Archive - 2009 - Blog entry


December 31st

Reggie Middleton's picture

For all of those who feel China is going to take over the free world, just remember that when you blow a bubble (particularly a balance sheet bubble) it is bound to pop. The damage from the pop invariably does more harm than the boost from the bubble. It has always been the case, particularly when leverage is involved - which makes the impact that much more devastating. If anybody can attest to this, it should be us Americans (British, Spanish, Irish, those from Dubai, Japanese...).

December 30th

Leo Kolivakis's picture

What went awry at CalPERS is a textbook case of poor pension governance. And it's not just CalPERS. Reckless greed and sheer stupidity pervades the wider pension industry. Please read this comment carefully so you too are made aware of how pension investments can go awfully wrong.

Reggie Middleton's picture

So, what does it mean if we get another significant downturn? Well, not only are the 2003 to 2007 vintage mortgages in trouble, but those 2008 and 2009 mortgages are at risk as well. What are the chances of this happening? Fairly significant. For all of those guys who swear we are on the brink of a booming economic recovery, recall that it was housing depreciation that set all of this off to begin with.

inoculatedinvestor's picture

As the 'naughties' come to a somewhat anti-climactic close, it is important for those of us in the investment community to take stock of what new lessons have been learned, what immutable laws have been reinforced, and what changes in policy, strategy and execution need to occur in order to avoid a repeat of the booms and busts of the last decade.

December 29th