Financial Standard Comments - Wolf, wolf It demonstrates how it's easy to get caught up in the mood of the moment and the silliness of extrapolating current dynamics into the future. https://www.financialstandard.com.au/feed/latest?story=12601974 Thu, 19 Jan 2012 13:30:26 +1100 Thu, 19 Jan 2012 13:30:26 +1100 en-AU Copyright 2026 Financial Standard 5 Comment by BB () Although I agree with general theme of "forget the forecasting" because let's face it, it's useless. What I do find interesting is the assumption that somehow "potential policy responses" is the answer to every issue that arises in the financial markets. Thus far we have tried almost every policy response in the book just to keep world markets barely afloat.
The assertion that our current economic issues can be solved with yet another stroke of the pen from politicians is quite frankly ridiculous and stems from the same type of thinking that keeps all the said forecasters producing the said crap that this piece addresses. This crisis is not just one of political will, it's one of circumstance and as such willpower alone cannot solve it, especially when all current willpower seems to be directed at avoiding the circumstance not addressing it!
The world has accumulated more liabilities than it can ever hope to repay, we either inflate those away or we don't pay them all back. How we actually deliver that outcome, over what time frame and what the ultimate impacts will be are the only unknowns here (we are already starting to see the social and political impacts in various regions).
Now if you feel that this circumstance & outcome is conducive to the same risk asset return potential we experienced for the last two decades, then A. your quite the betting man and B. you're not one for playing the odds.

Reply to article

For original story, Click Here.

]]> BB () Thu, 19 Jan 2012 13:30:26 +1100