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Strategies & Market Trends : Heinz Blasnik- Views You Can Use -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (713)	5/5/2003 6:41:39 PM
From: The Ox	Read Replies (2) \| Respond to of 4912

You still seem to be suggesting that one should invest with a singular focus: How can I protect myself (or profit) from a "worst-case future scenario". Like paying for insurance, one should consider a small fraction (a very small fraction) of one's portfolio for this type of "investment" or risk protection. Otherwise, one should "invest" in their view of the future, with the bulk of the investment in areas where the "potential" return is the greatest. I would disagree that our manufacturing sector has been "gutted". I certainly would not characterize this sector of the US economy in such a fashion and I think you do a disservice to everyone who works in this area to make such a claim. You seem to imply that luck is the only reason America has done well in the past. Bad luck caused the depression and that good luck going forward is the only way Americans will prosper in the future!?! If this is what you are suggesting, then I (politely) say that you are a fool and that you don't have a clue as to what America and Americans bring to the world's economic tables.

To: Wyätt Gwyön who wrote (713)	5/5/2003 6:46:32 PM
From: Win-Lose-Draw	Respond to of 4912

derivatives meltdown in the next 5-10 years whatever happened to the JPM meltdown that people were swearing up and down was going to happen last year?

To: Wyätt Gwyön who wrote (713)	5/5/2003 9:18:02 PM
From: EL KABONG!!!	Respond to of 4912

Darfot, Re: Munger... story.news.yahoo.com On derivatives Buffett: "I find it extraordinary that you have two derivatives dealers and they write a ticket and Dealer A records a profit and Dealer B records a profit: that's a world I'd like to live in, but I haven't found it yet." Munger: "In engineering, people put big margins of safety in systems.... In the financial world and derivatives it's as though nobody gave a damn about safety.... I'm more negative than Warren: I'll be amazed if I live another five or 10 years and we don't have a significant blow-up." Buffett: "They've been advertised as shedding risk, reducing risk in the system. I think they have long crossed the point where they reduce risk and now they're adding risk.... You haven't shed risk at all - you've transferred it to a very few players and those players have great interdependencies." KJC