Returns on Equity Amid the Financial Crisis, Redux
To have a full version of my article, with the equations that explain my reasoning, Returns on Equity amid the Financial Crisis. Thanks to all who read...
Read MoreAuthor: David Merkel
Returns on Equity Amid the Financial Crisis
I wrote the following for the 2012 Baltimore Business Review. When it is publicly available on the web, I will highlight it. For now, I will offer you the unedited version of my paper that will be published there: Returns on...
Read MoreIn Memoriam — Ron Smith
My friend Ron Smith has died. For those that do not live in Baltimore, the Ron Smith show was the leading radio show in Baltimore. I had the rare opportunity of being on the show three times out of the last three years. Even...
Read MoreWhy Profit Margins are High
Why are profit margins so high? I offer a few reasons:1) Those that fund equity have high demands placed on them. Many are pension plans and endowments, and they push firms to achieve higher profits. This is true whether the...
Read MoreMusing Over Glass-Stegall
This is one area where I would like feedback from my readers. My view is that the repeal of Glass-Stegall had little impact on the crisis. Most of the crisis occurred as a result of ordinary failures in investment banking, and...
Read MorePeak Credit
What I write here will not be rigorous. We’ve heard about “peak oil.” We’ve heard about other resources, and how production will decline over time. But what of credit? It isn’t that hard to create,...
Read MoreRedacted Version of the December 2011 FOMC Statement
November 2011 December 2011 Comments Information received since the Federal Open Market Committee met in September indicates that economic growth strengthened somewhat in the third quarter, reflecting in part a reversal of the...
Read MoreThe Gold Medal Gold Model
Eddy Elfenbein is a clever guy; he put together a model of gold prices that fits the data very well. Tonight, I will share my own variation on the model, and try to give an intuitive explanation of why it works. Ask yourself...
Read MoreIndustry Ranks December 2011
I’m working on my quarterly reshaping — where I choose new companies to enter my portfolio. The first part of this is industry analysis. My main industry model is illustrated in the graphic. Green industries are...
Read MoreImprove the Position
It’s hard to take a loss. But taking losses is necessary to avoid even larger losses.This is prompted by Barry Ritholtz tweeting to me a piece he wrote 3 months ago called, Take The Loss. Good piece, worth a read.What I...
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