Tuesday, December 16, 2008

The Reason ? Ponzi Schemes will Survive

Quoting from Bloomberg and referring to Goldman Sachs:
``They've performed better than their peers, as only recently have they begun to post some losses,'' said David Killian, a portfolio manager at Valley Forge Advisors LLC in King of Prussia, Pennsylvania, which oversees $700 million and owns Goldman Sachs shares. ``The volatility of the returns is an important component, and the more volatile the less people are willing to pay for it because they can't predict it.''

And when they can predict earnings, it's either a ponzi scheme by an individual, a credit report by SP or Moodys, a "guaranteed insurance" product by AIG and its ilk, or no money down loans.

Volatility will be with us like the storms in the sea. And with that goes the old saying, "go with the flow!"

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