Investing: A Visual Guide Posted on August 14, 2008 by Yves Smith A classic from Tim Knight (click to enlarge): Post navigation ← Impediment to Bank Rescues Coming "Oil Prices May Have Peaked" → Subscribe to Post Comments 10 comments Anonymous August 14, 2008 at 4:53 am My investment strategy all explained. Richard Kline August 14, 2008 at 4:56 am However disconnected from reality, that is the view my inner child has always held of those who play with money. : ) Anonymous August 14, 2008 at 8:56 am At least in Vegas one can gamble away money in comfort while the house picks up the food and lodging tab. Hey, in Vegas one can even know the odds on a given game. The market is now a crap shoot where the odds are governed by more than the ‘unseen hand’. Approach the current market gaming table with extreme caution, if at all. River Anonymous August 14, 2008 at 9:57 am In this kind of scenario, you have to ask yourself: “What would Stan Weinstein do?” Anonymous August 14, 2008 at 10:13 am @River, Look at the bright side: Government and Fed manipulation of the credit markets should be a positive if you are long financials. So theoretically the house is on your side in the market ;) IdahoSpud (too lazy to log in) Anonymous August 14, 2008 at 12:07 pm Is that The Fed playbook for Bear Stearns, with comments from minutes? Anonymous August 14, 2008 at 1:58 pm IdahoSpud, Theoretically you are right but we both know how ineffective the government and Fed are at accomplishing specific goals (or their stated goals). Even if Ben B and Paulson called me up and swore they were going make a particular move, and in good faith intended to do so, I would doubt their ability to bring it off. All the intervention and (bad) regulation make for a market that is causing sea sickness to many on the good ship Lolly Pop…I stayed ashore at the last port o call. Now I am sittin’ on the dock of the bay after the Lolly Pop left port in yet another storm. OTOH I can approach a black jack table or craps table and I understand the odds and the house doesn’t usually change the rules of the game while I am playing. Just sayin’ :) River Anonymous August 14, 2008 at 3:11 pm @ River, Haha, I never said the Fed and Treasury would be able to accomplish their goal of propping up the financial sector, merely that they are on your side if you are long financials. I think we can agree that there is a high probability they won’t be able to save every “too big to fail” entity out there. I also agree that you get consistent odds in Vegas, rather than having the deck stacked intermittently! I approach a craps table with far less trepidation than I do the markets. :) IdahoSpud Anonymous August 14, 2008 at 3:52 pm Amen River. I would have been much better off over the last year had the fed not fiddled with things. In my opinion they have only added more volatility in the market. I can deal with down or up for fundamental reasons. Unexpected bailouts and rate cuts screw with my market projections. I would have been quite happy to see BearSterns go under as I was sitting short financials at the time. – Marsha Keeffer August 15, 2008 at 1:20 am Yves, was it you who let Mr. Knight look at my portfolio then draw this chart?!! There are too many similarities for this to be happenstance. Comments are closed. Tip Jar Please Donate or Subscribe!