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This is an absurd discussion, where nobody knows what actually transpired, who offended who, who was acting belligerently, etc, but everyone still seems to have an opinion. It is destined to be an endless back 'n forth about various moral issues that have no right or wrong answer. The only...

1.1205, according to one of the models I have seen...

I don't know either, although, clearly, there are a few technical issues that need to be addressed, such as proper collateralization, etc... Just because there are idiots that misuse a product doesn't mean that the product itself is to blame and must be outlawed. In my view, all the CDS...

I would actually agree with that... If you're in the insurance biz, like Buffett, have enough cash to handle the mark-to-mkt fluctuations, which he obviously does, and are going to run the puts to expiry, what does vol, either implied or delivered, matter? In fact, I think what he has done...

Great post, xenix... I don't personally have any clue what the ratio is. On the other hand, I don't see a problem with the crazy ones, either. After all, I am here for a mix of a) entertainment value, which the crazy ones offer in spades; b) an occasional worthwhile discussion with someone...

I hope they don't sue Prof. Lieberherr and Northeastern for allowing this info to be public :)

Correct me if I am wrong, but I don't understand this logic. I am not a corp CDS expert, so I can only extrapolate from sov CDS (maybe sjfan can weigh in here). If I am long protection and wish to get paid, why is it that I would seek the company to fail and prevent an orderly and well-done...

This is one funny statement here, comrade...

Here's the formula: http://www.asset-analysis.com/bonds/bonytm.html Just put the formula into Excel (hint: it already has functions for this) and you will be able to examine the relationship between yields and prices to your heart's content.

Far from it... I actually like and respect economists a lot more than other people you would encounter here. There's a thread here about economists and how they occasionally hold wrong views. I posted a comment there that sorta summarizes my views on the subject. As I mentioned, I don't...

Absolutely agree, which is why I like to read short pieces that talk about data, but also provide insight and ideas... Let me give you an example of something I like: http://econompicdata.blogspot.com/2009/07/unemployment-across-united-states.html As to what I do, I am not sure how it's...

You know that the first VW Beetle was designed by Porsche, based on a sketch by Hitler, who I think also came up with the name Volkswagen, if I am not mistaken?

I don't understand what all the endless back and forth is about. It's a simple choice of what you believe is a lesser of two evils: 1) Govt-administered universal healthcare. Potentially grossly inefficient and may introduce 'moral hazard' issues. On the other hand, if somehow you end up in...

You can take a look here for the various official measures of unemployment (U1 to U6): http://www.bls.gov/news.release/empsit.t12.htm

Well, just think about the definitions above... If a) your unemployment benefits have run out; b) you don't satisfy one of the five criteria, e.g. you have stopped looking for work; you're officially not accounted for in either category. Make sense?

wolfab, many of the things you say are true, but try to look at the flip side of these things... Specifically, you're right about auditors and accountants and you might be right about trust. However, the thing about Madoff was that not only was he audited, but he was perceived as trustworthy...

Continuing Jobless Claims: number of individuals who are unemployed and are currently receiving unemployment benefits. Initial Jobless Claims: number of individuals who have filed for unemployment benefits for the first time. To file a claim you must be eligible and satisfy five criteria: 1)...

I am in agreement with this... It's not like there aren't examples that work better. Fundamentally, I think the problem is that we don't yet know how to make public-private partnerships work, so any such hybrid system is doomed to failure. Therefore, there are only two options. Either you...

wolfab, just out of curiosity, you're running this yourself, right? Have you considered going to work in the biz, say for an HF, IB, prop shop or some other org of this sort? Apart from potentially gaining valuable experience (which also looks good on paper), you might discover investors...

Try here: http://www2.standardandpoors.com/portal/site/sp/en/us/page.topic/ratings_sov/2,1,8,0,0,0,0,0,0,0,3,0,0,0,0,0.html Good luck to you with your investments, but be careful. If you're giving money to banks, sovereign risk shouldn't be your main concern. At the very least, the very...