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Libor: How traders affect final calculated and published rate

Circumventing safeguards in place to protect published Libor rates from manipulation: Q: I’m still missing something here. I know these markets pretty well. The procedure required by BBA, in place since the 1980s, involves removing the highest and lowest quotes and averaging the rest. So (a) numerous banks contribute to the average, and (b) any outliers are removed before calculating that average. I appreciate the large notionals involved. But how…


What a terrible long-term investment real estate has become…

“There is an iron law of house prices. The more house prices relative to income and rents, the more they will subsequently fall”  / quote “Boomerang”, written by Michael Lewis. “Real estate bubbles never end with soft landings. A bubble is inflated by nothing firmer than people’s expectations. The moment people cease to believe that house prices will rise forever, they will notice what a terrible long -term investment real…


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Proof Google Has In Fact Dropped “Don’t be evil” In Practice?

Robert W. Johnson who founded Johnson & Johnson in 1886 set the following important credo (in 1943), that Google chairman Eric Schmidt has very recently spat at: “Our fourth responsibility is to the communities in which we live. We must be a good citizen – support good works and charity, and bear our fair share of taxes. We must maintain in good order the property we are privileged to use.[…]”…


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Why Novartis Equity Performance Has Been Lagging

I started reading a book called “Built To Last” I picked up on a recent trip to NYC. On page 47 the following paragraph struck me: Quote from George Merck II: “[We] are workers in industry who are genuinely inspired by the ideals of advancement of medical science, and of service to humanity”. The  CEO of Merck, P Roy Vagelos sang the same idealistic tune: “Above all, let’s remember that…


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Which Industries In Switzerland Are Doing Well

This graph by the EZV (Eidg. Zollverwaltung) published this morning shows the yoy change of different industries in percentage terms for the month of October 2012. The figures are skewed to the positive side due to two extra working days.




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Problems Currently Facing Fund Managers

Jan Straatman, Global CIO of Lombard Odier, made some interesting comments regarding the “problems” currently faced by fund managers, at the CFA Institute Fifth Annual European Investment Conference held in Prague, 18-19 October 2012 Although there have been a proliferation of new asset classes in the last two decades, the globalisation of the capital markets through company expansion and orchestrated multi-national monetary policy has reduced the diversification impact across asset…