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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (136833)	7/4/2012 2:08:07 AM
From: John Pitera	1 Recommendation Respond to of 224757

As Art Cashin famously said, you always want to keep enough gold on hand to bribe the boarder guard...... Maybe that's Romney's bribe the boarder guard , get out of where ever money...... I've been working on my sequel to the Credit Default Swaps debacle of 2008..... my first article on the problems that the FED had already figured out back on Sept 15, of 2005..... this next 3 year debacle is going to be much more destablizing. It involved the US credit rating and the fact that when you price all assets you price them against the "risk free" return of US Tbills. when the US slips another rung or two lower on the rating of sovereign debt. Then your benchmark disappears upon which the majority of all other financial assets are priced. You can take all the finance models and 1000 MBA books on pricing financial assets and pretty much chuck them in the garbage. at that point..... the pricing of the entire gamut of financial and other assets is going to need some very bright folks to come up with new methods. This current period of turbulence is cyclically not scheduled to be over until 2017....... so we've got a few more acts to come. John