Comments on: Eight Notes and Comments on the Current Crisis http://alephblog.com/2008/10/27/eight-notes-and-comments-on-the-current-crisis/ Helping Institutions and Ordinary People Invest Better by Focusing on Risk Control Thu, 18 Mar 2010 20:53:26 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Bond newbie http://alephblog.com/2008/10/27/eight-notes-and-comments-on-the-current-crisis/comment-page-1/#comment-19598 Bond newbie Thu, 30 Oct 2008 03:53:56 +0000 http://alephblog.com/?p=1062#comment-19598 David, great points as usual. Couple comments: Taiwanese regulators seem hopelessly out of their league if they are demanding minimum credit score data on Ginnie MBS. Isn't disclosed, and who cares? Full faith and credit. Unless there's a hidden reason, I wouldn't worry too much about this. For a good rationale on why your comment about trading Taiwan for North Korea makes sense, read Thomas P.M. Barnett's books. PBGC is unique among corporate pensions in that it doesn't have a for-profit corporation to make contributions. Since there is no political will to shore it up (which is as shameful as the Social Security scam), PBGC's "best choice among bad choices" is to roll the dice in equities. Immunizing in bonds is safer, but too costly because they can't get new capital. David, great points as usual. Couple comments:

Taiwanese regulators seem hopelessly out of their league if they are demanding minimum credit score data on Ginnie MBS. Isn’t disclosed, and who cares? Full faith and credit. Unless there’s a hidden reason, I wouldn’t worry too much about this.

For a good rationale on why your comment about trading Taiwan for North Korea makes sense, read Thomas P.M. Barnett’s books.

PBGC is unique among corporate pensions in that it doesn’t have a for-profit corporation to make contributions. Since there is no political will to shore it up (which is as shameful as the Social Security scam), PBGC’s “best choice among bad choices” is to roll the dice in equities. Immunizing in bonds is safer, but too costly because they can’t get new capital.

]]> By: Eric http://alephblog.com/2008/10/27/eight-notes-and-comments-on-the-current-crisis/comment-page-1/#comment-19583 Eric Tue, 28 Oct 2008 16:14:37 +0000 http://alephblog.com/?p=1062#comment-19583 You're an insurance guy. It's the industry you know the best. Insurance stocks are being absolutely decimated --- not down, but destroyed. HIG in the mid teens? I would think you'd be falling over yourself trying to get a big, deep piece written about just what's going on. You’re an insurance guy. It’s the industry you know the best. Insurance stocks are being absolutely decimated — not down, but destroyed. HIG in the mid teens? I would think you’d be falling over yourself trying to get a big, deep piece written about just what’s going on.

]]> By: DaveinHackensack http://alephblog.com/2008/10/27/eight-notes-and-comments-on-the-current-crisis/comment-page-1/#comment-19575 DaveinHackensack Tue, 28 Oct 2008 03:53:12 +0000 http://alephblog.com/?p=1062#comment-19575 <I>"In this case, if your models of macroeconomics can’t accommodate the boom/bust cycle, you don’t deserve to be an economist."</I> I've found John Hussman's recent weekly commentaries to be worth reading. I suspect that since he is a portfolio manager as well as an economist, he is more grounded in reality than some purely academic economists. “In this case, if your models of macroeconomics can’t accommodate the boom/bust cycle, you don’t deserve to be an economist.”

I’ve found John Hussman’s recent weekly commentaries to be worth reading. I suspect that since he is a portfolio manager as well as an economist, he is more grounded in reality than some purely academic economists.

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