Mish has his complementary equal in the UK's Sean Corrigan, whose metier is to find the problems at the minute level.. To wit:
When your stocks go down, exponentially, to the mean, my inventory will go down as well, concomitantly, not exponentially, and not revert to a mean. That is to say when a carpet I bought at $1000 begins to fetch only $500, well, housing and food fell in half too... when the stock of the companies falls 90%, then it hurts, or worse, the stick is wiped out in business failure.
90% fall is not going to happen? Starting a business is cheap insurance. At least hedge your bets...
Feel free to forward this by email to three of your friends.
Then there was the pensions wheeze. Ironically being delivered in the week when S&P noted that the 500 index’s members posted record pension and post-retirement benefit deficits last year of no less than $687 billion, the BEA’s new methodology henceforth counts contribution shortfalls of this type as a notional loan by the firm on which it will pay virtual interest, thus adding a corresponding phantom amount to the totals for the personal income and personal saving of their employees!Now, those of you who expect a pension to feed you as an elder, think about that. That you cannot, will not ever see such income is being treated today as the solution to the problem. The fact you cannot be paid proves you'll be paid. And you are wittingly accepting this? Companies utilizing such rationales are solid?
When your stocks go down, exponentially, to the mean, my inventory will go down as well, concomitantly, not exponentially, and not revert to a mean. That is to say when a carpet I bought at $1000 begins to fetch only $500, well, housing and food fell in half too... when the stock of the companies falls 90%, then it hurts, or worse, the stick is wiped out in business failure.
90% fall is not going to happen? Starting a business is cheap insurance. At least hedge your bets...
Feel free to forward this by email to three of your friends.
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