Obama Affair

There are several ways to take this.  One, the story was planted by the Obama people to get the public’s mind off the gigantic tax raise that they are going to get in 2011.  The Obama brain trust figures evangelical …






Text of a Wall Street Email

Before the internet, the absolute best jokes came from trading floors around the world.  When a major event happened, it only took minutes for a joke to be transferred and traders all over laughing.  Most traders have a cynical sense …






Dividend Tax Raised In Senate Budget Bill

DemocratsSocialists passed an increase in the dividend tax in the Budget Committee. The tax will go from 15% to 39.5%. If you make more than $250,000 per year, the tax goes up an extra 3.8%.  This is insane.  There are …






Mark to Market and Goldman Sachs CFO David Viniar and Clearing

Mr. David Viniar is the Chief Financial Officer of Goldman Sachs.  Yesterday, he was questioned by the Senate Finance Committee. Financial testimony is excruciatingly hard to follow. It is very difficult because of the amount of “shop talk” in Finance. …






More on the Goldman Hearings

This afternoon I did a short appearance on Fox Business with Liz Clayman.  I made the point that the market rallied today after the Senate again voted to table the Financial Reform package.  She made the point that Goldman Sachs …






Goldman Hearings

“How much of that shitty deal did you sell to your clients?”-Senator Carl Levin. Goldman Sachs was set up yesterday to be the whipping boy of the financial crisis. They are also the usher for the financial reform bill. There …






Figure of the Day-April 27

Today is Financial Literacy Day in the United States.  This is a good idea.  Kids should be taught basic microeconomics starting in Kindergarten.  Fortunately, microeconomics if taught correctly is apolitical.  The politics are in macroeconomics. Maybe someone ought to to …






Mr. Trichet

Today, Jean Claude Trichet spent a little time in Chicago. He gave a short speech at the University Club, and then took some Q+A. Mr. Trichet is a life long French government civil servant. He made many statements, but basically …






More on the Dodd Bill, courtesy of the Oracle of Omaha

Warren Buffett has spent the last ten years or so lecturing everyone on the dangers of derivatives. One good aspect of the Dodd bill is a little sunshine has spread into the Berkshire empire. While Mr. Buffett rails against everyone …






Traders and Their Contests

There are many stories of from the trading rooms and trading floors of boorish behavior by traders.  The Wall Street Journal today has an article on the “take no prisoners” attitude of traders at Goldman.  Allegedly they had, wait for …






Trust Fund Kids and Their Money

Since America was created, the world has seen dramatic wealth creation.  It wasn’t luck.  It was the entrepreneurial spirit of America.  The government culture also fostered this entrepreneurial culture.  Low taxes, low regulation, government stayed out of the way of …






Figure(s) of the Day $2-$14

Bjorn Lomborg is a statistician and scientist. He was given the project of researching global warming, and found that we were actually cooling!   He was pilloried by the European scientific community for not going with the flow.  But, the …






Earth Day and farm subsidies

The greenies rejoice in this day.  However, they talk about recycling(which in many cases is actually WORSE for the environment), battery powered cars (which are actually worse for the environment than clean modern diesel cars) and just feel happy and …






Contributions to Society

There is a throwaway line used by socialists to inject guilt into the conversation when talking about things. What is the “contribution to society”? To be blunt, that’s a line that is full of BS. The chancellor, Alistar Darling used …






Tax the Banks!!!! Not.

Great Britain’s Prime Minister Gordon Brown has called for a bank tax.  Now the IMF is calling for a bank tax.  This is a far reaching tax.  It is a tax on productive capital and will decrease GDP across the …






Dodd bill-Part 2, OTC markets

The Dodd bill attempts to tame over the counter (OTC) markets with more regulation.  They also aim to transfer much of the trading from a B2B business model and put an intermediary in between each of the B’s.  B to …






Gross-Gangster Government at it's Finest

YouTube – Rush: White House buys SEC & Goldman Sachs search keywords Click the link and listen.  Pretty gross.  Obama purchases the Google search, “Goldman Sachs SEC”; so when you search that term, you are redirected to the site of …






Dodd Bill Front and Center

The debate over the highly bureaucratic and highly regulatory Dodd bill has begun. Unfortunately, Senators don’t look at things from different angles. This bill does nothing for market structure. Market structure changes would re-align incentives causing the market to be …