Wednesday, September 19, 2007

Sign of the Times

My stock broker just invited me to attend a free seminar so that I can learn more about structured products and their rapid growth.

If I had to guess I'd say, "Stick a fork in it. It's done."

Hahaha!

Update:


Here's a blurb from January, 2007. It reads almost like my invitation, only without the warning.

Trichet warns of derivatives risk
Jean-Claude Trichet has warned that rapid growth of structured financial products and derivatives make it increasingly difficult to weigh up risk in the financial system...

I'll be passing on the free seminar, thank you very much, lol.

6 comments:

Anonymous said...

Treasury Secretary Henry Paulson told Congress on Wednesday that the federal government will hit the current debt ceiling on Oct. 1.
He urged quick action to increase the limit, saying it was essential to protect the "full faith and credit" of the country, especially at a time of financial market turmoil.

http://biz.yahoo.com/ap/070919/debt_limit.html?.v=2

Sell those bonds while we still have some suckers.

Kevin

Stagflationary Mark said...

Sell those bonds while we still have some suckers.

Hahaha! I could very well be one of them. I'm sitting in 3 month treasury bills, TIPS, and I-Bonds.

Time will tell.

Anonymous said...

I could very well be one of them.

I have a few myself although something about lending money to our goverment who had to "In Fiscal Year 2006, the U. S. Government spent $406 Billion of your money on interest payments* to the holders of the National Debt" doesn't make me to confident, also debasing the currency and something about paying for a war which I think is BS.
Intrest on intrest isn't that like borrowing money on one credit card to pay another one?
http://www.federalbudget.com/

Kevin

Stagflationary Mark said...

Kevin,

Yeah, I hear you. You don't see me backing up the truck on the 30 year treasury bond, lol.

I'm not saying it can't be a good investment, maybe, possibly, assuming we slide into a long-term deflationary mess somehow, but the risks that it could be a colossally bad investment (high inflation at some point during the next 30 years) are WAY too high in my opinion.

russell120 said...

I would take the structured finance if I can get them for pennies on the dollar.

I picture myself visiting my local flea-market on a fine Saturday morning. Right in-between the produce stand and the guy sharpening knives, will be some ex-Lehman Bros. guy with a couple of card tables (nice plastic table cloth draped across to give a unified appearance) trying to convince a Latino construction worker to sign up for some BB+ Countrywide paper.

Stagflationary Mark said...

Hahaha!!!

I would take the structured finance if I can get them for pennies on the dollar.

Well, you are in luck! It specifically states, "... learn what role they can play in an investment portfolio and how little it takes to get started."