ABS

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The Perils of Modern Portfolio Theory

To my readers: thanks for your responses to yesterday's article. I will do a follow up piece soon. If you have more comments please make them - they will help me with the piece. Main new concepts coming - need for a deliverable, speculators can't trade with speculators, only hedgers.

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Trust:3
Votes:13
Views:272

Why the TALF is Bad For America

March 5, 2009 - The recent Term Asset-Backed Securities Loan Facility (TALF) announcements bring to mind Einstein's definition of insanity - "doing the same things over and over again and expecting different results". It is well documented that securitization of loans, use of leverage, and government intervention...

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