Financial Markets & Credit Crisis: A Potential Solution

The failing of financial institutions are having a global impact on the financial and credit markets. The issues with Fannie Mae, Frddie Mac, Merryl Lynch, Lehman, AIG, and Countrywide were fairly obvious. Since March I have been predicting these type of failures by using the ratio of mortage based securities in a companies portfolio to total capital under management (mortage based securties/total capital under management). Also, I suggested that you use the Carlysle Fund ratio as your upper benchmark (or alarm). See, http://atomai.blogspot.com/2008/03/business-analytics-and-financial.html. If investors are being caught in these financial institutions failures and downgrades is because they are failling to do basic due diligence.

Also, I have suggested potential solutions that may have sounded fairly radical 6 months ago, but they are sounding more reasonable in today's financial markets. Let's allow more direct foreign investment in our capital markets. Second, target housing relief, for homeowners and financial institutions, to primary homes with a market value of up to $250,000. Lastly, let the market forces dictate what happens to properties valued at over $250,000. See, http://atomai.blogspot.com/2008/03/financial-markets-crisis-potential.html.

I have also suggested new metrics, using advanced analytics, as well as financial models that can be used to gauge risk and create a robust decision support system. See, http://atomai.blogspot.com/2008/05/bernanke-banks-must-get-better-at.html

These problems are not easy, but that is part of life...what we need is the will to implement these changes.

Microsoft BI Conference

Business Analytics Group Members,
I will be present at the Microsoft BI Conference in Oct 6-8 in Seattle, Washington, representing HP at our booth answering questions about BI design using SSAS in the the financial, marketing, internet, healthcare, CPG, life sciences, and retail industries. Also, I will be covering how to use advanced analytics for: improving view of the data by 40%; fraud detection; and improving server performance in large databases. If you are attending the conference let me know so we can meet.

I have met some of you, but most of the members of the group I have never meet in person. This is a great opportunity to meet, exchange opinions, and probably get some souvenir from HP. In the best case scenario you can claim that you saved thousand of dollars by consulting with me for free. In the worst case scenario you can claim that you "stumped the chump" (i.e., me) with your questions and knowledge.
Thanks,
Alberto
alberto.roldan@hp.com