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The man from Morgan Stanley:
Not only will those factors steadily lower our standard of living, but they will imperil economic and financial stability.

Which hasn't happened so far.

Does 'entitlement spending' include bank bailouts, or does it mean money spent on poor people?

by ThatBritGuy (thatbritguy (at) googlemail.com) on Tue Jul 7th, 2009 at 04:19:43 AM EST
[ Parent ]
The crisis is an outlier. What these people are worried is the growth rate in the upward phase of the next bubblebusiness cycle.

A man of words and not of deeds is like a garden full of weeds; a man of deeds and not of words is like a garden full of turds — Anonymous
by Migeru (migeru at eurotrib dot com) on Tue Jul 7th, 2009 at 04:51:07 AM EST
[ Parent ]
Pretty big outlier though.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Jul 7th, 2009 at 09:42:02 AM EST
[ Parent ]
That's why it's an outlier.

If it were just a 3 sigma move it wouldn't be an outlier.

A man of words and not of deeds is like a garden full of weeds; a man of deeds and not of words is like a garden full of turds — Anonymous

by Migeru (migeru at eurotrib dot com) on Tue Jul 7th, 2009 at 09:45:42 AM EST
[ Parent ]
Altec Corporation was an early spin-off of the Bell System and was long the premier manufacturer of audio equipment in the US.  It borrowed and issued stock and sold bonds for years.  Then it was bought by Ling-Tempco-Vought, a 70s conglomerate.  After a few years LTV fitted Altec with as much debt as it could conceivably carry, pocketed the proceeds and spun Altec off.  It took several years but Altec was eventually crushed by the debt.  One could say that the debt provided by LTV was an outlier, but it still sucked the life out of the company.

As the Dutch said while fighting the Spanish: "It is not necessary to have hope in order to persevere."
by ARGeezer (ARGeezer a in a circle eurotrib daught com) on Tue Jul 7th, 2009 at 09:59:46 AM EST
[ Parent ]
ARGeezer:
One could say that the debt provided by LTV was an outlier, but it still sucked the life out of the company.
I am on record as saying that outliers should not be rejected.

A man of words and not of deeds is like a garden full of weeds; a man of deeds and not of words is like a garden full of turds — Anonymous
by Migeru (migeru at eurotrib dot com) on Tue Jul 7th, 2009 at 11:13:47 AM EST
[ Parent ]
that's so last week tbg!

pre michael jackson even.

the revolution didn't happen, so they got right back into doing the only thing they know how to do.

termites don't think, architectural integrity and structural strength are not their thing...

unless the crowds have made it up to the 50th floor with blazing pitchforks these clowns run the circus.

risk is heroin to them

~"When an inner situation is not made conscious, it appears outside as fate." Karl Jung~

by melo (melometa4(at)gmail.com) on Tue Jul 7th, 2009 at 08:08:53 AM EST
[ Parent ]

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