Tag Archives: Cam Harvey

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

The Fall of the House of TARP: Time for Plan B

I am not surprised that the Troubled Asset Relief Program (TARP) failed. The paper that I put out on Friday detailed the numerous problems with the TARP.  My paper argued that the TARP had at least three major flaws.

My Proposal to End the Credit Crisis and Minimize Damage to the Real Economy

We have been trying to put out one fire after another and it is time to get ahead of the problem.  One day it is money market funds, the next is Washington Mutual, and TARP over the weekend. We need … Continue reading

Contagious Systemic Risk: My Warning in 2005

Durham , NC — In late January 2005, Fuqua finance professor Cam Harvey traveled to Davos, Switzerland, for the world’s most important annual economic forum. From his panel discussion on corporate earnings to his encounters with senators and celebrities, Harvey … Continue reading

The Risk We Face: AIG Nationalization and Other Thoughts

  The extraordinary risk will not be resolved by the nationalization of AIG or steps to make it easier to borrow from the Federal Reserve. We face the specter of the ‘night of the living dead scenario’ where there are … Continue reading

The Night of the Living Dead

We face the specter of the ‘night of the living dead scenario’ where there are hundreds if not a thousand financial institutions are operating today – but are dead if mark to market accounting was applied to their assets. In … Continue reading