[stansd]

http://www.mozy.com

Nuff said.

Stan

[stansd]

http://www.mozy.com

Nuff said.

Stan

[stansd]

http://www.mozy.com

Nuff said.

Stan

[stansd]

http://www.mozy.com

Nuff said.

Stan

[stansd]

http://www.mozy.com

Nuff said.

Stan

[stansd]

I’ll take the unpopular other side of the debate. Just because CDS’s were abused doesn’t mean they should be banned. Annuities, options, short sales, Straddles, barbells, Swaptions, mutal funds…etc. can all be abused.

CDS’s have very legitimate uses both as speculative products, and as hedging devices for people with exposure to corporate debt. They also provide a valuable market signal that, over time, will prove much more accurate than any ratings agency (they provide a leading indicator of where rating agencies will move).

Classic baby and bathwater argument. Have there been abuses on a gargantuan level? Absolutely. Should there be more regulation in this space? Probably? Should we outlaw a valuable product precisely at the time where the market has now unveiled their true dangers (lets not forget that there always must be two sides to a transaction like a CDS)? No, we shouldn’t.

Financial innovation has risks, these risks are becoming much more well understood. Regulations that will have huge long term negative consequences are being proposed precisely at the moment when they are least necessary.

Stan

[stansd]

I’ll take the unpopular other side of the debate. Just because CDS’s were abused doesn’t mean they should be banned. Annuities, options, short sales, Straddles, barbells, Swaptions, mutal funds…etc. can all be abused.

CDS’s have very legitimate uses both as speculative products, and as hedging devices for people with exposure to corporate debt. They also provide a valuable market signal that, over time, will prove much more accurate than any ratings agency (they provide a leading indicator of where rating agencies will move).

Classic baby and bathwater argument. Have there been abuses on a gargantuan level? Absolutely. Should there be more regulation in this space? Probably? Should we outlaw a valuable product precisely at the time where the market has now unveiled their true dangers (lets not forget that there always must be two sides to a transaction like a CDS)? No, we shouldn’t.

Financial innovation has risks, these risks are becoming much more well understood. Regulations that will have huge long term negative consequences are being proposed precisely at the moment when they are least necessary.

Stan

[stansd]

I’ll take the unpopular other side of the debate. Just because CDS’s were abused doesn’t mean they should be banned. Annuities, options, short sales, Straddles, barbells, Swaptions, mutal funds…etc. can all be abused.

CDS’s have very legitimate uses both as speculative products, and as hedging devices for people with exposure to corporate debt. They also provide a valuable market signal that, over time, will prove much more accurate than any ratings agency (they provide a leading indicator of where rating agencies will move).

Classic baby and bathwater argument. Have there been abuses on a gargantuan level? Absolutely. Should there be more regulation in this space? Probably? Should we outlaw a valuable product precisely at the time where the market has now unveiled their true dangers (lets not forget that there always must be two sides to a transaction like a CDS)? No, we shouldn’t.

Financial innovation has risks, these risks are becoming much more well understood. Regulations that will have huge long term negative consequences are being proposed precisely at the moment when they are least necessary.

Stan

[stansd]

I’ll take the unpopular other side of the debate. Just because CDS’s were abused doesn’t mean they should be banned. Annuities, options, short sales, Straddles, barbells, Swaptions, mutal funds…etc. can all be abused.

CDS’s have very legitimate uses both as speculative products, and as hedging devices for people with exposure to corporate debt. They also provide a valuable market signal that, over time, will prove much more accurate than any ratings agency (they provide a leading indicator of where rating agencies will move).

Classic baby and bathwater argument. Have there been abuses on a gargantuan level? Absolutely. Should there be more regulation in this space? Probably? Should we outlaw a valuable product precisely at the time where the market has now unveiled their true dangers (lets not forget that there always must be two sides to a transaction like a CDS)? No, we shouldn’t.

Financial innovation has risks, these risks are becoming much more well understood. Regulations that will have huge long term negative consequences are being proposed precisely at the moment when they are least necessary.

Stan

[stansd]

I’ll take the unpopular other side of the debate. Just because CDS’s were abused doesn’t mean they should be banned. Annuities, options, short sales, Straddles, barbells, Swaptions, mutal funds…etc. can all be abused.

CDS’s have very legitimate uses both as speculative products, and as hedging devices for people with exposure to corporate debt. They also provide a valuable market signal that, over time, will prove much more accurate than any ratings agency (they provide a leading indicator of where rating agencies will move).

Classic baby and bathwater argument. Have there been abuses on a gargantuan level? Absolutely. Should there be more regulation in this space? Probably? Should we outlaw a valuable product precisely at the time where the market has now unveiled their true dangers (lets not forget that there always must be two sides to a transaction like a CDS)? No, we shouldn’t.

Financial innovation has risks, these risks are becoming much more well understood. Regulations that will have huge long term negative consequences are being proposed precisely at the moment when they are least necessary.

Stan

[stansd]

The only thing you are missing is the naivete of the investing public, the false assumption that the American empire can’t go under, and possibly the blind faith that the foreigners who supply our credit won’t pull our line in the face of their own economic insecurity and our profligacy.

OTOH, it may be more of a relative judgment…outside of Gold, if the U.S. were to suffer economic catastrophe, what investments wouldn’t go with it. Decouping hasn’t happened.

Regardless, this will end. The only thing giving me some confidence in the American economy is the fact that we don’t have the same level of unionization nor the same size public sector as other world economic powers-all things that will slow the adjustment of prices and wages toward the new equilibrium.

On that note, people have no idea how fast the unemployment rate is about to skyrocket. Not only are companies laying off workers, but boomers will be retiring at a slower rate, and people who were retired or semi-retired will be re-entering the workforce as their savings evaporate.

My bet is 10% Unemployment by June.

Stan

[stansd]

The only thing you are missing is the naivete of the investing public, the false assumption that the American empire can’t go under, and possibly the blind faith that the foreigners who supply our credit won’t pull our line in the face of their own economic insecurity and our profligacy.

OTOH, it may be more of a relative judgment…outside of Gold, if the U.S. were to suffer economic catastrophe, what investments wouldn’t go with it. Decouping hasn’t happened.

Regardless, this will end. The only thing giving me some confidence in the American economy is the fact that we don’t have the same level of unionization nor the same size public sector as other world economic powers-all things that will slow the adjustment of prices and wages toward the new equilibrium.

On that note, people have no idea how fast the unemployment rate is about to skyrocket. Not only are companies laying off workers, but boomers will be retiring at a slower rate, and people who were retired or semi-retired will be re-entering the workforce as their savings evaporate.

My bet is 10% Unemployment by June.

Stan

[stansd]

The only thing you are missing is the naivete of the investing public, the false assumption that the American empire can’t go under, and possibly the blind faith that the foreigners who supply our credit won’t pull our line in the face of their own economic insecurity and our profligacy.

OTOH, it may be more of a relative judgment…outside of Gold, if the U.S. were to suffer economic catastrophe, what investments wouldn’t go with it. Decouping hasn’t happened.

Regardless, this will end. The only thing giving me some confidence in the American economy is the fact that we don’t have the same level of unionization nor the same size public sector as other world economic powers-all things that will slow the adjustment of prices and wages toward the new equilibrium.

On that note, people have no idea how fast the unemployment rate is about to skyrocket. Not only are companies laying off workers, but boomers will be retiring at a slower rate, and people who were retired or semi-retired will be re-entering the workforce as their savings evaporate.

My bet is 10% Unemployment by June.

Stan

[stansd]

The only thing you are missing is the naivete of the investing public, the false assumption that the American empire can’t go under, and possibly the blind faith that the foreigners who supply our credit won’t pull our line in the face of their own economic insecurity and our profligacy.

OTOH, it may be more of a relative judgment…outside of Gold, if the U.S. were to suffer economic catastrophe, what investments wouldn’t go with it. Decouping hasn’t happened.

Regardless, this will end. The only thing giving me some confidence in the American economy is the fact that we don’t have the same level of unionization nor the same size public sector as other world economic powers-all things that will slow the adjustment of prices and wages toward the new equilibrium.

On that note, people have no idea how fast the unemployment rate is about to skyrocket. Not only are companies laying off workers, but boomers will be retiring at a slower rate, and people who were retired or semi-retired will be re-entering the workforce as their savings evaporate.

My bet is 10% Unemployment by June.

Stan

[stansd]

The only thing you are missing is the naivete of the investing public, the false assumption that the American empire can’t go under, and possibly the blind faith that the foreigners who supply our credit won’t pull our line in the face of their own economic insecurity and our profligacy.

OTOH, it may be more of a relative judgment…outside of Gold, if the U.S. were to suffer economic catastrophe, what investments wouldn’t go with it. Decouping hasn’t happened.

Regardless, this will end. The only thing giving me some confidence in the American economy is the fact that we don’t have the same level of unionization nor the same size public sector as other world economic powers-all things that will slow the adjustment of prices and wages toward the new equilibrium.

On that note, people have no idea how fast the unemployment rate is about to skyrocket. Not only are companies laying off workers, but boomers will be retiring at a slower rate, and people who were retired or semi-retired will be re-entering the workforce as their savings evaporate.

My bet is 10% Unemployment by June.

Stan

[Author]

Posts