Debunking “The Big Short”: How Michael Lewis Turned the Real Villains of the Crisis into Heroes
How Michael Lewis’ The Big Short, whether for profit or by accident, has denied the public the truth about what really causes the crisis.
Read more...Category Archives: Risk and risk management
Medical Educators Launch Trials of Increased Sleep Deprivation of Physician Trainees Apparently in Violation of the Nuremberg Code
In a likely violation of the Nuremberg Code, a study increased the sleep deprivation of medical residents above already-high current levels.
Read more...CalPERS Used Sleight of Hand, Accounting Tricks, to Make False “There is No Alternative” Claim for Private Equity
CalPERS staff and outside experts went to considerable lengths distort data and abuse analytical methods to make the case that only private equity could offer the allegedly superior returns needed to meet CalPERS’ targets. The fact that CalPERS did not make an honest case for private equity suggests that no honest case could be made.
Read more...Nina Eichacker: Lessons from Iceland’s Financial Crisis
A look at Iceland’s financial crisis, why it happened and what can be done to mitigate the potential for similar chaos in the future.
Read more...Supervising Culture and Behavior at Financial Institutions
Financial regulators increasingly acknowledge organizational culture as a source of systemic risk, yet they have been loath to do more than influence compensation structures, since they do not want to be perceived to be interfering with management. This post describes a new approach in the Netherlands that
Read more...Foreign Banks Such as Deutsche Using Variant of Lehman “Repo 105” Balance-Sheet Tarting Up Strategy
Foreign Banks Such as Deutsche Using Variant of Lehman “Repo 105” Balance-Sheet Tarting Up Strategy
Read more...Negative Real Rates Signify a Broken Financial System
How the debate on negative real rates has missed role of demand for “safe” collateral for derivative positions, and why that is central.
Read more...The UK’s Money Laundering Mess (I)
The Billion Dollar Moldova Bank Scam: gateway to the UK’s money laundering mess
Read more...Glencore, Commodities Traders, and Systemic Risk
Mega commodities trader Glencore and its big peers are looking wobbly. How worried should you be?
Read more...Former State Chief Investment Officer Tells CalPERS and CalSTRS to Fire Consultant PCA Over Proposed Fix for Poor Private EquityPerformance
How CalPERS’ and CalSTRS’ private equity consultant PCA has demonstrated that it needs to go.
Read more...Wolf Richter: This is When Bonds Go Kaboom!
It’s getting tougher out there for our QE and ZIRP-coddled corporate junk-bond heroes.
Read more...Perry Mehrling: What Does Repo Do? And Can We Do Without It?
Repo is the system that failed during the financial crisis, leading the Fed to ride to banks’ rescue. Is repo any safer now?
Read more...Why is China finding it hard to fight the markets?
China’s market drama started in June this year with the collapse of the Shanghai stock exchange, followed by frantic interventions by the Chinese authorities. As if the estimated $200 billion already spent on propping up stock prices were not enough, China found itself in another battle with the market, defending the RMB against depreciation pressures after the PBoC devalued the RMB by nearly 2% on August 11. The cost of the foreign exchange intervention to keep the RMB stable is estimated at $200 billion.
Read more...Louis Proyect: A Brief Response to Joe Firestone on IT/Grexit
Why believing that there must be an easy way for Greece to pull of a Grexit does not make it so.
Read more...Wolf Richter: Foreign “Smart Money” Frets about Turmoil at Home, Flees, Plows into US Housing Bubble 2, Thinks it’s a “Safe Haven”
Lambert: Just what we need; more 1%-ers. And if turmoil in emerging markets keeps up, we’ll have more of ’em, as conditions “at home” sharpen. By Wolf Richter, a San Francisco based executive, entrepreneur, start up specialist, and author, with extensive international work experience. Originally published at Wolf Street. Wealthy, very nervous foreigners yanking their money […]
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