tag:blogger.com,1999:blog-5785935717428454542.post5666955842146508941..comments2023-09-15T10:48:11.850+02:00Comments on The old version of Steen Jakobsen blog: A little learning is a dangerous thing but a lot of ignorance is just as bad.Unknownnoreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5785935717428454542.post-50964127976553305702008-10-05T13:57:00.000+02:002008-10-05T13:57:00.000+02:00With a little over 10x the insured limit of cash s...With a little over 10x the insured limit of cash sitting in my Barclays account, might I guess that you'd suggest that I not only remove such a deposit from an institution that struggled for cash during a three day period 2 weeks before the Northn Rock debacle and had to borrow from the Bank of England to stay afloat...but exit the pound market altogether for USD or EUR? Why?What happened to suggesting the CHF? I have no confidence in the USD and gold is so high, I'm looking at my jewelry and debating a fire sale..Should I buy cheap Chinese art and hope for the best? For the layman, the nonbanker, what should we, as individuals be thinking and doing? What is within our power to do both politically and financially speaking? ps- you are many things, Mr. J, but arrogant isn't one of them in my humble opinion. By attacking you personally, the "anonymous" contributor can rationalize their discounting of your opinions. Sticks and stones remember...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5785935717428454542.post-22921993691886045372008-10-03T18:22:00.000+02:002008-10-03T18:22:00.000+02:00SJ - thanks for the shoutout. Interesting way to l...SJ - thanks for the shoutout. Interesting way to look at it, but something to keep in mind is to trade what the market will do, not what it should do. The world we live in/trade is one where policymakers will not countenance a systemic collapse. Moreover, it is not historically unprecedented to do what US is doing now, as many countries have nationalized banks and mortgage markets in the past. And now that the crisis has hit Europe the policymakers are no longer willing to stand by and let the market tough it out(wait until European real estate adjusts to levels consistent with per-capita incomes; if we had a bubble you guys had a frenzy) Trichet's hike in July going to be biggest monetary policy mistake of the decade, along with FF at 1% from mid 03-June 04. If the right solution is for everyone to go bankrupt, then the next 5 years will be global depression. Andrew Mellon followed your advice in 1930 (liquidate labor, liquidate capital, liquidate land, etc) and that didn't work out too well for the world. Ben Bernanke did his PhD Thesis on causes of Great Depression, and you think they are going to stand by and let banks go under and libor go to 10%? I hope you are staying away from EDZ8 then. Remeber Keynes' beauty contest, what market should do is irrelevant, now more than ever.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5785935717428454542.post-27714030105306616042008-10-03T13:57:00.000+02:002008-10-03T13:57:00.000+02:00To me it seems they want buy at a price so high th...To me it seems they want buy at a price so high that the capital is preserved. Which should wreck the mortgage market, as then there are several market prices and I don't think that the US govt can artifically pump up prices. In addition with all these funny new accounting tricks, distrust will be embedded in the financial sector until resolution. Sentiment has changed: People know now that they are screwed.<BR/><BR/>Greetings from another European elitist :-)Anonymousnoreply@blogger.com