As the Fed and the Treasury once again staff the shovel brigade behind one of Wall Street's periodic asset-bubble parades - lest the foul economic odor in its wake seep too deeply into the rest of the economy - my ...(back to the article)
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"Why not sell bets on the weather as well?" Well, professor, they already do (I guess you were ironic). Weather derivatives (CDD and HDD contracts and others) have existed for few years now. Remember, though, that initially all those products (CDS, Weather Derivatives, even Vanilla calls and puts) were put into place to offer insurance against adverse events to players in the financial markets and companies exposed to those risks. What is the solution then? Stop, speculators from entering those markets? This would be logistically difficult, as well as reduce the liquidity available for those contracts. Nevertheless, I agree that banks should enforce strong risk controls to avoid entering risky deals. And in order to do that, they will need more qualified personnel to evaluate those risks, more research to better quantify them, and a strong will to rein in their traders who exceed risk limits.
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Who is this foushee guy? I see he's been posting his racist drivel on other college newspaper websites...
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Do not feed the Troll. Btw, nice article Professor.
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If a wealthy alumni donates 10 million dollars to the Princeton endowment for undergraduate scholarship and the scholarship fund was not restricted to being either need-based or merit-based, does that mean that all undergraduate students should receive a discount on tuition from the payout of this endowment? or does it mean that the university has the discretion to illegally assign the payout earnings from this endowment fund to be either general, merit-based, or need-based scholarship, as they sees fit? Likewise, can the donor specify that the payout of the earnings of their endowment fund to be 50 percent of its pool-funds earnings for the year? Does the earning of this particular endowment fund that is not payed out each year go back into this same scholarship fund or does these earning go into the unrestricted pooled-fund endowment fund that pays faculty salaries each year?
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A recession is defined as two successive quarters of negative economic growth in the Gross National Product. I am sure that a professor of political economics knows the recession equation, [+--], all too well, but the moral and patriotic lessons that you are preaching about the war in Iraq is also based upon lies, misinformation, and political propaganda. If you think that our American oil well security team in Iraq is doing a good job protecting American BIG OIL interests there and doesn't need to come home for a while, that is your public opinion, but don't try to convince everyone in the townie bars and taverns that it is your intelligent opinion! What Washington, D.C., think-tank gave the Hebrew National Bank professor at Princeton the crib-sheet fact that the last two reported American economic quarters both had negative growth—adjusted for inflation? {Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- increased at an annual rate of 0.6 percent in the fourth quarter of 2007, according to final estimates released by the Bureau of Economic Analysis. In the third quarter, real GDP increased 4.9 percent.}--BEA [What is taking George W Bush and the Five Jews on the Federal Reserve Board so long to release the GNP figures for the 1st Quarter of 2008?] þÿ
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