Aimee's Blog

Pieces of Paper: Dollars, Euros, Pounds, and MBS, CDOs, CDS.

So will throwing ‘pieces of paper’ at other ‘pieces of paper’ solve anything?

I’ve been thinking about the stone money of Yap. If the bankers of Yap had created complex derivatives, how big do you think those stones would be?

Perhaps larger than island of Yap itself. Maybe that explains why bankers aren’t lending now.

Stone Money of Yap: Rai Stones

The extrinsic (perceived) value of a specific stone is based not only on its size and craftsmanship but also on the history of the stone.

Aimee

My comments on Hear: Prescription? Borrow. from NPR’s Planet Money.

I imagine the Fed’s job is to ensure confidence and would argue the TED is not a good measure/indicator. Perhaps that is true. But it’s also true that the Fed’s job is to wear rose colored glasses when advising the public on the status of the economy. 

But with the new found popularity of the TED spread (as evidenced in these comments & Planet Money’s popularity, & other web sites), the TED spread now has more significance than ever. 

I’ve read comments on other sites (for traders) about waiting for it to drop a lot before getting back in the market. For me personally, it’s effecting my confidence in the banking sector/financial system and therefore curbing my spending and changing the way I save.

I think the Baltic Dry Index will become more popular too. It’s like what David mentioned about Krugman’s “Widening Grye.” This crisis is growing and sweeping up everything in it’s path.

You can read my latest comments on my Views page.

Aimee
“Aim for Comments”