The rambling thoughts of a Modern Orthodox Chassid (whatever that means). Contact me at emansouth @

Friday, September 26, 2008

Yet More From The Crisis

1. While Congress decides what they are going to do about the bail out plan, the market continues to tank. WAMU is farfallon, and there is immense pressure on another couple of major financial institutions. I am not particularly happy about all aspects of the plan either, but, guys and gals, it's time to act.

2. The only thing dopier than the SEC's across the board suspension of the short selling rule (which has basically shut down the convertible bond market, among other things) is the ridiculous proposeal by New York State insurance regulators (who can't even spell CDS) to regulate credit default swaps as insurance contracts. Talk about unintended consequences. If this plan goes through, the entire CDS market will simply move to London. Duh.

3. Hot dogs for lunch are looking good.

4. With all the turmoil going on, I heard some wonderful news this morning. One of my good friends became engaged. Reminded me what's really important. Baruch Hashem.



  • At 12:36 PM, Blogger Ezzie said…

    I think any stupid regulations that knock out certain types of trades will just move those trades to other exchanges.

  • At 1:27 PM, Blogger Gil Student said…

    1. It takes more than a week to totally revamp the foundations of the economy. Especially when you've got major economists questioning the current plan. You've got to expect ups and downs in this news over this process of change and you shouldn't buy and sell stock based on it.

    2. The NYSID was forced to make that move because bond insurers have been avoiding regulation by writing insurance in the form of CDS swaps. That's part of what tanked the entire industry.

    3. Try going the knish route every once in a while. Variety, spice, life.

    4. Mazel tov!

  • At 1:45 PM, Blogger MoChassid said…


    It's one thing to regulate the insurance companies; it's another to turn all CDS into an insurance contract subject to heir regulation with the stroke of a pen and no othought to the consequences.

    I am not worried about the stock market at all. I was referring to the credit markets. They are being hammered.

    I do go the soup and knish route (and I didn't even have time to walk over to Mendys today any way).

  • At 3:19 PM, Anonymous Anonymous said…

    Tell us what you don't like about the bailout plan(unless its going to endanger your job or something). And im actually happy that certain regulations knock certain types of commerce out of our market. large parts of the gaming industry for instance(i mean gambling not playing halo). Totally happy that New York for the most part is not the place where those trades and comissions take place. Sorry about your loss of hot dogs. But big mazel tov on your chaveir. Heard the rebbe speak twice this part of my week by far.Great shabbas and kesivah u chasimah tovah.Brad

  • At 3:51 PM, Blogger Joe Schick said…

    Two hot dogs does not impress me.

    When you write that you're going to Mendy's for two burgers, I'll know the economy has collapsed like the 2007 Mets.


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