In human terms, we are most often best off with the via media, that is, the middle way. So it is with corporate cash. The first article I wrote on the internet (in 2003) argued for the value of excess cash in the hands of...
Read MoreIf someone were to ask me my opinion on Junk Bonds at present, fool that he would be to ask me because I know real experts elsewhere, I would say this: They are good for a speculative trade, but dumb money has arrived. Be ready...
Read MoreThere are two things that I want to comment on Fed policy this evening: Transparency is overrated, and Bernanke does not understand savings.Transparency is OverratedEver heard of the phrase “data overload?” Greenspan...
Read MoreDecember 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...
Read MoreI 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...
Read MoreThere have been a lot of articles dealing with use of corporate free cash flow lately:Dividends — get them, are they sustainable?Buybacks — do they add value or not?Acquisitions — are they overpaying? What are...
Read MoreIn the recent run-up, there was talk of the infallibility of equities. This led to a higher level of variable compensation in the economy through option and share issuance and low pressure to raise fixed wages. This was yet...
Read MoreRisk 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...
Read MoreFrom a reader, ptuomov:If you run a regression of the magenta line on variables that have similar trends, you will get a spuriously high R2. I think you should try to explain the weekly changes in the magenta series instead. (I...
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