Comments on: The Big Mistakes They Still Don’t See

By: Paolo B

Paolo B — Thu, 15 Jan 2009 20:49:08 +0000

“they planted wind, we are going to harvest the storm”

By: mark anderson

mark anderson — Sat, 03 Jan 2009 18:32:18 +0000

As usual, Tim has hit this problem exactly at the center. The real root cause began with shifting of assets from stable positions to hot money, on a global scale. Generally, this meant from savers in Japan to debt equity companies, from individual home owners to wall st. sharks, etc.

The interesting question here, perhaps not yet addressed by the economics crowd, is: if one person owns a stock, whose habit is buy and hold, vs. another holding stock, whose habit is day trading, their assets look the same in today’s metrics. But one is stable, and the other hot money.

By: Tim Coldwell

Tim Coldwell — Sat, 03 Jan 2009 15:39:43 +0000

Entirely too much shifting of capital from the naive to the unprincipled.

By: Robert Bowers

Robert Bowers — Fri, 02 Jan 2009 03:59:31 +0000

The problem is not a lack of brains or education but a lack of integrity and plain old guts. Of course, greed is also a given.

By: JK

JK — Wed, 31 Dec 2008 19:30:07 +0000

Let’s start a like-minded community. Let’s fight them back with what really hurts them: brains.

By: Paolo B

Paolo B — Tue, 30 Dec 2008 20:36:52 +0000

Well said!!!

To a better year.

Cheers

By: Neil Gregory

Neil Gregory — Tue, 30 Dec 2008 19:46:55 +0000

Mark,
You forgot the Investment Banks (and Commercial banks) running everything off balance sheet in SIVs (hello Enron!) and the fake insurance scam – still to unwind – through Credit Default Swaps. The Japanese didnt intend to blow up the world economy it was just an unfortunate(!) side effect of an attempt to solve their domestic problems without admitting the scale of the real estate bust in Japan.
Neil

By: Robert Bowers

Robert Bowers — Tue, 30 Dec 2008 19:01:51 +0000

To think that the basic cause is anything other than the worldwide use of fiat money is shear folly. Political appointees allowed to act without restraint will always pander to the masses and choose the least painful short term alternatives. All, repeat all historical precedents have ultimately resulted in the same end that we are now just beginning. In brief, there is no free lunch. To force your neighbors who have behaved rationally, honestly and fairly to provide free “lunches”repeatedly will but further the depth and rapidity of the demise of what has been the greatest and most successful experiment in human political history. You do ultimately reap what you sow.