Entries from October 2008

October 31, 2008

Credit Default Swaps, AIG, and the Fed – Will $123 Billion Be Enough?

Update on the Fed’s $123 billion in emergency lending to AIG. For those intrigued by my credit default swap post, there is a good article in yesterday’s New York Times. The article asks, “where are the funds being lent to AIG by the Fed going within the company” The American International Group is rapidly running [...]

October 30, 2008

It’s an Especially Good Year to Be a Wealthy High School Senior

How the Credit Crisis Will Make it Easier for Rich Kids to Get Into Their College of Choice You may have heard that a male student interested in the humanities has a better chance of being accepted to a prestigious liberal arts college than a comparably qualified female candidate. How about the tale of the [...]

October 29, 2008

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October 29, 2008

What is a Credit Default Swap and Why Should I Care?

Credit Default Swaps – A Primer A credit default swap is a type of credit derivative. Credit derivatives “derive” their value from an underlying credit instrument; generally the bonds of sovereign nations or the bonds of a corporate entity. In recent years, credit derivatives have been created that are based obligations rather than entities; one [...]

October 24, 2008

Nouriel Roubini’s Predictions get Freaky

Yesterday I wrote about Professor Nouriel Roubini’s predictions for continued stress in the U.S. economy. Roubini is predicting a prolonged recession lasting two years or longer. While I was writing, Roubini was in London predicting wide-spread market panic that would require a suspension of trading and temporary closure of the markets. (Video) and (Article) Panic, [...]

October 23, 2008

Obama and McCain – Where do they Stand on Immigration Reform?

You could be forgiven if you don’t know where the candidates stand on immigration. With the financial market meltdown in full swing and a full-blown media circus surrounding $150,000 shopping sprees and fair-weather fans, the press hasn’t had much time to talk about immigration. The Brookings Institution has published this fact sheet comparing the candidate’s [...]

October 23, 2008

Recession Will be Three Times Deeper than Recent Ones – NYU Economist Nouriel Roubini’s Grim Economic Outlook

The worst is still ahead… Nouriel Roubini, (aka Dr. Doom), has been amazingly prescient with his accurate predictions of how the credit crisis would unfold. He spoke at an NYU-Stern School of Business Panel last week and predicted the financial-market meltdown would trigger a prolonged recession lasting 18-24 months and quite possibly more. He said [...]

October 23, 2008

Answer to Yesterday’s Poll Question…

What was the top marginal federal tax rate for individuals in 1955? And the correct answer to yesterday’s poll question is…

October 22, 2008

Discovering Buffett’s Edge – How Progressive is the U.S. Federal Income Tax?

An Examination of the Recent History of the Effective Tax Rates of the 400 Highest Income Filers Part II of a multipart series Read Part I Warren Buffett has made a fortune through the shrewd allocation of capital. So far, no one has taken Warren’s million dollar challenge to his fellow dwellers in the penthouse [...]

October 20, 2008

Are you Paying a Higher Tax Rate than Warren Buffett?

Why America’s Richest Man Thinks He Should Pay More Taxes. Part I of a multipart series Warren Buffett, thinks the U.S. tax system is unfair. The $62 billion dollar man thinks he should pay more taxes, as a share of his income, than he does now. Buffett, know for his simple tastes (hamburgers and Cherry [...]