Our financial system is crumbling this week.

[AdmiralKird]

So...is anybody worries about the looming transformation from the usd to something else as world reserve currency?

There were some articles a few years ago speculating on a doomsday scenario involving central banks dumping the dollar in favor of the euro...

Meh, doesn't have much bearing on how things are now. That's saying someone was thinking of trading in their Cadillac a year ago for a BMW at a dealership before that beemer was hit by a hurricane and thrown into a pole.

[Hungary Jack]

So...is anybody worries about the looming transformation from the usd to something else as world reserve currency?

There were some articles a few years ago speculating on a doomsday scenario involving central banks dumping the dollar in favor of the euro...

Meh, doesn't have much bearing on how things are now. That's saying someone was thinking of trading in their Cadillac a year ago for a BMW at a dealership before that beemer was hit by a hurricane and thrown into a pole.

My point is things can change pretty darn quickly. But in the long run, our current fiscal policies cannot sustain a strong dollar. Our national debt now exceeds our annual GDP as we use more and more debt to finance consumption (as opposed to capital investment).

The more relevant pillar in sustaining a strong currency is a healthy and competitive economy, which means that you produce goods and services that other countries want to buy, which makes your currency in demand. I still view our economy as very competitive, but the public education system is probably a bigger threat to that than anything else. Regulation and our ridiculous tax code don't help matters either.

[TimeForGuinness]

So...is anybody worries about the looming transformation from the usd to something else as world reserve currency?

No, it means little to nothing. There will be demand for our currency so long as we remain one of the most productive countries in the world. As long as people want to do business in the United States, they will want (and need) US dollars.

This. I doubt we'll see it in our lifetime.

Just because we've had a bad 4 years doesn't mean it's the end. There have been worse times.

[AWvsCBsteeeerike3]

So...is anybody worries about the looming transformation from the usd to something else as world reserve currency?

No, it means little to nothing. There will be demand for our currency so long as we remain one of the most productive countries in the world. As long as people want to do business in the United States, they will want (and need) US dollars.

So, are you saying that there will be no repercussions when this does happen or are you saying it won't happen? I'm fairly certain the prior is a false statement.

[longhornbaseball]

So, are you saying that there will be no repercussions when this does happen or are you saying it won't happen? I'm fairly certain the prior is a false statement.

I'm saying there will be no repercussions when this does happen. What worries you about this?

[planet planet]

http://www.nytimes.com/2012/03/05/opini ... .html?_r=1

Why did government spending rise so much under Reagan, with his small-government rhetoric, while shrinking under the president so many Republicans insist is a secret socialist? In Reagan’s case, it’s partly about the arms race, but mainly about state and local governments doing what they are supposed to do: educate a growing population of children, invest in infrastructure for a growing economy.

Under President Obama, however, the dire fiscal condition of state and local governments — the result of a sustained slump, which in turn was caused largely by that private debt explosion before 2008 — has led to forced spending cuts. The fiscal straits of lower-level governments could and should have been alleviated by aid from Washington, which remains able to borrow at incredibly low interest rates. But this aid was never provided on a remotely adequate scale.

This policy malpractice is doing double damage to America. On one side, it’s helping lose the future — because that’s what happens when you neglect education and public investment. At the same time, it’s hurting us right now, by helping keep growth low and unemployment high.

We’re talking big numbers here. If government employment under Mr. Obama had grown at Reagan-era rates, 1.3 million more Americans would be working as schoolteachers, firefighters, police officers, etc., than are currently employed in such jobs.

[Hungary Jack]

I just love this bit of satire from The Economist

Dear investor,

In line with the rest of our industry we are making some changes to the language we use in our marketing and communications. We are writing this letter so we can explain these changes properly. Most importantly, Zilch Capital used to refer to itself as a “hedge fund” but 2008 made it embarrassingly clear we didn’t know how to hedge. At all. So like many others, we have embraced the title of “alternative asset manager”. It’s clunky but ambiguous enough to shield us from criticism next time around.

We know we used to promise “absolute returns” (ie, that you would make money regardless of market conditions) but this pledge has proved impossible to honour. Instead we’re going to give you “risk-adjusted” returns or, failing that, “relative” returns. In years like 2011, when we delivered much less than the S&P 500, you may find that we don’t talk about returns at all.

It is also time to move on from the concept of delivering “alpha”, the skill you’ve paid us such fat fees for. Upon reflection, we have decided that we’re actually much better at giving you “smart beta”. This term is already being touted at industry conferences and we hope shortly to be able to explain what it means. Like our peers we have also started talking a lot about how we are “multi-strategy” and “capital-structure agnostic”, and boasting about the benefits of our “unconstrained” investment approach. This is better than saying we don’t really understand what’s going on.

Some parts of the lexicon will not see style drift. We are still trying to keep alive “two and twenty”, the industry’s shorthand for 2% management fees and 20% performance fees. It is, we’re sure you’ll agree, important to keep up some traditions. Thank you for your continued partnership.

Zilch Capital LLC

There might not be a greater myth in financial services than the myth of paying someone to manage your investments. The vast majority of investment professionals underperform the broader market, and only a very select handful can consistently beat it. And then there are all the fakes and frauds.

[Freed Roger]

Jobs on the increase. Don't know what it means, but I wanted to post the picture. You got a melting pot of job seekers there. Geraldo Rivera on the right, an aging leprechaun in the middle, and droopy drawers holding the papers.

Really, not trying to make fun of them...well maybe a bit on their appearance. Just an interesting bunch. Probably some interesting stories there. Hope they found jobs.

http://www.nytimes.com/2012/03/10/busin ... ss&src=igw

[IMADreamer]

I've been hearding a lot more "we're hiring" ads on the radio lately too. So I guess there are some jobs that are hiring. Too bad they are all [expletive] jobs. This one gleefully boasts about the "great starting pay of as much as 9.50 an hour!" I wonder what those people will do with that extra four bucks they have at the end of the month after they've paid all their bills and eaten. Oh wait they won't have any left because that job doesn't have health care.

I also here all these reports that unemployment is down one one millionth of a percent or whatever. let's all celebrate! I wonder if it is really down because of new jobs or because the people stopped looking, lost their benefits, or died?

[cards2468]

Is it easier to herd ads or cattle?