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Politics : President Barack Obama -- Ignore unavailable to you. Want to Upgrade?


To: ChinuSFO who wrote (132550)4/1/2013 3:07:54 PM
From: JeffA  Respond to of 149317
 
Smoking weed does help one have a clear head........



To: ChinuSFO who wrote (132550)4/2/2013 7:34:16 AM
From: RetiredNow  Read Replies (1) | Respond to of 149317
 
You are right about Bush and Obama. Bush had impaired mental faculties...Obama's still sharp as a tack. However, Obama doesn't have much economics background and the likes of Bernanke and Krugman can twist things so well, that they can fool even the sharpest minds into believing prosperity comes from money printing and deficits.

However, here's what I see. Check out the charts below. When do you see processes or systems behaving this way? In my line of work, we call this a system that is "out of control", or a system that quite literally has an increasing amplitude that busts out of the upper and lower control limits defined by + or - 3-sigma. Two things are alarming about these trends. First, is that a new trend was clearly formed around a defining event, and second, it threw the system out of a stable trend into a highly variable one with ever increasing amplitude. It is almost the very definition of a process that is "out of control".

When I advise business managers in a scenario like this, I tell them that either we fix this by addressing the root causes we've found, or brace yourself for some shocking adverse business consequences. The risks are so high in a scenario like this that, I can almost guarantee a bad outcome for the business manager within a reasonably short period of time.

When I put my investor hat on, my advice is the same, to brace yourself, but since we investors have zero power to address the root causes, my advice is recognize the risk, absorb it, and then get out of the way so your life savings don't disappear.

This is based on 30 years experience looking at numbers, statistics, operations processes, and graphs and charts of all kinds representing an extremely diverse set of processes and systems. It's as practical a piece of advice as I know how to give.

Below are the charts, I'm talking about: