Wall Street Bailout: The World’s Largest Sovereign Wealth Fund?

More than 20 countries have set up sovereign wealth funds while a dozen more have expressed interest in establishing them. Many of these sovereign wealth funds are picking up stakes in U.S. companies, which is raising concerns about the need for regulating them. Up until the $700 billion bailout, which effectively is a . . . → Read More: Wall Street Bailout: The World’s Largest Sovereign Wealth Fund?

Warren Buffet’s Appeal to Our Dead Consumer Culture: ‘Buy American’

In an op-ed piece of October 17’s New York Times world-famous entrepreneur and financier Warren Buffet urged American investors to return to the stock market and bet on the long term future success of the United States. “Buy American,” Buffett’s headline reads. “I am.”

The essay was a vote of confidence from a successful . . . → Read More: Warren Buffet’s Appeal to Our Dead Consumer Culture: ‘Buy American’

What Can the Art Market Tell Us About Our Economy?

When compared to more traditional investment options, the contemporary art market is highly inefficient – but this hasn’t dampened the enthusiasm of buyers and investors.

The contemporary art market has left its critics standing. Many presumed that it would be one of the crisis’ first victims as collectors tightened their purse strings and investors . . . → Read More: What Can the Art Market Tell Us About Our Economy?

Senate Investigation: Major Financial Institutions Helped Hedge Funds Avoid Taxes

A year long probe by Senate Permanent Subcommittee on Investigations which relied on internal bank documents and emails has found that some of the nation’s biggest investment banks and brokerage firms including Morgan Stanley, Citigroup, Lehman Brothers, and Merrill Lynch & Co marketed allegedly abusive transactions that helped foreign hedge fund investments avoid . . . → Read More: Senate Investigation: Major Financial Institutions Helped Hedge Funds Avoid Taxes

America’s Aging Workforce: It’s Time for Employers to Accept Reality

The current financial crisis in the U.S. is hitting everyone hard, perhaps not least the older population. Many in this age group will have taken early retirement in recent years and may now be starting to feel the pinch due to unexpected price rises. Some of these seniors, along with others who just miss . . . → Read More: America’s Aging Workforce: It’s Time for Employers to Accept Reality

Financial Bailouts: Is the U.S. on the Road to Socialism? (Part 1)

All nation-states reside somewhere on the continuum between laissez-faire and total-state central planning. No country is completely capitalist and no country (with the possible exception of North Korea) is entirely socialist. So how are we to define roughly “capitalist” and “socialist” countries? Where is the dividing line? How do we know if we are . . . → Read More: Financial Bailouts: Is the U.S. on the Road to Socialism? (Part 1)

Collapse of Auction Rate Securities Market Under Investigation by Justice Department

An auction rate security generally refers to a debt instrument with a long-term nominal maturity for which the interest rate is regularly reset through periodic auctions. It allows issuers to borrow for the long-term but at lower, short-term interest rates.

The auction-rate securities market involved investors buying and selling instruments that resembled corporate debt whose interest rates . . . → Read More: Collapse of Auction Rate Securities Market Under Investigation by Justice Department

Chaos Theory in the Financial World: A New Trend in Central Banks’ Monetary Policies (Part I)

On the surface it seems simple enough. The Federal Open Market Committee (FOMC) of the Federal Reserve adjusts interest rates to manage both inflation and the economy. When inflation rises, the FOMC raises rates, which limits the money supply, raises the cost of credit and slows economic expansion to a manageable level. When inflation . . . → Read More: Chaos Theory in the Financial World: A New Trend in Central Banks’ Monetary Policies (Part I)

Thoughts on Game Theory: Why Do Restaurants Serve My Food to Everyone?

Find out how restaurants serve everyone each other’s food in order to increases their profits! . . . → Read More: Thoughts on Game Theory: Why Do Restaurants Serve My Food to Everyone?

Consumerism in the U.S. Healthcare System: Why We All End Up Paying for the Most Expensive Treatments

The theme of my last several posts has been the profit motive inherent in the medical system. Many parties appear to be responsible for this including industry and the physician’s lobby. I submit that the most responsible party is the consumer. The consumer is the one who demands the most advanced procedure, the best . . . → Read More: Consumerism in the U.S. Healthcare System: Why We All End Up Paying for the Most Expensive Treatments