Seeking Alpha

Tom Au's  Instablog

Tom Au
Send Message
In the early 1990s, during the middle of a secular bull market, I began work on "A Modern Approach To Graham and Dodd Investing," that was not particularly suited for the decade of the 1990s, but was ideally suited for the following "Lost Decade" of the 2000s.
My book:
A Modern Approach to Graham and Dodd Investing
  • "Austrian" Economics, and Its View of Banking 0 comments
    May 28, 2009 2:27 PM

    One of the tenets of the so-called "Austrian" school of economics is that most macroeconomic problems originate with banks and banking.

    An examination of the past twenty five years or so would support this view:

    Who created the successive bubbles in LBOs, IPOs, and instruments such as CDO's? Who created derivatives with a notional value several times the size of the U.S. economy? Who encouraged the U.S. home buyer to mortgage himself/herself to the hilt so that they could mortgage themselves to the hilt, and utlimately the U.S. goverment to the point where the country's AAA credit rating is called into question? Who purchased and packaged "subprime" mortgage paper for a living, and sold them to the world as "bonds," poisoning the global economic system in the process?

    There are other economic problems around. But most of them pale in comparison to the ones referred to above.

Back To Tom Au's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Europe's flying. Bought TEF and CEDC.
    Jan 3, 2012
  • Gold stocks didn't follow the underlying metal upward. Might be the thing to own when the metal rises again.
    Aug 30, 2011
  • Even (MCD) seems to be benefiting from the "coffee" craze
    Aug 23, 2011
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.