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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (70606)	10/13/2008 5:27:19 PM
From: Maurice Winn	1 Recommendation Read Replies (1) \| Respond to of 74559

BS, I'm joking about how great Uncle Al KBE was. I don't recall anything that I couldn't have done with my ignorant layman hat on. He did what I thought should be done, just 6 months to a year later. In Y2K I'd have increased interest rates maybe in 1999 when I was predicting the bust - he waited until the Y2K election was in the bag which I thought was perhaps a Republican stratagem. Then when the bust was over, I thought it was time to roar interest rates way back up, fast. His job was simply to keep the US$ as a profitable going concern. That means ensuring interest rates were in keeping with supply and demand. As with Globalstar pricing [if they did it well], when demand is high, increase supply and the price. When demand is low, cut supply and price. It doesn't seem like rocket science. It would have been nice if the Globalstar satellite designers had been able to do rocket science instead of installing inadequate Gilbert connectors on the satellites. All Greenspan did was supply the money. What everyone did with it was up to them. Many people did foolish things which cost them their money which was transferred to the people on the other side of the trades. Warren Buffett as usual has positioned himself to be a person on the right side of the trades. He didn't get involved with credit default swaps and weapons of mass financial destruction, so it was obviously NOT compulsory to take out 110% mortgages and to guarantee those mortgages. Neither did I. Neither did lots of people. So why did the others take the plunge and whose fault is it that they did so? Blaming the person who invented money is like blaming the person who invented kilometres when somebody finds they CANNOT walk across Death Valley without water because it turns out to have been too many kilometres. "If only there were not so many kilometres, I'd have been fine. Kilometres should be the size of a mile and I should get free ones from the government". Money is more complex than kilometres because it varies from time to time and according to speed of transactions. But on the other hand, kilometres vary from time to time and depending on the speed of travel too. Get up to the speed of light and see how big a kilometre is. And try it out in a gravitational field as strong as at the dawn of time. Things go a bit spacey in that situation too. Financial relativity theory is NOT Newtonian. Newtonian money is gold and material objects. Modern money is more tricky and not for Aztecs to mess with. Aztecs [most of us] should use money simply to buy stuff when they have it and sell stuff when they haven't. Leave the financial relativity theory investments to those who think they understand it. Mqurice