Monday, October 20, 2008

Reads of the day

My sincere thanks to Zubin Jelveh for going over two recent papers that look at whether subprime lending standards had loosened in the last few years and find seemingly opposite results. In a little over a day after I had lamented at not having the time to read the papers, I find his excellent analysis- I have always found blogging very useful (otherwise, why have a blog), but I am impressed big time now...

I was finding it ironic for some time that USD was moving in the opposite direction of a popular exchange rate model. Rebecca Wilder starts with the same observation and concludes by introducing a new variable to include in exchange rate models.

Hedging against recession risk at prediction markets- no knowledge of finance required...

Why it pays to look inside indices: Sometimes, you get a gain mostly on one or two components of the index, as was the case in the latest US leading indicators index.

Nice, Krugmanesque model from Mark Tahoma on the incentives of households to default on their mortgage payments intentionally.

James Hamilton summarizes the latest US industrial production and Michigan consumer sentiment outturns.

Efficient? Markets Hypothesis

The US government's financial commitment to end the crisis- in a nicely laid-out graphic

Shackleton and the credit crisis (the same guy has also similar explanations of CDOs and CDSs, which can be reached from the same link)

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