Monday links: finance is a confidence game

15Dec08

“(R)eally all finance is a confidence game…”  (Market Movers)

Capital markets cannot function healthily without trust. That once crucial factor is now more challenged than at any time in our life.”  (Clusterstock)

Are leveraged ETFs to blame for the pick up in volatility in the last hour of trading?  (WSJ.com)

Who knew an ETF could issue such a large taxable distribution?  (IndexUniverse.com)

A look at the term structure of the VIX.  (VIX and More)

Examining a situation where “long and short options plays can work.”  (Daily Options Report)

The list of losers in the Madoff scandal grows.  (WSJ.com, FT Alphaville, NakedShorts)

These Madoff “losers” may benefit on their 2008 tax returns.  (Market Movers)

Running a large scale Ponzi scheme is not a one-man operation.  (Big Picture also Clusterstock)

Investors are pulling out of weak, as well as strong, hedge funds.  (NYTimes.com)

What the dumb (and smart) money are doing.  (The Technical Take)

“Overall, global macro funds have weathered the storm relatively well this year.”  (market folly)

A variation on the RSI(2) strategy.  (MarketSci Blog)

Portfolio rebalancing can be painful.  (Capital Spectator)

Why the growing spread between plain vanilla Treasuries and TIPS.  (WSJ.com)

“In thinking through my investment thesis for 2009 and beyond, I continue to believe that small and flexible wins.”  (Howard Lindzon)

Earnings underreaction and the investor distraction hypothesis.  (Journal of Finance)

“In short, not only has monetary policy been effective during the current financial crisis, it has been even more potent than during normal times.”   (WSJ.com also Economist’s View)

“(W)hile the U.S. government’s access to cheap money helps its efforts to stimulate the economy, it also may crowd out other borrowers.”  (WSJ.com)

Whitney Tilson on 60 Minutes talking subprime, Alt-A, and Option ARMs.  (1440 Wall Street)

Is a General Motors (GM) bankruptcy inevitable?  (naked capitalism)

Expect a L-shaped economic recovery.  (Baseline Scenario)

The Fed is meeting, and all that matters is the statement.  (Calculated Risk)

Are newspapers doomed?  (NewYorker.com)

Is “reverse syndication” a new and viable model for news gathering?  (BuzzMachine also Silicon Alley Insider)

He who predicts, risks it blowing up in their face.  (NYTimes.com)

The definitive list of year-end 2008 lists.  (Fimoculous.com)

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