zero hedge Sun 2010-01-03 23:46 EST

This Is The Government: Your Legal Right To Redeem Your Money Market Account Has Been Denied

...A key proposal in the overhaul of money market regulation suggests that money market fund managers will have the option to "suspend redemptions to allow for the orderly liquidation of fund assets."...In essence, the entire US capital market is now a hedge fund, where even presumably the safest investment tranche can be locked out from within your control when the ubiquitous "extraordinary circumstances" arise.

denied; government; legal right; Money-market accounts; redeemed; Zero Hedge.

The IRA Analyst Sun 2009-09-13 12:14 EDT

House Testimony: The Trouble With Models Starts With Subjectivity

...we have now many examples where a model or the pretense of a model was used as a vehicle for creating risk and hiding it. More important, however, is the role of financial models for creating opportunities for deliberate acts of securities fraud..the widespread use of [VaR] statistical models for risk management suggest that financial institutions are subject to occasional "Black Swans" in the form of risk events that cannot be anticipated...We don't actually believe there is such a thing as a "Black Swan."...leaders in finance and politics simply made the mistake of, again, believing in what were in fact flawed models...Or worse, our leaders in Washington and on Wall Street decided to be short sighted and not care about the inevitable debacle...We need to simply ensure that all of the financial instruments in our marketplace have an objective basis, including a visible, cash basis market that is visible to all market participants. If investors cannot price a security without reference to subjective models, then the security should be banned from the US markets as a matter of law and regulation. To do otherwise is to adopt deception as the public policy goal of the US when it comes to financial markets regulation.

House testimony; IRA Analyst; models starting; subject; Troubles.

Mon 2008-12-15 00:00 EST

London Banker: Fisher's Debt-Deflation Theory of Great Depressions and a possible revision

``I have been both a central banker and a market regulator. I now find myself questioning whether my early career, largely devoted to liberalising and deregulating banking and financial markets, was misguided.''

Fisher s Debt Deflation Theory; Great Depression; London Banker; possibly revising.

Wed 2008-04-09 00:00 EDT

Sudden Debt: Free Markets vs. Cronyism

"Free markets...without tight regulation...rapidly deteriorate towards crony capitalism"; "excellence in market regulation leads to better and freer markets"

cronyism; free market; Sudden Debt.

Mon 2007-11-19 00:00 EST

naked capitalism: Fed's Gary Stern Makes Lame Arguments Against Increased Credit Market Regulation

Fed's Gary Stern Makes Lame Arguments; Increased Credit Market Regulation; naked capitalism.