Juxtaposing U.S., Chinese Justice Systems According to a Chinese government report released today, “primary leadership responsibility for the bullet-train collision rests with top Railway Ministry officials.” The report noted that 54 government, ministry and industry officials face disciplinary action, including possible criminal charges. —China Blasts High-Speed Rail System; The Wall Street Journal (12/29/2011). Former MF Global CEO Jon Corzine says...Read More
Financial Forecast Sophistry “Economists have predicted 9 out of the last 5 recessions.” “If you lined up all the economists in the world end to end . . . they wouldn’t reach a conclusion.” “If you lined up all the economists in the world end to end . . . it wouldn’t be such a...Read More
First Houses, Now Gold? What’s the best way to make an asset class appreciate? A. Increase its intrinsic value B. Limit supply C. Increase its liquidity D. Stimulate demand Answer: C. (credit also given for “D.”). Buried in a Wall Street Journal article last week (the good stuff always is) was this nugget: Whenever an asset gets...Read More
Lloyd Blankfein’s Very Well-Qualifed Attorney It isn’t clear precisely why [Goldman Sachs CEO Lloyd] Blankfein hired Reid Weingarten, who focuses his practice on white-collar criminal defense. –“Goldman Officers Lawyer Up“; The Wall Street Journal (8/23/2011) It “isn’t clear” why Blankfein hired his own counsel? Really?? After countless allegations of corporate fraud, misrepresentation, self-dealing, front-running, perjury and other illegal —...Read More
Whodunnit? “Fannie Mae and Freddie Mac!” Never have so many owed so much to so few. –Winston Churchill If Winston Churchill had been alive to witness The Crash of ’08 and the events leading up to it, I think he would have offered an updated version of his famous observation about the Royal Air Force pilots who defended...Read More
Can You Say, “Tautology?” How About “Specious Reasoning?” It’s hard to find a victim of [insider trading] because for every buyer of a stock there is a willing seller. –“The Fall of Raj”; The Wall Street Journal (5/12/2010) So that’s the Journal’s argument against insider trading laws? Namely, that no one is harmed because in...Read More
