Monthly Archives: October 2008

Who deserves to be bailed out?

Image courtesy of Wikimedia Commons

I appeared on Business News Network to discuss: the missteps in implementing TARP, who should be bailed out, alternative plans to regenerate credit and the implications for the real economy. View the clip here.


Bank Earnings Are Impossible to Interpret

It is earnings season and many banks will be reporting their earnings. What are we to make of these earnings? In usual circumstances, it is hard to decode earnings. Today, it is next to impossible. By the way, why did … Continue reading


Deconstructing Vol

The VIX is hovering around 70%. This is an annualized volatility. Bringing it to a daily level, volatility would be about 4.5%. Hence, the VIX is telling us that market moves of up to +/- 9% should not be unexpected. … Continue reading


The D-word

The credit crisis is 13-months old. Unfortunately, policy makers have been late to the game. In addition, the game plan has changed so many times that it is not surprising that there is a general lack of confidence that we … Continue reading


Equity injection is not enough to get us out of this mess

The government doled out $125b of equity injection to 9 banks yesterday. It is a dramatic change from the original TARP proposal (to pay a premium price for toxic assets). I have advocated for weeks an equity injection (along with … Continue reading