A Systematic Trader's Journal

Spent some time over the weekend to read on Mr Irving Fisher's landmark paper on The Debt-Deflation Theory of Great Depressions. Hope you guys will like this. Click here to read the article. Have a great weekend.

Seems like the US stock markets do not really like Fed Chairman, Ben Bernanke appearances most of the time.  If you missed yesterday night's speech, here you go: Part 1    Part 2 For a script on the speech, you can also access it from here. Good trades.

Here are some details of the severe repercussions should AIG fall, take this to reference on the impact of the LEH collapse: Sept 17 (Reuters) - (The following statement was released by the ratings agency) Sept 17 - Moody's Investors Service announced today that is has placed its ratings of certain credit derivative transactions listed below (the "Transactions") that have exposure to Lehman Brothers Holdings Inc. ("LBHI") and certain UK Lehman companies, including Lehman Brothers International (Europe) ("LB-UK" and collectively with LBHI, the "LBHI Entities"), on watch for possible downgrade. Additionally, certain other Transactions were downgraded and left under review for further possible downgrade. Moody's explained that its rating action is based upon LBHI seeking protection under Chapter 11 of the U.S. Bankruptcy Code and LB-UK being placed into administration, a procedure governed by the Insolvency Act of 1986, on September 15, 2008...

Seems like we can avoid another scene like that in AIA Singapore again.  No rate cut was made. The Federal Reserve is readying a loan of $85B to AIG, in exchange for an 80% stake in the insurer. Barclays is buying some of Lehman's assets, where the US bankruptcy judge approves "automatic stay" status for JP Morgan to continue providing trade-clearing advances to Lehman's broker-dealer unit. WAMU is also up 16% due to talks of fresh interest from a large institution.  Thus, has all these events salvaged the turbulence in Asia, and create a positive spur of sentiment for the international markets? Let's take a quick snapshot in early Asia and US closing markets in the morning. All Ordinaries  Australia 4,843.4 8:28AM SGT  43.600 (0.91%) Nikkei 225 Japan 11,830.34 8:28AM SGT     220.62 (1.90%) KOSPI  Korea 1,425.59 8:48 AM SGT   37.84 (2.73%) S&P 500 US 1,213.59 20.89 (1.75%) DJIA 11,059.02  141.51 (1.30%) Nasdaq 100 1,724.08   18.62...