Over the weekend, Dogbert explained the reasoning behind the mortgage problems we have been having for the last couple of years.
Then, today I saw even further explanations of the market. *Giving Credit where credit is due
“Think of financial theory as a stool. The stool is supported by three legs, or truisms.
• History always repeats.
• Past performance is no indication of future returns.
• Asshats are trying to steal your money.
These three truisms can explain any financial phenomenon. For example, if your financial advisor suggests that you invest in a market bubble that is about to burst, he will explain that the past is no indication of future results. Just because a Price/Earnings ratio of 45 has never been sustainable in the past doesn't mean it won't be perfectly safe in the future.
And when the bubble bursts and you lose half of your money, your advisor will explain it's because history always repeats. In other words, he's an asshat trying to steal your money. “
Last week an asshat (shouldn’t that be two words?) was arrested after his sons turned him in for being a common thief.
Ok, maybe $50 BILLIION dollars in theft isn’t a common thief, but he is still a thief. **
Over the weekend I heard a rumor that the US Govt. loaned $3Trill just before the market collapsed and they proposed the TARP to cover the mess. BUT the Govt isn’t saying to whom they loaned the $$.
Does Wall Street, or the Govt, really wonder why there is a confidence problem in the market?
I sincerely hope that the Obama administration can solve our problems. The current thieves in congress and Wall Street sure aren’t.
*Scott Adams espouses these ideas, I shamelessly borrow from them for my posts.
** so is a $2,000 hooker a common prostitute?