Enterprising Investor Forum

WHO: Pandemic Flu Alert Level Raised Thursday, April 30, 2009

Swine Flu Excuse Monday, April 27, 2009

As everyone seems to be desperatly trying to find and contain pockets of swine flu around the world and prevent a pandemic / subsequent public panic, markets signal a lower open and a lot of nervousness…

Whilst market commentators are busy discussing what impact this will have on individual travel or commodity stocks…. the question we would like to raise is : “Are the markets really reacting to this specific news or would any excuse be good enough to highlight the fact that the recent bear market rally has run out of gas?”

We will soon find out..

Trump: Banks not lending… Friday, April 24, 2009

Despite politicians trying to get us to buy the fact that banks are lending, most market participants are confirming that this is simply not true!

Not only are they not lending to retail customers or corporation but they are still not lending to each other at anything like a normal rate of interest …

As Mr. Trump so kindly put it: “The banks are not lending money. There’s no money out there, no matter how strong you are, no matter how good your deal is, if you go to a bank today they virtually laugh at you if you’re asking for money.”

Sad but true…

Nassim Taleb: words of wisdom Wednesday, April 8, 2009

Once again, Taleb tells it as it is.

He argues that the banks are essentially like utility companies, as they perform essential functions like the safeguarding and availability of your capital and this implies that they simply cannot be entrusted with risk taking.

Risk taking should be limited to special vehicles (i.e. hedge funds) that do not endanger the system and do not need/ask to be bailed out… essential creating a two tier system:

You can see the whole video – Nassim Taleb and Daniel Kahneman: Reflection on a Crisis – here.

We strongly recommend the whole video as is it really fascinating. Furthermore, you get the added benefit of Daniel Kahneman, which is a big treat!

Enjoy!

FT Macromaps Tuesday, March 31, 2009

If you still haven’t seen this resource on the FT site, we recommend you check it out by clicking: here.

It is part of the Markets Data section and you can also get similar graphical displays for currencies.

The interesting thing is that you are just a couple of clicks away from a really good and visual picture of the global situation and performance

Enjoy!

DeSantis: from inside A.I.G. Wednesday, March 25, 2009

Some  of you might have heard about this and it is well worth the read – at least you can get the other side of the story.

Jake DeSantis, an executive V.P. of A.I.G.’s financial products unit, tenders his resignation letter to Mr. . Liddy.

“… But you also are aware that most of the employees of your financial products unit had nothing to do with the large losses. And I am disappointed and frustrated over your lack of support for us. I and many others in the unit feel betrayed that you failed to stand up for us in the face of untrue and unfair accusations from certain members of Congress last Wednesday and from the press over our retention payments, and that you didn’t defend us against the baseless and reckless comments made by the attorneys general of New York and Connecticut…”

Link to letter on the NYT page: here.

Obama: Tonight Show – part 3 Friday, March 20, 2009

Here is the 3rd and last part:

Obama: Tonight Show – part 2 Friday, March 20, 2009

Here is the second part:

Enjoy!

Barack Obama on The Tonight Show Friday, March 20, 2009

Here’s is the first part:

It’s  really excellent that he actually went on the show and also good to see that the President has not lost his sense of humor!

Best Advice to AIG Thursday, March 19, 2009

It actually looks like someone in Congress is talking some sense. Congressman Ackerman hit the nail on the head: “It’s just not worth it…”:

Having said this, we just wanted to point out that it’s a real shame that people are taking their frustrations out on Mr. Liddy… he is actually trying to do his best for the American people, he didn’t ask for the job and is just getting paid 1 dollar per year for his service to the country.

If we don’t show some respect and gratitude, chances are that is is going to be very difficult for the government to convince other experienced executives to lend a ‘pro-bono’ helping hand!