Just what is leverage anyway?

I was responding to some comments to a post I made to www.seekingalpha.com a few minutes ago, when I said something that I think needs to be explained further.  I mentioned “leverage” and since that’s been in the news (especially regarding financial stocks) quite a lot over the past few months, I decided to expound […]

Who is this guy Margin – and why does he keep calling?

Nice article in the NY Times today about some of the problems in the financial world.  I hate to say I told you so (not really, but it’s sounds slightly less smug) but I’ve said all of this before.  Despite Mr. Krugman’s pessimism, he is still underestimating the size of the problem.  For example he says […]

Derivative Disaster

Interesting daily update from The Daily Reckoning.com.au today.  The Mogambo Guru said (in part!): I know what will happen in a crisis, because I know what the crisis is, which is that derivative holders will not be getting the money they were supposed to be getting, because the guys who owe them the money are […]