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Two weeks ago three iTulipers where quoted in the New York Times story Crux of the Crunch about the true causes of the mortgage crisis: "Today’s ARMs were 'designed to fail, so you have to refinance,' Ms. Wachter said. 'It shouldn’t be surprising that values go up and down in this kind of situation. And when you most need to refinance you can’t — the crux of the crunch.'”
Today iTulipers help tackle the topic of foreign exchange.
While Alluring, Foreign Currencies Can Be Elusive
April 5, 2008 (JANE BIRNBAUM - New York Times)
While experts have different opinions about investing in foreign currencies, they all agree that such investments are not for the faint of heart.
Information about foreign currency — and ways to purchase it online through certificates of deposit and exchange-traded funds and notes — has never been more available. And that can raise expectations, according to Paul Karger, a managing partner of Twin Focus Capital Partners, a money management firm in Boston.
Earlier this year, Mr. Karger said, he received an e-mail message from a high-net-worth client wanting to know why his cash was not in three-month Icelandic krona CDs paying over 11 percent interest.
“I wrote back that it looked tempting, but it’s more than a yield story,” Mr. Karger recalled. “People could start dumping the krona, and when he converted his CD back into dollars, he could wind up losing money.”
AntiSpin: Is that Paul Karger of iTulip Sponsor Twin Focus Capital Partners? Yes it is, and maybe iTulip readers have heard of this guy?April 5, 2008 (JANE BIRNBAUM - New York Times)
While experts have different opinions about investing in foreign currencies, they all agree that such investments are not for the faint of heart.
Information about foreign currency — and ways to purchase it online through certificates of deposit and exchange-traded funds and notes — has never been more available. And that can raise expectations, according to Paul Karger, a managing partner of Twin Focus Capital Partners, a money management firm in Boston.
Earlier this year, Mr. Karger said, he received an e-mail message from a high-net-worth client wanting to know why his cash was not in three-month Icelandic krona CDs paying over 11 percent interest.
“I wrote back that it looked tempting, but it’s more than a yield story,” Mr. Karger recalled. “People could start dumping the krona, and when he converted his CD back into dollars, he could wind up losing money.”
In Fort Worth, Dr. Jim Nickerson has managed his own money since retiring from dentistry and oral surgery in 1986. After Rydex introduced its yen exchange traded fund last year, Dr. Nickerson started buying shares that accounted for about 10 percent of his total invested assets of about $1 million.
The shares began rising steadily in July. As the dollar bottomed on March 17, they peaked.
The next day, they declined sharply. “I saw a significant reversal of direction, and I didn’t want to give up those profits,” said Dr. Nickerson, who during market hours had been checking the shares’ real-time quotes every 15 minutes since buying them. “I pulled the trigger and took an $18,750 profit.” more...
The shares began rising steadily in July. As the dollar bottomed on March 17, they peaked.
The next day, they declined sharply. “I saw a significant reversal of direction, and I didn’t want to give up those profits,” said Dr. Nickerson, who during market hours had been checking the shares’ real-time quotes every 15 minutes since buying them. “I pulled the trigger and took an $18,750 profit.” more...
In other news, Eric Janszen was interviewed by Plenty Magazine's Victoria Schlesinger.
Can green save the US economy?
April 5, 2008 (Victoria Schlesinger - Plenty Magazine)
Eco industries are going gang busters, but experts disagree on whether they will rescue us from economic doldrums
One of the most discussed positions of late has come from Silicon Valley angel investor and author Eric Janszen. He argued in a February cover story for Harper’s Magazine that to save itself from economic free fall and prop up the fictitious value created by the housing market in the early 00s, the US will turn to the next big idea. That, according to Janszen, will be alternative energy and infrastructure and it could produce an “estimate of $20 trillion in speculative wealth.”
Whether or not you agree with Janszen’s critical ideas about economic bubbles (also known as asset price inflations—think the Internet and real estate booms), his rationale implies that the green economy will not only survive the current down turn but benefit from it with a catapult-like boost. But during an interview with Plenty, Janszen seemed to retreat some from his stance in the story. “My hypothesis about alternative energy market is that it may never develop into an actual asset price inflation. It could develop in a whole range of ways,” he says. “[It could be] a big asset inflation in the future or it could merely be an oasis in an otherwise moribund economy. Either way it’s going to be a growth area over the next five years or so.” more...
We call it Boom in the Doom. Others are catching on, but of course you heard it here first.April 5, 2008 (Victoria Schlesinger - Plenty Magazine)
Eco industries are going gang busters, but experts disagree on whether they will rescue us from economic doldrums
One of the most discussed positions of late has come from Silicon Valley angel investor and author Eric Janszen. He argued in a February cover story for Harper’s Magazine that to save itself from economic free fall and prop up the fictitious value created by the housing market in the early 00s, the US will turn to the next big idea. That, according to Janszen, will be alternative energy and infrastructure and it could produce an “estimate of $20 trillion in speculative wealth.”
Whether or not you agree with Janszen’s critical ideas about economic bubbles (also known as asset price inflations—think the Internet and real estate booms), his rationale implies that the green economy will not only survive the current down turn but benefit from it with a catapult-like boost. But during an interview with Plenty, Janszen seemed to retreat some from his stance in the story. “My hypothesis about alternative energy market is that it may never develop into an actual asset price inflation. It could develop in a whole range of ways,” he says. “[It could be] a big asset inflation in the future or it could merely be an oasis in an otherwise moribund economy. Either way it’s going to be a growth area over the next five years or so.” more...
If you are planning to be in New York City next week, stop by the Reuters AdvicePoint™ Forum NY with its "ten timely, thought-provoking panels of financial advisers, analysts, management consultants and other financial services experts sharing their views on the latest wealth management strategies."
Make a special effort to see the panel at 3:30PM Wed April 9 "Stepping into the Financial Blogosphere."
Moderator: Jamie Green, Investment Advisor Magazine
Panel:
Henry Blodget, Silicon Alley Insider
Eric Janszen, iTulip.com
Barry Ritholtz, The Big Picture
Eric, Henry, and Barry will deliver an entertaining hour of mainstream media bashing, Fed roasting, and Wall Street critique. Click here for details. Eric Janszen, iTulip.com
Barry Ritholtz, The Big Picture
"Stepping into the Financial Blogosphere" panelist, Eric Janszen shares his insights in a video interview.
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