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Strategies & Market Trends : 50% Gains Investing -- Ignore unavailable to you. Want to Upgrade?

To: Crossy who wrote (94063)	9/15/2010 8:43:09 PM
From: John Vosilla	Read Replies (2) \| Respond to of 118717

The business cycle wasn't recovering much post 9/11. If the housing/credit bubble weren't forced onto the American people we would never have had the downfall we did the past three years.. It would most likely have been a tepid real jobless recovery like the early to mid 1990's but then GWB would never have been reelected. He learned his lessons from his dad on many fronts.. By late 2004/early 2005 the housing/credit bubble was so out of control and few were talking about it being any problem to deal with which astounded me. I was so fortunate to find SI to bounce this stuff off a few smart people back then. Look at the posts now versus then and it seems the masses timing was way off.. Heck Warren Buffet didn't see the housing bubble until his financial weapons of mass destruction call late in the game so I guess the conspiracy was limited to Wall Street insiders who really understood derivatives and CMO"S before they were household names.. We barely even talked about it until 2007 cause Wall Street protected that black box..

To: Crossy who wrote (94063)	9/15/2010 9:03:28 PM
From: IRWIN JAMES FRANKEL	Read Replies (1) \| Respond to of 118717

>>it's important to find "less correlated" asset classes. I would second that objective. I would argue that in the absence of a liquidity crunch, that the BDC's will be "less correlated". In essence, they are an opportunity to own the mezzanine finance business of a bank. Make many loans to spread the risk to rapidly growing businesses that are too big for most banks and too small to directly tap the capital markets. Then pass the earnings before being taxed to the owners - us. So this is a chance for us to own something better than a bank both in terms of growth and returns on a tax favored basis during a period of very low interest rates. Admittedly, these are unlikely candidates for 50% rises without counting the yields. :-) ij