Monday, August 11, 2008

Perceptions, Perplexions and French Incredulousness

Marlene Healey

When dealing with the insane, the best method is to pretend to be sane.
Hermann Hesse (1877 - 1962)

Marc Faber said two things in his commentary (Bloomberg interview that I referenced here

To Paraphrase: (1) Whenever global liquidity tightens, it is bad for stocks, but good for USD; (2)
Time lags between economic events until the markets perceive them.

It's the second item that really resonated. One of my perennial perplexions has been this lag, as the market is somehow a perfect discounter of information. If I were to have understood this as it is (lag) v. as it is theorized, I feel that my learning curve would have had a steeper trajectory. Best to learn sooner and better to learn later v. not at all!

I watched some of the Olympics last night, managing to keep the lids pried open long enough to see the men's 400IM and the Americans win by 1/2 a stroke. It was certainly one of the most memorable moments in sporting events--particularly given the intemperate boasting of the French. The French team was stunned--I've never seen such blank, incredulous expressions---and that looked caused disappointment to pale in its comparison.

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