I heard that this whole credit crunch thing was due to senior management not
understanding the 'financial engineering' of the 'whizz kids'. Apparently
lots of numerate degree or post docs head off to the city, make a computer
model (it's science, right?) and come up with all kinds of financial
instruments to hedge the risk of bad loans. They cocked up big time when it
all started defaulting and a run ensued; a combination of greed and
incompetence. So it's a bit like how industry (or UK industry) is run down
in general by not putting enough technically trained people at board level.
I feel sorry for the pensioners. That's it, everything is buggered!
Pensions, cost of food, cost of fuel, taxes. An economy is of strategic
national importance and it has to be regulated better. Christ! they post
SAS/SBS (special forces) around airports, reservoirs at times of high alert.
Do anything which can cause this amount of mess then go to Guantanamo -
you're doing a better job than old Bin and his buddies.
I'm often puzzled how seemingly clever people when together group and do the
dumbest things. A lot of the physics establishment are like this too, they
know it's broke but they still keep ploughing down the same dumb alley
everyone else is, so partisan. By being a maverick and keeping one foot in
and one foot out you never have to sell your soul.
No, can the much older and wiser among us can you tell us what happened in
the last BIG one, you know the period 1929-1945 say?
They really Chernobyled here, "let's pull the control rods out a bit further
to do a dangerous experiment ('financial engineering') to see if we can get
more power (money)". Dumbass f..k-wits.
-----Original Message-----
From: Horace Heffner [mailto:[EMAIL PROTECTED]
Sent: 16 September 2008 08:00
To: vortex-l@eskimo.com
Subject: Re: [Vo]:[OT] Capitulation
On Sep 15, 2008, at 5:48 PM, Terry Blanton wrote:
> I moved to T Bills over a year ago. Will they survive?
>
> http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929
>
> Tery
Sure, but the dollars you get back might be worthless because the
only way the government can pay for all this is to print money. I
switched strategy the end of last year to mostly I-bonds and TIPS in
the hopes that if the government makes good then that capital will be
preserved. However, a lot of people holding war bonds got left
holding the bag after WW II. You would think an elected government
couldn't get away with that kind of thing. It's too late now to buy
I-bonds because the interest and limits have become unfavorable, I
assume because the government realized the rush that might occur for
them and the great difficulty of making good on them. I'm making
over 6% now on the I-bonds due to inflation.
Best regards,
Horace Heffner
http://www.mtaonline.net/~hheffner/
