subprime - it takes a cartoon to understand this stuff... - Page 2
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Thread: subprime - it takes a cartoon to understand this stuff...

  1. #11
    Bad assumption my Norwegian ass!



    Quote Originally Posted by ;
    check this out c ar toon powerpoint, its a wonderful illuion of exactly what goes on from the credit score m ar kets:

    http://docs.google.com/TeamPresent?r...7skipauth=true

    this isn't just absolutely hil ar ious, but it also present s ome very wise lessons for investors. As you guys have seen recently, I'm a large fan of breaking m ar ket mechanics in their simplest form to expose the mathematical truth of the instrument, m ar ket, order etc etc. there is no way to turn shit into value, as is flawlessly illued in this c ar toon. You get shit out if you put shit in, there is no way ar ound it LOL. A lot of people get when those wallstreet geniuses straightforward things, thats duped s peculators appraise tools, and must remain skeptics.

  2. #12
    Quote Originally Posted by ;
    as you guys have seen lately, I'm a big fan of breaking down m ar ket mechanisms in their simplest form to expose the mathematical truth of this instrument, m ar ket, order etc etc. there is no way to turn shit into value, as is absolutely illued within this c ar toon. You get shit out if you put shit in, there is no way ar ound it LOL. A lot of folks get fooled when these wallstreet geniuses complie simple matters, thats why we a so prudent s peculators must stay skeptics, and evaluate instruments on their most basic level.
    Among those things I always try to keep in mind is that economics is in fact quite simple. In order for people to live, we must turn natural resources into useful stuff. But we have that substance, or the stuff gets worn out or damaged by the environment from whence it came, therefore we must make more stuff. The economy is 1 dude on an island.

    Cash is only a handy way to keep an eye on the merchandise and services we all create, therefore it becomes easier to trade those items amongst each other. People who say that nothing backs our money don't really get it. Look around. All the homes, cars, telephone poles, asphalt roads, Nintendo GameBoys, bottles of Orange Crush along with my new hat is exactly what actually backs the money. Cash is backed by stuff. That stuff does not need to be heavy and polished.

    Should you loan me $100, you're assuming that I will somehow create at least $100 worth of value somewhere in the world which will allow me to pay you back. When the lenders of earth loan a hundred billion dollars to a group of debtors, the creditors ought to be basing that decision on the belief that those borrowers will have the ability to make at least a hundred billion dollars worth of new products and services on the planet during the loan period.

    However they F'ed up.

  3. #13
    This cartoons are amazing!

    Along with the reveal way clearer the aweful truth behind this mortgage crisis... and inspires us to believe how deep this could go...

    Regrettably that Fed and special groups designed to stop financial disaster made the fear TEMPORARYLY evaporate...

    but...

    when the sh! #$ hits the fan again... that the wreck is gonna be EVEN worse...

    I just expect when that happens to be brief on carry trades using the biggest lots I could have ever picture...

    LOL (not so funny...)

  4. #14
    Ignore me

    This was the killer


    Nice Bit Merlin

  5. #15
    I finally got my own posting rights back!
    I've been dyin' to state that.

    Yeah, that accountant was the best bit for me too!

  6. #16
    Quote Originally Posted by ;
    Nice Bit Merlin
    I knew You'd appriciate that You cesar

  7. #17
    Quote Originally Posted by ;
    In order for people to live, we have to turn natural resources into useful stuff. But then we have that stuff, or the material gets worn out or damaged from the environment from whence it came, therefore we have to make more stuff. The simplest economy is one dude on an island.
    If this aint down it to the simplest kind, I dont know what's

    where did you understand your economics? We must have had the same teacher because on most of your articles I wind up saying amen! .

    Quote Originally Posted by ;
    However they F'ed up.

  8. #18
    Quote Originally Posted by ;

    if that aint down it to the simplest form, I dont know what's

    where did you learn that your economics? We have to have had the same instructor because on most of your posts I find myself saying amen! .
    I had a good instructor in high school named Mr. Stevens who characterized economics simply as The science of choice. I didn't appreciate his intellect until many years later. At Northeastern my econ teacher was not so hot but the textbook was excellent as it came to illuing concepts in everyday conditions.

    Ayn Rand and Victor Sparandeo are huge influences. There also have been a few bizarre learning influences, classes I needed to create at Fidelity, economic models I've tried to build, as well as an internet game called SOL I used to play all taught me something valuable, particularly how important it is to simplify concepts down to their root character.

  9. #19
    Have you read greenspans book ? Unbeknownst to me, he had been a fantastic friends with ayn rand and he talks a lot about their relationship in the book. Personally, I think it was just friends, but I wont turn this thread into a gossip mag on you men

  10. #20
    Yea that sounds like the type of economics instructor my friend had as well, who constantly echoes this material back to me once I bring up these subjects. .

    Already saw the animation a while ago, was wondering whether to post itself. .

    Dunno, am I the only person getting somewhat tired of the entire irresponsible big people screw up, the little ones merrily get... let's just say stepped down?

    Http://www.portfolio.com/views/colum...nks?print=true

    I understand there are'sound'macro reasons for this; the contagion keyword etc pp and that you can't just let an economy blow up'to uphold a principle', but, I mean, come on. .
    All rather sad.
    Notably that as the exact same time that the authorities financing was super-cheapened to acquire liquidity back, the'end-user' was confronted with CC interest increases, new and entertaining bank access fees, etc pp. .
    Very honestly and to put it bluntly: it is disgusting.

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