Archive for October, 2008

I went to an ATM today, and it asked to borrow a twenty till next week.

October 17th, 2008 No comments

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Real Deal on ‘Joe the Plumber’

October 16th, 2008 No comments

Did you read the artical in the NYTimes, He insnt a licensed plumber, never was an apprentice. ere is the link.

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T. Boone Pickens

October 16th, 2008 No comments

If you have never head him speak he gave a good talk at the National Press club. I was a little unsure that he would have anything good to say but I was wrong. To bad we don’t have more people with good ideas and money to sell and invest in them. Why do so many look at environmental issues as an unnecessary cost rather than a business opportunity. Click on the link and the audio will play.

Oil executive speaks at National Press Club

Posted 09/26/2008 – BP Capital Management Chairman T. Boone Pickens discusses oil and energy at a National Press Club luncheon.

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Credit Default Swaps, there is still a market.

October 16th, 2008 No comments
The chart below is the current rate for Credit Default Swaps (Credit Derivative). It is interesting to me that these are still being traded more accurately there is still bond insurance being sold and there are some buyers. Keep in mind there is still no exchange or clearing house for these. Here is how to read this, For the B-rated bond you must pay 11% above the fed T to get insurance on the bond for a year. Of course if your bond pays 15% this is good and the Fed rate is almost 0 now. The problem is that there is maybe more risk that the company selling the insurance doesn’t pay than it is that the bond defaults.

Credit Derivative Indexes

Thursday, October 16, 2008
Credit derivatives are designed to allow sellers to take on, or buyers to reduce, the default risk on a bond.
CDX Index Spread
(basis pts)
Upfront Coupon
Roll date High Low Average
Investment grade, N. America 197.75 $97.89 1.50 Sept. 25 215.43 128.50 173.74
  High volatility 502.50 95.43 3.85 Sept. 25 506.67 453.08 474.69
High yield, N. America 120.06 78.85 5.00 Oct. 2 85.45 78.85 82.17
  B-rated 1136.41 80.35 5.00 Oct. 2 88.46 80.35 84.90
  BB-rated 708.04 92.48 5.00 Oct. 2 98.08 92.48 95.49
Emerging-markets 683.95 88.15 3.35 Sept. 25 97.37 88.15 92.63
Emerging markets diversified* 527.09 89.05 2.80 Sept. 25 96.60 87.75 91.84
participants together with Markit Group Limited select companies for
each index. For additional information and a list of participants and
components, please see
This chart can be found at: LINK

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Interesting sentence

October 16th, 2008 No comments

The Bush administration, having entered office as social conservatives, leaves
office as conservative socialists, proprietors of the most sudden large
expansion of the state’s role in the US economy since mobilisation for the
second world war.

Brad DeLong here.

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