The Story of Peloton PartnersA London based hedge fund, Peloton Partners was hailed for its success in 2007 when its fund investing in subprime securities hauled in a spectacular 87% return. Two months later in 2008 it blew up. All $2 billion in its fund was gone in less than a month.

The “what” [...]

Chairman Bernanke, like most students of economics, deserves a constructive evaluation of his performance in his first major crisis.I’m giving him an “F” for opening the Discount Window for Bear Stearns and JP Morgan. The Fed’s argument: In a perfect world, let them fail. In this world it might trigger a credit collapse. What’s [...]

A Modest Proposal for a SolutionThe news continues to be bad. Economists say home prices need to decline 15% to 25% before we’ve hit bottom. A recent study said that banks need to write down assets further, leading to a potential $2 trillion asset write down (read: less ability to lend).[1] We also need [...]