I went to the bank to learn about bonds. They recommended Black Rock (formerly Barclays), General Electric and other large corporation's long term bonds. Sovereign bonds - they said no, it is riskier than large corporations. What about American bonds? They are going to be downgraded. What? Yes, Americans are indebted no less than the Greeks. So now that is official. If Israeli Banks lose faith in American sovereign debt, yields will increase and bond prices will go down. Therefore this is not a good time to buy bonds. What about gold? George Soros is buying gold. It is the ultimate store of value. If American T bonds collapse, what will be still standing? Gold. Fucking pessimists. Should I buy American Corporate A or B bonds?
Black Rock has elaborated lectures for their clients. They write that "fat tails" are only the sum of two Gaussian distributions. Idiots. They identify four portfolio management strategies = the best is the "Prophetic". Oy.
Illustration: The Gold Ring of Courage, with kabbalistic protective inscriptions. I use no rings because I have seen a work accident where a machine cought a ring and the man's finger turned into a naked bone protruding from his hand.
10 comments:
Black Rock has elaborated lectures for their clients. They write that "fat tails" are only the sum of two Gaussian distributions. Idiots.
For those of us who did not go to college could you elaborate on why this is idiotic? My first encounter with "fat tails" and standard distributions was on Steve Sailer's blog, and my first impression was the same as Black Rock. I assumed that in a multiracial society like the US, a fat tail in say White intelligence would be the result of another (hidden) curve being present but not measured separately.
Don't buy bonds. Buy gold.
Dennis: Thanks. I am still shocked by the pessimism underlying the idea of hoarding gold. It assumes that the existing worldwide financial structure is going to collapse and financial papers may become worthless. I have to get used to the idea before I can buy gold.
Ronduck,
I shall read again that Black Rock article. Those papers are written in such an ambiguous language that it is difficult to understand what they are saying. Delphi oracles were more straighforward.
The US will default.
They will try to disguise it, but it will be obvious to anyone except Obama supporters.
It will be soon.
Anon.
J, I too have a really small hoard of gold.
I also have a small hoard of brass and lead.
Lead is poisonous. Dispose of it. Maybe it could be transmuted into gold?
J said: " Lead is poisonous. Dispose of it."
Ahem..... J, read Ronduck's comment again. Not "lead," but "brass-and-lead."
Do you understand?
Ronduck said: "I also have a small hoard of brass and lead."
Very good. But considering where we appear to be headed, perhaps you should accumulate a LARGE hoard of brass and lead. :)
Let me also suggest that all of you do a google search for "Northwest Territorial Mint silver bullion."
Their silver bullion bars and rounds are not only a store of value, but their product is made to a very high technical and aesthetic standard.
You can also purchase silver American
Eagles and also gold coins from them.
I have ordered from them before without any problems.
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