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Lehman's Accounting `Repo 105 Shenanigans'

If Mark Twain had lived to see the first decade of the 21st century he'd have modified his famous quote to say, "There are lies, damn lies and CFE's (creative financial engineers)". The mystery of how Lehman Brothers was talking reassuring figures on declining indebtedness and healthy underlying trends until the day it collapsed has been solved. Now, thanks to bankruptcy examiner's exhaustive 2,200-page financial autopsy report, which took a year to write and cost taxp… Continue

Added by Bill M Wright on March 12, 2010 at 5:00pm — No Comments

Market Making You Nervous Nelly?

In 2009 the USA market had the greatest nine month advance since the 1930's. Now what are you planning to do with your money in 2010? Do you feel like nervous Nelly? No faith in the stock market, short-term outlook? Worried our government's monetary policy will lead to rapid inf… Continue

Added by Bill M Wright on March 11, 2010 at 12:03pm — No Comments

Confessions Of A Bull : Barton Biggs

Barton Biggs the crusty old 1999 Bear now turned Bull is betting on one more year of another positive market. Nothing like last year but still something better than a 1.8% Bank CD. Barton Biggs is a Wall Street legend. He's an individual whose advice I often follow. Recently The… Continue

Added by Bill M Wright on March 9, 2010 at 12:00am — No Comments

Why Stimulus Policy is Flawed at a Fundamental Level.... Eugene Fama summarises

This is a clear enough statement and makes complete sense to me.... by EUGENE F. FAMA There has been lots of response to my little essay on bailouts and stimulus plans. I will only comment on the negative ones that I think have merit and are overlooked in my original paper. First, however, I want to restate my argument in simple terms. 1. Bailouts and stimulus plans must be financed. 2. If the financing takes the form of additional government debt, the added debt displaces other uses of the… Continue

Added by Brent Wheeler on March 8, 2010 at 3:27am — No Comments

USA Boomer Generation ( retiring soon )

The Epic Story of A Generation Premieres Thursday, March 4 at 9p ET/PT Check CNBC for ongoing showings at CNBC BOOMERS Tom Brokaw defined the "Greatest Generation" and now he tells the story of their children -- the largest, most influential generation ever. While every generation has had common defining moments shaped by their times, it would be inappropriate to conclude all Boomers think alik… Continue

Added by Bill M Wright on March 4, 2010 at 8:00pm — No Comments

We're Getting More Social

We'd like to keep members updated on some of the new and existing features on your network that help you better use social media, to keep abreast of the latest financial content, knowledge, connections and opportunities on Finance 3.0 and our fast growing subsidiaries on other social platforms.
Announcing: Facebook Integration… Continue

Added by Finance 3.0 on March 2, 2010 at 6:34am — No Comments

The ROI of an ABC Project

This is the most common question that is asked to all the vendors that propose any concept, solution to any organization. I, as a management consultant have answered this question a lot of times. Surprisingly, when I am at the client’s place and see various internal projects (managed totally by the employees of the organization) launched, almost none of them are proved (or may be asked) on their positive ROI. They are run as a necessity and the outcome is ‘expected’ to be good but does not guara… Continue

Added by Rajendra Patil on March 2, 2010 at 3:17am — 1 Comment

Paul Volker & History of Inflation in US under President Jimmy Carter

History of Inflation In US.pdf Continue

Added by Muhammad Yaqub Virk on February 28, 2010 at 1:00pm — No Comments

USA Lending Declining as Bank Failures Keep Rising

This video about Utah's biggest bank recent failure is typical. While a few large National Banks have survived the crisis, it's the smaller regional and state banks who made lots of commerical realestate loans which are now defaulting. The choosen few jumbo federal chartered USA Banks may be in solid sound shape but the toll of small state / community bank failures just keeps climbing. Regulators closed 140 banks in 2009 and 20 todate in 2010. Still, total failures hav… Continue

Added by Bill M Wright on February 26, 2010 at 12:46am — No Comments

Some Important Stages in Our Understanding of Valuing a Firm

Double entry book keeping is, perhaps, our first attempt at
understanding the value of a business. A Franciscan monk Lucca Pacioli
is generally credited with inventing this system. Some maintain that
the monk merely documented the practices of Venetian merchants and that
double entry book keeping was first thought of by Fibonacci; in any
case the system was, without any doubts, invented by Italians. Pacioli
published his book containing, among other things, this fou… Continue

Added by Sachidanand (Sacha) Singh on February 22, 2010 at 12:00am — 2 Comments

The Best Time to Plant a Tree was 20 years back

I passed my management accountancy exam in 1992. This was the same time when Activity Based Costing, was at its peak (may be first peak). Although I was not aware that such a concept exists then. I heard about this concept

… Continue

Added by Rajendra Patil on February 13, 2010 at 3:28am — 2 Comments

Not Again

“Credit specialists at Citi are considering launching the first derivatives intended to pay out in the event of a financial crisis.” First the product, it is to be based on an index called CLX. From what I have been able
to gather CLX is a sum of Sharpe ratios of different market factors – equity volatilities, treasury rates etc. The exp

… Continue

Added by Sachidanand (Sacha) Singh on February 10, 2010 at 1:30pm — 3 Comments

Another Economic Bubble Burst Ahead - Part 2

In the first part of this article, the author provided the striking details of the need to be mindful of the economic pace of development of China. The suggestion was based on an exclusive analysis of economic growth characteristics of economic super powers from a phase of economic miracle to the phase of economic malaise. The author advocated for the need for policies that would mollify the negative impact on the world economy should there be any failure of the Chinese economy. In this second p… Continue

Added by Charles Horace Ampong on February 8, 2010 at 9:00pm — No Comments

Stating the Obvious - OECD and ECRI

These four self explantatory charts from a recent Morgan Stanley European equity strategy report - Equity implications of rollover in growth leading indicators - could'nt provide a bigger sell signal.

Here's the OECD World leading indicator at a 34 year high...

… Continue

Added by Daniel Chow on February 8, 2010 at 8:42am — 2 Comments

A Fat Tail Risk Metric

I read an interesting paper by Peter Conti-Brown (read here:http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1548892) on a proposed Fat Tail Risk Metric (FTRM). Conti-Brown argues that a central cause of the financial crisis is the failure of risk models to account for high impact, low probability events i.e. fat tail events and proposes mandatory disclosure of a firm’s all exposures - contingent liabilities, such as guar… Continue

Added by Sachidanand (Sacha) Singh on February 8, 2010 at 2:30am — 1 Comment

We Are So Screwed

"Our immersion in the details of crises that have arisen over the past eight centuries and in data on them has led us to conclude that the most commonly repeated and most expensive investment advice ever given in the boom just before a financial crisis stems from the perception that 'this time is different.' "That advice, that the old rules of valuation no longer apply, is usually followed up with vigor. Financial professionals and, all too often, government leaders explain that we are doing… Continue

Added by Daniel Chow on February 2, 2010 at 3:45am — 2 Comments

Corporate Valuation Modeling Book

Hi everyone, Some of you have taken an Enstruct course, but I thought I would announce that the first course is finally in book format and available from Wiley (for some reason they took forever to get it to print!): http://www.amazon.com/Corporate-Valuation-Modeling-Step-Step/dp/047048179X/ref=sr_1_1?ie=UTF8&qid=1250183661&sr=8-1 If you have any qu… Continue

Added by Keith Allman on February 1, 2010 at 6:17pm — No Comments

You’re in Good Company

We recently concluded the Finance 3.0 member’s survey, and wanted to share the summary results with you, as well as announce the winners of our $50 cash prize. We hope you’ll enjoy finding out more about the types and profile of visitors to our community of over 50,000 registered members, and thousands more who've yet to sign up. In a nutshell, you will be pleased to know that you’re in good company… Let us start off by sharing with you with that visitors to Finance 3.0 are a very, very wel… Continue

Added by Finance 3.0 on February 1, 2010 at 2:30am — 4 Comments

Stockholder Wealth Maximization

How? We first need to ask “ What factors determine the price of a company’s stock?” Three factors: - Any financial asset is valuable only if its generate cash flow - timing of cash flow matters because cash received sooner is better- it can be reinvested to produce additional income - Investors are averse (strongly opposed) to risk, they will pay more for a stock whose cash flows are relatively certain than for one with relatively risky cash flows What to do? Increasing cash flows Speeding them… Continue

Added by bruce on January 31, 2010 at 3:43am — No Comments

Inflation and Its Effects on the Economy

FINANCIAL MARKETS FAILURE & NEED FOR A NEW FIANCIAL CAPITALISM MODEL : Current crisis in private US investment banks and developed economies financial markets signifies a change in the existing models of financial capitalism based upon the perception that financial stability stems from self regulation of financial markets where profit is considered final criteria for assessing and mitigating financial risks. This crisis has exposed the fallacy of this perception as this model has miserably… Continue

Added by Muhammad Yaqub Virk on January 28, 2010 at 11:56am — No Comments

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