Funny stuff

Damn It Feels Good To Be A Banker -- A Wall Street Musical from Leveraged Sell-Out on Vimeo.

20% Of Valley Startups Can’t Get To Their Cash

20% Of Valley Startups Can’t Get To Their Cash

Today we learn a new word: Auction Rate Securities. Instead of being an investment tool, this tool has proven to be a liquidity facility for banks whose main job is to invest in bonds or debt with long maturity period. When credit rating of bond falls, it affects every security linked to it, creating this little yet intimidating liquidity crisis.

Now, I actually have a nice idea about developing derivatives. How about, for example, developing derivatives using the concept of annuity? A brilliant student of modest economic background can apply for this kind of student loan, and pays a modest amount back throughout his entire life. He or she will suffer less chance of bankruptcy, and bank will have better liquidity, less risk of student not being able to pay back and even potentially better return. Investor of this kind of security will be able to draw stable amount of money from this pool of money, making this security optimal for retirement fund. Besides, it can be also a form of charity, helping talented student move up social ladder without suffering suffocating financial pressure.

I must be a genius. Or dumb. Or too naiive.

Book Review: Greenspan's Bubble

It takes circa 13 hours to fly past the vast pacific ocean. On my trip back to Taiwan from San Francisco, I grabbed this book randomly in the hope that it might shorten my boring flight, and it did more than that.
Alan Greenspan, the ex-mythical figure of Fed, was mostly greeted with praises. Perhaps just like spoiled children who love their parents, Alan Greenspan is loved by spoiled bankers who took too much risk.
This book lays out the story in a chronological order so that readers can understand the cause-effect of Greenspan's decisions. While the book itself is not that joyful to read (it's always grim to learn about realities), if you really want to know what happened to U.S financial market during past 10 years, this is the book for you. 13 hours is more than enough.