Article on John Paulson

earlyAurum

Thought the mob might find this one interesting.

linky

jmski52

Real estate at low interest rates is a good idea as long as the market isn't one day marked to market in Florida, California and Nevada - and as long as the interest and payments on the government's $trillions in unfunded liabilities can be postponed. It's getting harder to do that.

There is a danger of massive deflation if a financial crash is precipitated by a counterparty demanding payment on a massive derivative position, and there is a danger that massive inflation could flare up at any time and be exascerbated by an actual physical shortage due to a crop failure or a delivery bottleneck on a futures position.

That's the danger - when are these probabilities coming home to roost? When, not if.

There are so many cross-currents that it is easy to forget what's happening at the macro levels in finance. Don't take your eye off the ball. Stay current.

pmcollectour

<< <i>Real estate at low interest rates is a good idea as long as the market isn't one day marked to market in Florida, California and Nevada - and as long as the interest and payments on the government's $trillions in unfunded liabilities can be postponed. It's getting harder to do that.

There is a danger of massive deflation if a financial crash is precipitated by a counterparty demanding payment on a massive derivative position, and there is a danger that massive inflation could flare up at any time and be exascerbated by an actual physical shortage due to a crop failure or a delivery bottleneck on a futures position.

That's the danger - when are these probabilities coming home to roost? When, not if.

There are so many cross-currents that it is easy to forget what's happening at the macro levels in finance. Don't take your eye off the ball. Stay current. >>





I was thinking the same exact thing.

earlyAurum

For me, the underlying message is that the only way out of this mess (massive government debt) is to devalue our currency which is what Big Ben is going to do. Once it takes hold, there will be inflation. The problem is when? It might next year or the next decade.

meluaufeet

It's old news... but Paulson also 'hired' Alan Greenspan:

link

earlyAurum

Hiring Greenspan was most likely a PR move. Alan was the Maestro at the time he was hired.