Skip to main content

Features of the week

Welcome to this Friday's edition of, "Features of the week".

1. The financial system: What went wrong. Economist report.

2. "Ask the oil producers to rescue Wall Street". FT Comment piece notes that, "banks' appetite for risk-taking has vanished", and that the recent crisis could signal, "the beginning of a massive global credit crunch".

A key paragraph explains the recent shift in risk appetites:

"Banks want to shrink risk exposure, not maintain or expand it. Liquidity support by the Fed is an invitation to borrow from the central bank for on-lending to others – that is, to expand balance sheets. On the contrary, the banks and brokers want to contract their balance sheets."

For more on this, see the following item.

3. "Can't get a loan? You're not alone". A follow-up to our recent post, "Money is cheap and unavailable", that explains why credit is suddenly so tight.

4. FT's John Authers on the recent drop in commodity prices.

5. NY Times on a global need for grain that farm's can't fill.

6. The Oil Drum looks at food to 2050.

7. Marc Faber on the problem with artificially low interest rates.

8. Politicians can get away with starting wars, but not with hiring a prostitute. Think about that one.

9. A new Great Depression? It's different this time. See also, "Here come the modern 1930s".

10. The bottom will remain elusive. Chris Puplava's recent FSO market wrap up.

11. Nimble and bold bond managers take advantage of mispricings.

12. "The time is now...Here's what to do...". The Financial Philosopher on living life in the present moment.

Thanks for reading Finance Trends Matter. Enjoy your holiday weekend.

Popular posts from this blog

Seth Klarman: Margin of Safety (pdf)

Welcome, readers! Signup for free email updates at the Finance Trends Newsletter . Update: PDF links removed due to DMCA notice. Please see our extensive Klarman book notes below. New visitors, please check the Finance Trends home page for all new posts. Here's something for anyone who has been trying to get a look at Seth Klarman's now famous, and out of print, 1991 investment book, Margin of Safety .  My knowledge of value investing is pretty much limited to what I've read in Ben Graham's The Intelligent Investor (the book which originally popularized the investment concept of a "Margin of Safety"), so check out the wisdom from Seth Klarman and other investing greats in our related posts below. You can also go straight to Ronald Redfield's Margin of Safety book notes .    Related posts: 1. Seth Klarman interviews and Margin of Safety notes     2. Seth Klarman: Lessons from 2008 3. Investing Lessons from Sir John Templeton 4.

Slate profiles Victor Niederhoffer

Slate's recent profile of writer/speculator, Vic Niederhoffer has been getting some attention from traders and finance types in recent days. I thought we'd take a look at it here too, to offer up some possible educational value from Vic's experiences with trading and loss. Here's an excerpt from Slate's profile of Victor Niederhoffer : " I've enjoyed getting your e-mails. It sounds like you've thought a lot about being wrong. Well, the reason you contacted me, to call a spade a spade, is that I'm sort of infamous for having made a big, notorious, terrible error not once but twice in my market career. Let's talk about those errors. The first was your investment in the Thai baht, which pretty much wiped you out when the Thai stock market crashed in 1997. I made so many errors there it's pathetic. I made one of my favorite errors: "The mouse with one hole is quickly cornered." That is key. There are certain decisions you make in li

Clean Money - John Rubino: Book review

Clean Money by John Rubino 274 pages. Hoboken, New Jersey John Wiley & Sons. 2009. 1st Edition. The bouyant stock market environment of the past several years is gone, and the financial wreckage of 2008 is still sharp in our minds as a new year starts to unfold. Given the recent across-the-board-declines in global stock markets (and most asset classes) that have left many investors shell-shocked, you might wonder if there is any good reason to consider the merits of a hot new investment theme, such as clean energy. However, we shouldn't be too hasty to write off all future stock investments. After all, the market declines of 2008 may continue into 2009, but they may also leave interesting investment opportunities in their wake. Which brings us to the subject of this review. John Rubino, author and editor of GreenStockInvesting.com , recently released a new book on renewable energy and clean-tech investing entitled, Clean Money: Picking Winners in the Green Tech Boom . In Clean