Someone please start talking sense

People must be losing their minds. Over the last few days, I have seen some of the stupidest, most overly simplistic opinions broadcasted about the presidential race and the economy. 

If anyone is curious in listening to someone who knows what they are talking about with respect to the problems in the economy, you should check out what this man has to say. He doesn’t tackle the entire issue, but he covers a good chunk of the problem with a great deal of accuracy. If you want the executive summary just head to the bottom for the advice. In short, statistical models are inadequate in predicting the frequency and magnitude of extreme events in financial markets (for several reasons), and a modified approach and greater redundancy is necessary for survival. 

If you are looking for a living breathing proof of concept, look no further than Mr. Buffett’s investing strategy, and ask yourself if you think it is an accident that Berkshire has a lot of extra coin right now.

Good

There are a ton of people crying about Lehman Brothers going under. Personally I am glad. The market needs to flush this garbage out of the system. We really don’t need the government or other idiots propping these companies up and dragging out the uncertainty. These problems didn’t just surface over the weekend. They have been strung along and downplayed for quite some time now. It is about time that things are allowed to go about their natural course.

This crap happens, and regulation is not the answer. I would say arguing in favor of increased regulation is like saying we need the “specialists” on the NYSE (for example) to maintain orderly markets. It is just more power away from you and to the planning board (what those people do can be interpreted as stealing in many contexts, but I’ll let you look it up for yourselves).