http://www.dailyreckoning.com.au/congress-gift/2008/09/26/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 http://www.dailyreckoning.com.au/congress-gift/2008/09/26/comment-page-1/#comment-43500 Arthur Rosenwald Mon, 29 Sep 2008 04:09:48 +0000 http://www.dailyreckoning.com.au/?p=3846#comment-43500 In today's "Too big to bail" Bill Bonner touches, I believe, at the essence of the financial problem. Although he won't agree with it. He says that capitalism is designed to "separate fools from their money". As if that's a good thing. In this time of smart mathematicians and computers everybody, in the end, will be a fool and thus separated from his money. In my book that's "capitalism gone mad". To say that only the market can put a true value on things is a nonsense. Things, like houses we build and food we grow, do have a real value. Sometimes, the "market" puts an incorrect value on this. So at that time we don't sell and should not be forced to. We then rightly look at our government to put some sense back into the system. This is not to say that I agree with the bailout. But somebody should remove the excesses out of the capital markets. Financing long term loans with short term finance is a procedure to create money out of money itself which should be outlawed. In today's "Too big to bail" Bill Bonner touches, I believe, at the essence of the financial problem. Although he won't agree with it. He says that capitalism is designed to "separate fools from their money". As if that's a good thing. In this time of smart mathematicians and computers everybody, in the end, will be a fool and thus separated from his money. In my book that's "capitalism gone mad". To say that only the market can put a true value on things is a nonsense. Things, like houses we build and food we grow, do have a real value. Sometimes, the "market" puts an incorrect value on this. So at that time we don't sell and should not be forced to. We then rightly look at our government to put some sense back into the system. This is not to say that I agree with the bailout. But somebody should remove the excesses out of the capital markets. Financing long term loans with short term finance is a procedure to create money out of money itself which should be outlawed.

]]> http://www.dailyreckoning.com.au/congress-gift/2008/09/26/comment-page-1/#comment-43100 Robert Fri, 26 Sep 2008 12:32:54 +0000 http://www.dailyreckoning.com.au/?p=3846#comment-43100 The music has ended will those standing please take a chair, whoops there arent enought to go round, looks like the USA will have to leave the game. My Harvard educated finance professor taught me a lot about money, and real returns so I sold most stuff early and watched it keep rising to unbeliveable heights. Now I am in cash and am waiting for the inevitable bargains, there will be lots of small businesses, with retiring owners that cant sell too. As they say what is misfortune for some is good luck for others. The music has ended will those standing please take a chair, whoops there arent enought to go round, looks like the USA will have to leave the game.
My Harvard educated finance professor taught me a lot about money, and real returns so I sold most stuff early and watched it keep rising to unbeliveable heights. Now I am in cash and am waiting for the inevitable bargains, there will be lots of small businesses, with retiring owners that cant sell too. As they say what is misfortune for some is good luck for others.

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