Tag Archives: AIG

Explaining Derivatives to Michael Moore

            Documentarian Michael Moore’s latest project, Capitalism: A Love Story aimed at highlighting a number of flaws concerning the economic system upon which our country is built. In his film, Moore infiltrates Wall Street and Washington D.C. to “explore the root causes of the global economic meltdown.” In one scene, he attempts to make a citizens arrest of the AIG […]

US$/S&P 500 Correlation, Dollar Cheaper to Borrow Than the Yen, AIG Momentum Discussed

As the graph above illustrates, a serious correlation between the US$ and the US equity markets has developed over the last 9+ years. This correlation is strong and for policy makers in Washington, rather disturbing. The relationship is as follows: If the US$ loses value the equity markets have rallied and if the US$ strengthens equity markets have sold off. […]

News that Moves: Nassim Taleb & Mark to Mark Rules / AIG Responsible for Banks’ Profitability

Nassim Taleb: A brilliant analogy explaining the absurd and fraudulent idea of changing the mark to mark (MtoM) rules for banks. As the theory goes, under the MtoM rules of today banks are forced to use current prices to value assets they intend to hold long term. The proponents of a rule change blubber that this is unfair because the […]