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Showing posts from October, 2009

When Unit Tests aren’t Enough

Unit Testing of your work is generally accepted as the mark of a professional developer. However – have you thought about what happens when you make a boo-boo on the tests you create ? You guessed it – everything goes to hell in a handbasket. If the tests are flawed, they aren’t really telling you anything.  Sometimes it can be better (and faster)  to create an old-fashioned, Windows Forms test harness to exercise your “stuff”. Right now, I’m working on a complex project with many dozens of classes – more of them every single day. Often we are asked to make changes to many of these classes. When I do these, all I need to do is fire up my Winforms Test Harness and press one of the buttons. I can have breakpoints in the code at strategic places, and I can view the end result in a DataGridView that’s on the form. Sure, you can do that with a unit test, but then what you’re doing is “testing a test”. Unit Tests are definitely the way to go, but sometimes just being a Duct Tape Prog

Why the FED has turned the banking system into the Living Dead

Treasury Secretary Tim Geithner and Federal Reserve Chairman Ben Bernanke have denoted that the recession is over. Now that the DJIA has broken the 10,000 mark, we can expect to  have full confidence that economic growth is here to stay. But the credit markets are in a lot worse condition than some indexes  suggest. Buried within the October 3, 2008 bailout bill, which set up the Troubled Asset Relief Program (TARP), was a provision permitting the Fed to pay interest on bank reserves. Within a week, the Fed implemented this new power and  essentially converted bank reserves into more government debt. As the fed funds rate hovers around zero and existing loans in technical default continue to sit in bank portfolios, why should banks make new loans when they can make money for free with the government? They can now borrow from the Fed and  earn a huge spread by borrowing virtually unlimited amounts of money for nothing and simply lend that same money back to the Treasury.

Doomed to Repeat History?

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William O’Neil, in his excellent book “How to Make Money in Stocks”, has a chapter on the media, news, and market psychology. In this section he has taken the charts of the Dow Industrials from 1921 through 1942, and overlayed on this a chart of the NASDAQ Composite from February 1992 through March 2009, and indexed the data so that the charts both start at 100: What is remarkable about this chart is that the two time periods are almost exact duplicates. O’Neil used the NASDAQ for comparison with the 1929 era as it trades more volume now than the NYSE and represents more entrepreneurial companies. The reason history repeats in this amazing manner is that the markets are made up of millions of people acting almost 100% on human emotions. You can see two important history lessons from just looking at the above chart: 1. This isn’t 1929 right now in October, 2009 – its  Oct 1939. 2. The market (according to history) is not going to be very exciting for a long time – denoting a