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A look inside hedge funds
Hedge funds used to occupy a dark, undisturbed corner of the financial world, but over the last year they've been thrown under the spotlight. Still, many people don't know exactly what hedge funds are, or what hedging actually means. Senior Editor Paddy Hirsch explains.
Hostile takeovers
We all know what a takeover is. That's when one company agrees to be bought by another. But what happens when companies don't agree and the takeover goes hostile? Senior Editor Paddy Hirsch explains.
Derivatives
Credit default swaps? They're complicated -- and scary! The receipt you get when you pre-order your Thanksgiving turkey? Not so much. But they have a lot in common: They're both derivatives. Senior Editor Paddy Hirsch explains.
Bonds, notes and bills
So much government debt! But what's the difference between the Treasury's bills, notes and bonds? Senior Editor Paddy Hirsch explains.
Inflation
Most economists agree that inflation of about 2% or 3% annually is a natural function of a growing economy. But people are worried government stimulus measures could spark much higher inflation. Senior Editor Paddy Hirsch explains
High-frequency trading
High-frequency trading is creating a ruckus on Wall Street. Marketplace Senior Editor Paddy Hirsch explains what high-frequency trading is and why some people are up in arms about it.
Factoring
Many small businesses get the cash they need to operate and expand from so-called factors. One of the biggest factors in the business is CIT, and with CIT on the ropes, small businesses are worried. Senior Editor Paddy Hirsch explains what factoring is, and how it works.
Financial alchemy
Many asset-backed securities have been downgraded from AAA recently. But at least one issuer has miraculously repackaged a downgraded deal to make some of its bonds worth a AAA rating again. Senior Editor Paddy Hirsch explains.
Where's the toxic waste?
Banks are paying back TARP money and claiming they're the picture of health. So what happened to all those toxic assets that were clogging their arteries a few months back? Senior Editor Paddy Hirsch explains.
Dark pools
Dark pools are exchanges where people trade stocks anonymously. Senior Editor Paddy Hirsch explains how they work, and why the SEC is considering regulating them.
The 'repo' market
Senior Editor Paddy Hirsch explains why the repurchase (or repo) market is a vital part of the financial system, and why the government is considering changes to it.
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Comments
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From Seattle, WA, 03/14/2009
Paddy-Brilliant ! Your concise delivery, extreme wit and wonderful balance of teaching without talking down to the audience or allowing for any show of arrogance is refreshing. It gives me hope for the future of media and the Internet. Just when I thought Marketplace was impressive......Way to go Folks !!
02/09/2009
paddy hirsch why dont u try ur hand at teaching wall street ppl...... they really need some of it.
From San Diego, CA, 01/11/2009
Very good explanation. Couple of questions I have always wondered about..(a) why would banks provide such a high leverage to Hedge Funds? What guarantees they have now that we know about some astronomical collapses of Hedge Funds in recent past (LTCM)??
(b) Why all the secrecy in what the hedge funds are buying and selling? If we require Mutual Funds to make all the disclosures, why not hedge funds?
I am sure geniuses at SEC/Congress are asking these questions in hind sight, however why not start now so that we can start to clean up this magical mess. As you have explained so superbly, the amalgamation of rich (aka accredited) people's money plus leverage creates vast concentrations of funds that can sink few select positions that they are holding in a hurry.
From Princeton, NJ, 01/01/2009
Great, informative stuff. Double plus that Paddy Hirsch is a fox. Thanks for the brain/eye candy! ;)
From Toronto, ON, 12/27/2008
Money is created "out of thin air" by the Federal Reserve. When Paddy talks about the FED buying the Treasury, that is called monetizing the debt. Potentially very inflationary.
From Edina, MN, 12/24/2008
Paddy
Would you be kind enough to explain in detail, what do we use for money? How is money created? Who can create money? How do money get into circulation so that I can use it.
From Minneapolis, MN, 12/22/2008
I work in the financial industry providing explanations to financial advisors like the ones found here. I just want to say how much I appreciate the concise and straight-forward explanations that even help some one like me understand the core concepts better and how to explain them.
From Poughkeepsie, NY, 12/22/2008
I am studying financial translation and I have to say I am a huge fan of your videos. I think they are fantastically helpful for understanding such complex concepts. Keep up the great work!
From Chicao, IL, 12/22/2008
Thank you so much for the videos. I have learned so much just by watching them. Entertaining and informative! Keep up the good work!
From Tuscaloosa, AL, 12/18/2008
Very interesting and informative. Bravo!
12/18/2008
Cap markets are unstable. In the past there was no way to make them stable. But today we have computer power that can be used to make them stable. By using the greater computer power of today we can have a much higher turn over of cap in the cap market. This higher turnover will make the market harder to fix or control and the market will no longer have the unstable run ups or declines. Who can change or control the market when say 20% of the capital is trading each day. So now that we have the compute power to provide for all these transactions that will smooth out the market how to we force people to turn over at a rate of 20% a day? Easy, put a cap gains tax of 0% (zero) on all gains of 7 days or less and put a cap gains tax of 90% of all gains of 7 days or more. The likes of Yahoo Micosoft and/or Sun Micro Systems will give us the systems that will provide automated software agents to support turning over one's investments every 7 days (based on the specs you give the agent). A system like this will make the financial markets work as smoothly as the local fruit market.
From Newport News, VA, 12/18/2008
I love this show. I have learned so much about market just by watching your show. In fact, I am thinking changing my major to health management. What do you think about that? What is your opinion about students majoring in some type of business with the way the market is today? Do you think there is a future for business student? Keep up with your educational messages and thank you for your attention to my concerns.
From Los Angeles, CA, 12/17/2008
Wow, these are fantastic videos. I found them completely by accident.
From Charlotte, NC, 12/15/2008
I like your video presentations. Is it possible for you to take a session on 130/30 Strategy used in Hedging?
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