Monday, January 26, 2009

r=r*+ip+drp+lp+mrp

Here is a calculation for interest rates!
r=nominal rate (stated rate)
r*=risk free rate (like the t-bill)
ip=inflation premium
drp=default risk premium
lp=liquidity premium (the risk that it will be hard to liquidate)
mrp=maturity risk premium (the risk that you can't reinvest the money at the same rate as you can now).

r* is easy to calculate, you can peg it to the treasury

Liquidity and MRP are hard to calculate because they to do with the future

Friday, January 23, 2009

Am I posting too many videos now?



I have never seen this before today! I guess this is what we have to look forward to. Unless Obama saves us. Saaaaaaaaave usssss!
Mann, wer haette das gedacht Dass es einmal soweit kommt indeed!

Monday, January 12, 2009

virtual kidnapping

My brother was virtually kidnapped this weekend! Someone called our family claiming to be my bro, it sounded like him but drunk. He said he was arrested and needed 10 grand to get out of Mexican jail! It took us all day to figure out it was a scam. That day sucked.

Sunday, January 4, 2009

another movie too sad to see



I forgot about this movie, Lilya 4-ever. It is about how someone gets trafficked out of the former Soviet Union for prostitution. This is a strange clip, its the part of the movie where this girl's mother leaves her. Its super sad...set to rap! I like it.