Above is a video of a Presidential address to some members of Congress after a meeting with Treasury Secretary Tim Geithner this past Wednesday, February 25.In the last sentence of the speech (beginning at about 5:50 into this particular clip), the President declares: "I have the utmost confidence that, if these outstanding public servants standing...
Thursday, February 26, 2009
Guide the market's invisible hand with a higher principle?
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Monday, February 23, 2009
Professor Amar Bhide and his Praise of More Primitive Finance
In the previous post, we linked to the speech by Gerry Frigon given on January 26 in which Gerry showed a slide covered with modern portfolio theory algorithms and said, "This is what's wrong with Wall Street, and it's been wrong for about thirty years now."What's wrong, he said, is "the financial engineering that's taken place on Wall Street over...
Wednesday, February 18, 2009
"Managing Investments in the New Era"
Recently, Gerry Frigon was invited to speak at the Andre, Morris & Buttery Central Coast Business Symposium on January 26, on the topic of "Managing Investments in the New Era."
Above is a link to the full presentation, complete with all the slides and Gerry's discussion (39 minutes).
After you watch the presentation, you...
Tuesday, February 17, 2009
Return of the 1970s, part 2
During historic times such as this one, it is useful to go back in history to glean potential lessons.Investors observing the massive increase in government spending are justifiably concerned about two negative side effects: a reduction in economic growth as government spending reapportions funds from the private sector to the public sector, and an...
Tuesday, February 10, 2009
Red herrings
The "new Financial Stability Plan" announced this morning by Treasury Secretary Tim Geithner made no mention of the removal of mark-to-market accounting, despite hints last week that the government might finally remove the disastrous accounting rule at the heart of the ongoing banking problem.In fact, he made a statement which appears to perpetuate...
Wednesday, February 04, 2009
Clayton Christensen, disruptive technology, and your portfolio recovery plan
The above image of Harvard Business School Professor Clayton M. Christensen is a link to a recent interview in EE Times with Professor Christensen.The interview, and the work of Professor Christensen, is noteworthy on many levels, and contains important insights with which all classic growth investors should become familiar.Professor Christensen's...
Monday, February 02, 2009
First, do no harm
The current stimulus plan working through Congress is a terrible plan! It is full of pork spending and little incentive for growth. The best solution for solving the current crisis includes an end to mark-to-market accounting, a program of incentives to business and investors which keeps marginal tax rates low (preferrably flat as well), and continued...
