Alan Greenspan Responds To Critics
On March 17, Alan Greenspan wrote an article titled “We will never have a perfect model of risk“, which attracted considerable criticism from readers at FT.com.
Mr. Greenspan replied to those criticisms as follows:
I am puzzled why the remarkably similar housing bubbles that emerged in more than two dozen countries between 2001 and 2006 are not seen to have a common cause. The dramatic fall in real long term interest rates statistically explains, and is the most likely major cause of, real estate capitalization rates that declined and converged across the globe. By 2006, long term interest rates for all developed and major developing economies declined to single digits, I believe for the first time ever. […]
1st Quarter 2008
Rutherford Investment Management, LLC
Newsletter: 1st Quarter 2008
Market Continues Its Losing Ways, Or Does It?
The first quarter of 2008 marked one of the worst quarters in history. The S&P extended its losing streak to five consecutive months, the longest such streak since 1990. The financial system was in turmoil. More large write offs at financial institutions are expected. Housing appears still in a crisis. Credit markets have been dysfunctional… Download Newsletter
4th Quarter 2007
Rutherford Investment Management, LLC
Newsletter: 4th Quarter 2007
The Road Ahead — Watch for Bumps
Volatility returned to the markets in 2007. We have seen strong stock market gains between 2003 and 2006, with relatively low market volatility. But 2007 saw wide swings in market averages. The recent bull market has been fueled by an average 17% increase in earnings… Download Newsletter
Bill Rutherford In The Portland Business Journal
Yardstick of success: ‘Have I made things better?’ – Bill Rutherford
RESUME
Name: William “Bill” D. Rutherford
Title: President
Organization: Rutherford Investment Management LLC
Background: Finance, Business, Law, International investing and business politics
Education: B.S., University of Orgeon, LLB Harvard Law School
Residence: Portland
BUSINESS PHILOSOPHY
Essential business philosophy: The Golden Rule
Best way to keep competitive: Deliver the best client service and performance possible.
Guiding principle: The Golden Rule
Yardstick of success: Have I made things better?
Goal yet to be achieved: Making things better. […]
Bill Rutherford Quoted In New York Times
G.M. Pacy with Union Sets Off a Rally
by THE ASSOCIATED PRESS
Stocks rose soundly yesterday after word that General Motors had a tentative contract agreement with the United Automobile Workers and that Bear Stearns might sell a share in the company.
G.M., one of the 30 stocks that makes up the Dow Jones industrial average, led the market higher from the outset with news that a tentative pact that ended a two-day strike could allow the company to shed some of its burdensome health care costs.
Rumors that Bear Stearns would sell a stake took on new urgency in the final hour of trading with a report that the billionaire investor Warren E. Buffett was a potential suitor.
“Certainly it’s good to have problems that have been overhanging Bear Stearns off the table, if that can be done. That should help the financials,” said William D. Rutherford, president of Rutherford Investment Management in Portland, Ore., alluding to the recent failure of two Bear Stearns hedge funds.
The Dow Jones industrial average jumped 99.50 points, or 0.72 percent, at 13,878.15. The Standard & Poor’s 500-stock index advanced 8.21 points, or 0.54 percent, to 1,525.42, and the Nasdaq composite index increased 15.58 points, or 0.58 […]
Bill Rutherford Quoted In Reuters
Fed cuts target lending rate by 50 basis points
NEW YORK (Reuters) – The Federal Open Market Committee on Tuesday lowered the benchmark federal funds target rate by a half percentage point to 4.75 percent from 5.25 percent, where it had stood since June 2006.
The reduction was more aggressive than many investors had expected. A 25-basis-point cut was fully priced in by rate futures markets, but bets for a 50-basis-point reduction were pared sharply in recent days.
In a related move, the Fed also lowered the discount rate it charges for direct loans to banks by a half-point to 5.25 percent.
COMMENTS:
BILL O’NEILL, PARTNER, LOGIC ADVISORS, UPPER SADDLE RIVER, NEW JERSEY:
“Obviously this was a very substantial, aggressive move. I think it’s bullish for gold. I think it has potential inflationary implications.”
SCOTT FULLMAN, DIRECTOR OF INVESTMENT STRATEGY, I.A. ENGLANDER & CO:
Lower inflationary pressures combined with the liquidity problem continues to threaten the recovery in the housing market. It was apparent in the commentary that the Fed is concerned about the slowdown in the economy, reflecting that slowdown in the housing market would spill into the broader economy. There was commentary that the Fed would monitor the situations, which might include an increase if inflationary […]