• Grim reaper
    October 26, 2018

    Collateralized debt obligations are back – that is scary!

    Collateralized debt obligations rise from the dead A frightening Halloween development – the rise from the dead of collateralized debt obligations ( CDOs). These little darlings nearly brought down the entire financial system in 2008. But the fees that CDOs generate are just too attractive for financial firms to pass them up. And even if they blew up and contributed to the Great Recession, nobody went to jail.

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  • smartphone and investment decisions
    October 24, 2018

    Smartphone – bad investment decisions

    Investment decisions based on smartphone research We think that using our smartphones to do research — including research for investment decisions — is a good thing. After all, how could using this tool to access more information be bad?   It turns out smartphones and investing go together like peanut butter and tuna fish. Two things that are just fine on their own but should not be combined.

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  • digital coins
    September 29, 2018

    Digital Coins, Tokens, Cryptocurrencies for Beginners

    Digital Coins Digital coins, virtual coins, tokens, or cryptocurrencies are bits of computer code. What makes this computer code special is that it is created on something called a “blockchain.” Blockchain technology allows people to engage in financial transactions directly with each other, without a bank or other financial intermediary. Transactions taking place on a blockchain are protected through cryptography and recorded on thousands of identical computer ledgers all over the world. There are some great introductions to blockchain technology and bitcoin that you can watch on YouTube. Here are a few I have blogged about previously. http://bit.ly/2xKWjWS http://bit.ly/2Iowr70  

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  • September 7, 2018

    Regrets of creator of collateralized mortgage obligation

    Lew Ranieri regrets creating the CMO “‘I’m the guy who played a central role in this home thing and I regret it because…it got abused beyond everybody’s imagination, ‘” says Lewis Ranieri, creator of the collateralized mortgage obligation (CMO), according to the Wall Street Journal. Ranieri’s creation of the CMO was nifty financial engineering by a sophisticated Wall Street investment banker that revolutionized the home mortgage market. But the CMO ended up being a financial weapon of mass destruction that crashed the global economy in 2008. The CMO brought us the Great Recession, from which we are still recovering.

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