Visagie still around?

A comment came in today on an old article about the dodgy lending scheme Rudie Visagie was proposing. The reader “trymore” provides some details of a new deal apparently being run by Rudie Visagie. As I stated last time this gentleman’s name came up, I have no personal interest or involvement here at all. My […]

Make A Million competition encourages financial meltdown

[There is an additional post for the 2010 competition on how to not lose money in the make a million competition.] The Make a Million competition is in its fourth year. The aim? Take a personal investment of R10,000 and compete with other “investors” to earn the highest return over a short period of a […]

FSA bans short-selling

The Financial Services Authority (FSA) announced that it will ban short-selling of publicly listed stocks until January 16th, 2009 for the UK market where it is the financial regulator. It will then be reviewed. From The Financial Times: Hector Sants, chief executive of the FSA, said: “While we still regard short-selling as a legitimate investment […]

Mark up a new one for the back-testing books

Back-testing proponents proudly show the empirical base of their approach. No parametric fitting or theoretical assumptions here. “We use the actual history of the markets to assess our risk and define our strategies.” However, the debate that typically comes up is: Back-testing over which period? Do we include the dotcom bubble and burst? What about […]

Rating agencies behind the curve

American International Group (AIG) fell by more than 30% Thursday as concerns about Lehman Brothers and the credit crunch deepened. This is in spite of many experts claiming (yet again) that with the Fannie and Freddie bailout the end of the credit crunch was in sight. Standard and Poor’s response: On Friday, credit-ratings firm Standard […]

Fixing the “too big to fail” problem

Call it what you will, US taxpayers now own Fredie Mac and Fannie Mae. Too big to fail Fannie and Freddie became so large that their failure would reverberate around the US financial sector, and housing market, eventually spilling over into global financial markets and possibly the global economy. Well that’s the theory. This was […]

Don’t use Altman’s Z-score for managing a turnaround

I attended workshop presented by the famous credit analyst and model builder, Professor Edward Altman. He is probably most famous for the invention of the seemingly immortal Z score, which is still in use 40 years after its creation in 1968. During the workshop, Professor Altman recounted a story about how a company managed themselves […]

Pass me that nail would you

A frequent comment about why “property prices will keep going up” is that: They aren’t making land any more Building costs keep going up Our population is growing If these points are true, then this would provide a strong force to push property prices up. It still wouldn’t mean property prices couldn’t decline. Citizens still […]