Random Musing: mathematical models

Warren Buffett has done pretty well for himself, amassing a net worth north of $50 billion. Yet, for all his detailed analysis and combing through financial reports, he has never said he models things out to the nth degree.In fact, Buffett…

Europe is next

As you could probably tell -- from all the stories I have been writing about the Baltics, Denmark, Sweden, you name it -- I believe that Europe is the next leg down in the global housing bubble. As such, it will pay to focus as much…

Peer pressure and bubbles

What has the housing bubble told us about market efficiency, social psychology and economics? Quite a lot, I believe.In the aftermath of the housing bubble, one thing is for certain: we can throw out the inane "Efficient Market…

News round-up: 18 Aug 2008

Top BillingNo Limit to Greenspan's Once-In-A-Century Events: Caroline Baum - BloombergFinancial sector woesU.S. likely to recapitalize Fannie, Freddie: report - ReutersU.S. banks scramble to refinance maturing debt - FTAnalysts Said to…

Random Musing: London house prices

An article in today's Guardian says that London property prices are falling. In fact they fell over 5% in a single month.Asking prices in London fell 5.3% in August, according to the Rightmove house price survey - equivalent to a £21,000…

Relative value in financial services

Not every financial services sector company is a basket case destined for bankruptcy. There are many well-run lower risk organizations in the bunch. Moreover, let's not blame the banking model for individual companies' woes. The Economist…

Vision, Tactics, and Stubbornness

Judgment or Experience?Many American citizens claim our President needs a strategy and a vision for the future. The most common complaints are about a lack of vision on the economy, health care and in our response to terrorism and the war…

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