured finance are closed for good"
Sunday, October 26, 2008
A Primer on Credit Default Insurance, and more, from the New York Times
Via Visualizing Economics:
Credit Swaps Insurance Market: 2000-2007
New York Times Graphic: 2/17/08
New York Times Graphic: 2/17/08
February 17, 2008 (Gretchen Morgenson, NY Times)
Arcane Market is Next to Face Big Credit Test
February 27, 2008
Small and Midsize U.S. Banks Beginning to Struggle in Credit Crisis
"..But the breadth and depth of the current troubles have caught bank executives by surprise."
Related NY Times Graphic:
2007
Who's Watching Your Money? (Robert M. Morgenthau, April 30, 2007, NY Times Op Ed)
"...the United States Supreme Court upheld an ill-advised regulation issued by the Office of the Comptroller of the Currency, exempting subsidiaries of national banks from regulation by state banking authorities. This regulation makes the comptroller the exclusive regulator of these banks, even though the office is financed almost entirely by the banks it oversees...."
2005
A Hands-Off Policy on Mortgage Loans (Edmund L. Andrews, NY Times Business, July 14, 2005)
2005 Related NY Times Graphic:
2005
Betting on Rates (NY Times Graphic)
Credit Swaps Insurance Market: 2000-2007
New York Times Graphic: 2/17/08
New York Times Graphic: 2/17/08
February 17, 2008 (Gretchen Morgenson, NY Times)
Arcane Market is Next to Face Big Credit Test
"The market for these securities is enormous. Since 2000, it has ballooned from $900 billion to more than $45.5 trillion — roughly twice the size of the entire United States stock market."
"No one knows how troubled the credit swaps market is, because, like the now-distressed market for subprime mortgage securities, it is unregulated. But because swaps have proliferated so rapidly, experts say that a hiccup in this market could set off a chain reaction of losses at financial institutions, making it even harder for borrowers to get loans that grease economic activity."February 27, 2008
Small and Midsize U.S. Banks Beginning to Struggle in Credit Crisis
"..But the breadth and depth of the current troubles have caught bank executives by surprise."
Related NY Times Graphic:
2007
Who's Watching Your Money? (Robert M. Morgenthau, April 30, 2007, NY Times Op Ed)
"...the United States Supreme Court upheld an ill-advised regulation issued by the Office of the Comptroller of the Currency, exempting subsidiaries of national banks from regulation by state banking authorities. This regulation makes the comptroller the exclusive regulator of these banks, even though the office is financed almost entirely by the banks it oversees...."
2005
A Hands-Off Policy on Mortgage Loans (Edmund L. Andrews, NY Times Business, July 14, 2005)
"The reason is that federal banking regulators, from the Federal Reserve to the Office of the Comptroller of the Currency, have been reluctant to back up their words with specific actions. For even as they urge caution, officials here are loath to stand in the way of new methods of extending credit."
""We don't want to stifle financial innovation," said Steve Fritts, associate director for risk management policy at the Federal Deposit Insurance Corporation. "We have the most vibrant housing and housing-finance market in the world, and there is a lot of innovation. Normally, we think that if consumers have a lot of choice, that's a good thing.""
"...Despite their hands-off approach, some regulators are worried that banks and other mortgage lenders may not have properly judged the risks to themselves. They warn that speculative buying has increased, with many people hoping to quickly resell houses and condominiums before the construction is even finished..."2005 Related NY Times Graphic:
2005
Betting on Rates (NY Times Graphic)
Saturday, October 25, 2008
Massive Declines All Around the World; Wall Street Journal Video - Analysis of World
Is it impossible for experts to model the current state of the world economy?
For a few insights about the current global economic situation, take a look at the video analysis with Andy Jordan and Tom Lauricella from the Wall Street Journal below.
Are there glimmers of hope in this massive decline of global markets? How can we really know?
Market Mush
Related
WSJ Interactive Graphic of 10/24/08 Market Dynamics:
Tough Session: Stock declines started in Asia and quickly spread as markets opened for trading around the world
WSJ Article -10/25/08:
Fresh Tumult as Signs of Recession go Global
(Kelly Evans, Joellen Perry,Yumiko Ono and John Lyons)
"In rich countries and poor countries alike, markets are plunging, companies are scrambling for credit and cutting their growth plans and consumers are keeping cash in their pockets. The U.S. and some governments in Europe and Asia are spending heavily to stanch the problems in markets and Main Streets globally, but the attempts have not halted the damage."
For a few insights about the current global economic situation, take a look at the video analysis with Andy Jordan and Tom Lauricella from the Wall Street Journal below.
Are there glimmers of hope in this massive decline of global markets? How can we really know?
Market Mush
Related
WSJ Interactive Graphic of 10/24/08 Market Dynamics:
Tough Session: Stock declines started in Asia and quickly spread as markets opened for trading around the world
WSJ Article -10/25/08:
Fresh Tumult as Signs of Recession go Global
(Kelly Evans, Joellen Perry,Yumiko Ono and John Lyons)
"In rich countries and poor countries alike, markets are plunging, companies are scrambling for credit and cutting their growth plans and consumers are keeping cash in their pockets. The U.S. and some governments in Europe and Asia are spending heavily to stanch the problems in markets and Main Streets globally, but the attempts have not halted the damage."
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