Recent Commentaries tagged (public-policy)
A Proposal for Money Market Funds II
I thought that I had a really good proposal for dealing with money market fund problems. And it is good, far better than what the SEC is proposing. My proposal is better because it treats money market funds like ETFs -- they are pass-through vehicles, and as such, do not need capital buffers. And...
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Tags: banks | bonds | public-policy
Against Risk Parity
Many investment ideas are promising so long as few do them. Yes, there is an opportunity, but it is limited. "Shh, don't tell everyone about it."Thus, the concept of "risk parity." Lever every asset class up until it has the same volatility as common stocks. Under theoretical conditions, one c...
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Tags: academic-finance | asset-allocation | banks | bonds | macroeconomics | portfolio-management | public-policy | quantitative-methods | speculation | stocks | structured-products-and-derivatives
Redacted Version of the January 2012 FOMC...
December 2011January 2012CommentsInformation received since the Federal Open Market Committee met in November suggests that the economy has been expanding moderately, notwithstanding some apparent slowing in global growth.Information received since the Federal Open Market Committee met in Decembe...
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Tags: bonds | fed-policy | macroeconomics | public-policy | real-estate-and-mortgages | stocks
On Financial Intermediation
I appreciate Steve Randy Waldman, who writes the excellent blog Interfluidity. Even before I started blogging, while I was at RealMoney, we interacted over CPDOs, along with Alea, and several others that were onto the scam. That was a fun time, because aside from the Canadian rating agency Domi...
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Tags: banks | ethics | insurance | macroeconomics | public-policy
The Rules, Part XXIX
Risk premiums should never be capitalized, they should only be taken into income as earned.This may end up being another odd post of mine. I'm going to start writing about bank regulation, but I will end up talking about monetary policy.There are many people who hate the rating agencies. They ha...
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Tags: banks | bonds | macroeconomics | public-policy | quantitative-methods | real-estate-and-mortgages | the-rules
