I have read these two paragraphs several times, and am still trying to define the gist of the material. John Quiggin evidently wants to write a dirge for hedge funds and money market funds in general. I am somewhat like dsquared, who would have a proper response to the development of credit derivatives since 2002. The big element in all of this might be research into the managed holdings of Corporate funds, which seems to stay out of market activity up to this Point. We all await the turn of the Year, to determine the Marketing strategies of the Majors who have lost Sale Weight over the last Year due to their association with Entities which have tanked. January will bring clarity, if only by the slashing of distractions from the financial crisis.
I first thought that this Post was a great addition to my Piece, because it would say something in defense of Peer Steinbrueck; I tending to side with the German view. Nick Rowe, though, quickly turns the arguments to assumed Equations; all of which have to be defined as accurate and fair in determinate solution. Then the ‘assumed’ part of the Equations take hold, and nothing is gained until actual Values are plugged into the Equations. I will make it worse, and state that capital mobility is sonic wave, and some half of all values will give Readings equivalent to perfect capital mobility. My mind is not working this morning, as I cannot define the sense of the Rowe argument, but a better explanation may come along.
Arnold Kling also has some difficulty with Modeling this morning, mentioning that de-leveraging has practically no association with standard finance models. Arnold would like the Parrot to fly away, but still thinks the bird is dead. There are too many liabilities associated with financial instruments, and the downward bow of mortgage securities will not straighten anytime soon. Arnold’s finite Recession will not replace the Great Depression II very soon. Mark Thoma brings on a set of data which gets me to inquire why Everyone descends to basic introduction Economics terminology which is as confusing as when first issued to me some decades ago. Do I want to go back to widgit finance? I barely have time to integrate compound Oil products. lgl