Mish's Global Economic Trend Analysis Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Chispas who wrote (74825)	2/16/2008 8:06:23 AM
From: Think4Yourself	Read Replies (2) of 116555

That guy hit the problem right on the head, but missed the root cause: transparency. There has been a lack of transparency in the securities market. People don't know, and actually can't know, what the true risk of their securities is. Securities that are rated AAA quality may actually be worthless. Because of the way some of the securities are set up no one entity knows the true risk of those securities. No one even knows if their insurance is any good. That is mind boggling, and it has caused the crisis of faith in the securities markets he discusses. This weekend I am checking into the insurance that is supposedly on my securities, and if the institutions backing them can pay claims in a crisis. If people like me are doing this then that is a very bad sign because it suggests the general public will be doing it in the near future. Our entire monetary system is based on faith, faith that someone will trade you goods and services for the pieces of paper in your wallet, and you will get them at a rate close to what you expect. This problem is getting out of control. If not reigned in very soon it will start feeding on itself.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next