avi-blog-and-suggested-resources

Ipad

Tue, 13 Jul 2010 16:21:20 +0100

Got my ipad yesterday, and I really see it as being a useful tool in my practice. Unlike a traditional laptop, it is exceedingly light and easy to slip in a bag with no added weight. I do not carry the charger or anything. It is amazingly smooth, and there are a decent number of productivity apps. I find myself able to hook up to mobile hotspot on my palm pre and sitting and working anywhere.

Initially, I was skeptical of the Ipad, but I can admit when I am wrong.

Book Review - The Big Short

Mon, 12 Jul 2010 13:32:28 +0100

Over the weekend, I read The Big Short by Michael Lewis. Lewis is a great storyteller, and really knows how to find the characters to make a catastrophe like the financial crisis comprehensible. This is the best book I have read yet on the origins of the financial crisis.

To start off with Lewis' conclusion, Wall Street should have been allowed to disappear in the fall of 2008. It had no redeeming qualities, so driven by the need for profit and outrageous salaries, whatever value Wall Street used to provide was long gone, undone by small partnerships becoming large public companies with the wherewithal to bet huge sums in a rigged casino.

Amazingly, only a few people understood what was happening, and these are Lewis' protagonists. They see the catastrophe heading our way and set out to make some money while warning the world. Most get rewarded with scorn for their troubles until the huge collapse of the subprime market and then Wall Street allowed them to make out like bandits. These Jeremiah's probably were not prophesying for the good of the world, and probably would never have had enough influence to change things anyway, but to Lewis that is precisely the problem.

Huge bonuses for traders and assets under management for hedge fund managers were all that mattered. That it was a house of cards that could not persist was irrelevant since none of the gamblers had to worry that far down the line. For a long time, they rigged the game anyway against anyone who was not a huge Wall St. player. They even took down the world's largest insurance company.

At some point, drunk with profits, these Wall St. geniuses lost sight of what was happening and started believing their own propaganda. At that point, they sunk themselves. After rigging the game in favor of the banks, or the House at the Casino as Lewis would have it, the House started betting its own money - to disastrous results.

Why were these fools bailed out? Lewis sees the creation of huge side bets that made the whole system ready to collapse as the reason. In another post, I will discuss the book, "13 Bankers" by Simon Johnson and James Kwak who explain how the government has been bought in whole and is operating as a subsidiary of the finance industry.

What then is the solution? I think it won't come until the next huge crisis, which is on its way, we just do not know when or what will trigger that crisis. At that point, there will be so little political flexibility to bail these morons out (and they expect to be bailed out) that the end will come and Wall Street will finally be restructured or replaced. I wish there was a better way, but it appears doubtful.

Fannie and Freddie - What are you Thinking?

Fri, 25 Jun 2010 12:05:57 +0100

Fannie Mae and Freddie Mac, the nation's biggest mortgage underwriters through purchases on the secondary market of loans, have said they will not allow borrowers who have walked away from their loan for strategic reasons (i.e., the loan was under water but they could still afford to pay). This decision is counter to intelligent policy and will saddle Fannie and Freddie with decisions it cannot possibly make. As both of these entities are owned by the Federal Government, they should be operating in the public interest and not in regard to boosting profits. This move might help forestall some borrowers from defaulting, but it will involve a complex evaluation of whether people are strategically defaulting, and it is not clear how fannie and Freddie will figure that out. It is not like these agencies were particularly good at their initial credit decisions or evaluating the loans they purchased. Furthermore, parties to a contract should be allowed to default and accept the consequences. Additional penalties beyond foreclosure pervert the process of making a contract and are unfair to borrowers. Banks and others often default on loans and other contracts when it is in their economic favor, and it is likely the most efficient result for many homeowners. The Federal Government should not be discouraging people from seeking out their best economic advantage just because it is bad for banks, Fannie and Freddie.

Ferriero's Conviction Likely to be Tossed

Fri, 25 Jun 2010 11:56:05 +0100

A few months ago, I wrote about the infirmities in the conviction of Joe Ferriero. After yesterday's Supreme Court ruling on the conviction of Jeffrey Skilling, it appears that Ferriero is going home. In brief, Skilling's case was remanded to the lower courts because the basis of his conviction might have been the "Honest Services" statute, which had been used broadly by Federal prosecutors to catch those engaged in activities that were conflicts of interest from the interests of that individual's employer. Under the Supreme Court's interpretation, the statute only covers the taking of bribes and kickbacks from a third a party, as that is the conduct that Congress was addressing based on the legislative history of the statute. Schemes in which the defendant benefited from a conflict of interest, such as Ferriero who with his co-conspirator benefited from hiding their involvement with a company doing business with a municipality, but who did the work and took no bribes or kickbacks, will likely result in dismissal or retrial.

Beware of debt modifiers

Fri, 25 Jun 2010 11:21:21 +0100

I explain why over at Newjerseynewsroom.

Debt Settlement

Fri, 25 Jun 2010 11:20:42 +0100

The New York Times had an important front page story yesterday in regard to debt modification or debt settlement agencies. These for profit companies take large fees upfront while making extravagant promises as to what they can do for you. Most of the time, people end up being sued for their debts or foreclosure and end up with nothing for the fees and aggravation. A licensed attorney can help you with defending against lawsuits, negotiating settlements or a bankruptcy filing. Contrary to what the radio advertisements say, bankruptcy is a good option for many people in trouble with their credit card debts. Mortgage modifications are virtually impossible to accomplish no matter what people are promising. Please call me at 201-289-5352 to set up a free consultation. Don't fall prey to outlaws. Debt settlement agencies are illegal in the State of New Jersey unless they are non-profit and essentially offering their services free.

New York Times Article on Living Rent Free

Tue, 01 Jun 2010 12:47:38 +0100

The New York Times has a front page story on how those in foreclosure are living for long periods of time without paying anything, while the slow foreclosure process grinds itself out. Good idea to have a lawyer to help you drag out the judicial process and ensure your legal rights are protected. Please call me at 201-289-5352 for information on how I can help, affordably.

NFL Sacked by the Supreme Court

Tue, 25 May 2010 15:32:01 +0100

My analysis of the Supreme Court's decision ruling against the NFL is up at NewJerseyNewsroom.

Tree Damage

Tue, 23 Mar 2010 17:33:35 +0100

In the recent storm, lots of people had tree damage. See my analysis of the legal issues here.

Bloomberg Law

Thu, 25 Feb 2010 01:36:13 +0100

Now that my free trial period with Bloomberg Law is coming to an end I wanted to share my thoughts.

Bloomberg has put together a platform that has some innovative features and great design elements. Building a platform from the ground up has allowed them to really make use of the best web technologies, something which both Lexis and Westlaw should consider. Searches are opened in separate tabs so that you can view each case and return to something you have seen without losing your place. Absolutely a great idea.

Also, Bloomberg has perpetual history, no reason that your history should expire in two weeks, and that makes it somewhat easier to review things you have seen.

There also is a clever note taking tool that allows you put notes next to cases, so that they will be there when you next look at the case. This is a nice feature to allow you to avoid rereading things you should already remember seeing.

In general, the interface is quite nice, though there are some aspects that could use refinement.

In terms of content, however, Bloomberg is way behind the big boys. Secondary content is limited, much of what is available are proprietary journals and not more general interest content. Most cases have no headnotes or summaries and coverage seems to vary significantly by jurisdiction. I ran a test search in NJ Cases on Lexis and Bloomberg, and Lexis had many more hits than Bloomberg. Right now, I just was not sure I could trust Bloomberg for my serious research needs.

Also poorly considered is Bloomberg's pricing, which is one size fits all. I currently have a contract with Lexis that limits me to certain jurisdictions, but that resulted in a much lower price than the $450 a month charge that Bloomberg is seeking. Right now, I just do not see any research service being worth that much, but certainly not Bloomberg.