Market Commentary


Build America Bonds – A Great Start

Author: Peter Demirali, Post Date: April 24, 2009

Peter Demirali is a portfolio manager and heads Cumberland’s taxable fixed income area and is a long time veteran of taxable fixed income markets.  He is a member of Cumberland Advisor’s Management Committee.  His bio may be found at  Comments on this article may be directed to When Congress passed the stimulus bill […]

Bank Lending

Author: Bob Eisenbeis, Post Date: April 22, 2009

In an article this Monday the WSJ reported that lending by banks that had received TARP funds had continued to decline since the inception of the program and that this “paints [a] starker picture than official government snapshots.”  The article focused almost exclusively on the recently released loan origination data by Treasury on lending by […]

Big Changes in Muniland

Author: David Kotok, Post Date: April 19, 2009

Big changes are coming in Muniland.  This commentary is the first in a series about them. It used to be that all investors had to think about when they considered municipal bonds was whether they were AAA-insured and whether or not they were traditional tax-free or subject to the Alternative Minimum Tax (AMT).  Those good […]

The Goldman Exit

Author: Bob Eisenbeis, Post Date: April 16, 2009

Goldman Sachs’ ability to raise capital on Tuesday and its announced desire to pay back the funds obtained from the TARP program is forcing the administration and banking agencies to rethink how they plan to deal with the results of the stress tests they have been conducting.  Initially, institutions were instructed not to disclose the […]

Regulatory Malfeasance and the Financial System Collapse

Author: Joseph Mason, Post Date: April 14, 2009

Kotok comment: we are pleased to forward this guest commentary by Professor Joe Mason.  In it he outlines ways in which the securitization process went awry and led to the financial crisis we have been experiencing.  Joe notes some of the warnings.  He also furnishes a link to his recent paper on mortgage servicing which […]

Does the Stock Market Rally Have Legs?

Author: David Kotok, Post Date: April 11, 2009

Is this rally real?  Does it have legs?  Questions like these are now raised daily by investors and by TV anchors on the financial shows.  The CNBC Power Lunch fearsome foursome panel called me a “dodger” when I wouldn’t take their bait last week.  Our response was then and still remains: the answer is a […]

Federal Reserve Independence

Author: Bob Eisenbeis, Post Date: April 6, 2009

Last week the US Senate passed a nonbinding resolution urging that a review be conducted of the Federal Reserve Bank structure and costs and that the Fed disclose recipients of discount-window and other loans, the amount of assistance provided, and how the funds are being used.  These populist actions against the Federal Reserve have a […]

Japan and the G20

Author: Bill Witherell, Post Date: April 2, 2009

The heads of state of the G20 countries are gathered today, April 2, in London for their meeting. Last week when I was in Paris, I was asked in a CNBC Europe interview if the upcoming meeting should be called a G2 meeting, with the US and China being the only important participants. Readers of […]

Heads or Tails? Parts 1 & 2 – Combined and Revised

Author: David Kotok, Post Date: March 31, 2009

Dear Reader: Please give me 8 minutes to explain the $1.1 trillion federal government Public-Private Investment Program (PPIP). Start here with this simple example. It’s a coin toss. Heads you win $100; tails you get nothing. How much would you pay to play? You can play as many times as you wish. Answer: not more […]

Systemic Risk Authority

Author: Bob Eisenbeis, Post Date: March 26, 2009

Momentum appears to be gathering to establish a systemic risk authority and grant to it the powers similar to those available to banking regulators to resolve troubled institutions that may pose systemic risks to the financial system and to the economy.  Chairman Bernanke and Secretary Geithner, as well as other banking regulators, have asserted that […]

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