Thursday, August 20, 2009


Some brief links and comments:

1. Japan is engaged in unconventional monetary/fiscal policy. You must click on the link to see the pictorial aspect of the article. Click HERE.

2. Click HERE for a juicy article from the L. A. Times on the UBS tax scam. No sex, but you gotta read it to understand how sleazy the financial services field is. It's not just Uncle Bernie (Madoff, but don't forget Ebbers). It's not just AIG Financial Products. It's not just Henry Paulson bailing out his buddies with your money. The corruption appears to be widespread. This is likely different in degree from some years ago. When investment houses such as Goldman, Sachs were privately held, they were responsible, because top management was collectively the major shareholder, along with retirees. Greed is not good.

3. Click HERE for thought-provoking big-picture commentary from Andy Xie, whose thinking I have followed since the beginning of this year and find worthwhile. (Hat tip Zero Hedge/Yaser)

4. Asian markets are opening down, but more interesting to my eye is follow-through strength from today's U. S. trading in U. S. long Treasuries. The 30-year is at 4.2%. You don't really want to lend the U. S. Government money at 4.2% for the next 30 years, do you, even if you are young enough to expect to get your nominal principal back? Well, some companies are, and they were briefly willing to lend it money at well under 3% just 8 months ago.
In a world where the NASDAQ exceeded 5000, who knows where the long bond could go?

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