The Best of the Aleph Blog, Part 8

November 2008 through January 2009 was a rough period.  The markets were in chaos.  My best posts I will categorize for your benefit:

Criticism of Government and Central Bank Policy

As the crisis hit, the government was not willing to reconcile bad debts, but insisted on on putting off pain.  Though Depression was staved off, it came with a price, which includes a future depression.

The Crisis

As many grasped at straws, the crisis was best understood as too much debt, and because that was not a part of the neoclassical economists’ playbook, they floundered, having no idea of why the crisis was occurring.

Investment Ideas

Many good ideas for how to play the market in a depressed state.  The call to buy junk bonds was a very good call.

Other Topics:

The Biggest, Baddest Bubble of Them All

Why entitlements are the weak link in the US economy.

Fair Value Accounting — It Is What It Is

Why fair value accounting if properly done, is the best method for accounting.

Public Pension Plans Doubling Down

Public pension plans had a naive faith in the power of equities.

Waiting for the Death of the Chicago School, and the Keynesian School also

Most economists don’t have their heads screwed on straight.  It is only a matter of time before the view of economists change to more of an Austrian or Minsky perspective.  Oh yeah, and the Santa Fe Institute…

The Sterility of Stability

Past economic relationships disappoint.

Liquidity Management is the First Priority of Risk Management

Very basic stuff, because cash flow is the life of a business.

Bicycle Stability Versus Table Stability — II

Real stability means that you don’t have to take any action in order to preserve value.

Creating a Black Swan

Got a lot of flak from this piece, but I still stand behind it.  Black swans are created by those that think a financial trend can continue indefinitely.