"The fox knows many things, but the hedgehog knows one big thing."


Glenn Reynolds:

Barack Obama:
"Impossible to transcend."

Albert A. Gore, Jr.:
"An incontinent brute."

Rev. Jeremiah Wright:
"God damn the Gentleman Farmer."

Friends of GF's Sons:
"Is that really your dad?"

Kickball Girl:
"Keeping 'em alive until 7:45."

Hired Hand:
"I think . . . we forgot the pheasant."

I'm an
Alcoholic Yeti
in the
TTLB Ecosystem

Tuesday, April 07, 2009

Buy Gold

What happens if you send a trillion dollars or so chasing after reasonably-priced assets?

The analysis of this paper suggests that recent credit market prices are actually highly consistent with fundamentals. A structural framework confirms that bonds and credit derivatives should have experienced a significant repricing in 2008 as the economic outlook darkened and volatility increased. The analysis also confirms that severe mispricing existed in the structured credit tranches prior to the crisis and that a large part of the dramatic rise in spreads has been the elimination of this mispricing.

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Comments on "Buy Gold"


Anonymous Anonymous said ... (7:16 AM) : 

Happy one month anniversary of this being the top post on G&S!


Anonymous Anonymous said ... (7:25 PM) : 

And this post is even better on its second-month anniversary of leading the blog. It gets better every day.


Anonymous Anonymous said ... (8:46 AM) : 

The stability of this post is like a shelter in the storm.


Blogger Faithful Sherpa said ... (11:47 AM) : 

I've been waiting for step two in this financial strategy for months now. I've got my large pile of gold, so what do I hoard next? Guns, or non-perishable foodstuffs?


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