Saturday, August 11, 2007

Bonds and Illegal Steroids

Perhaps I should start with an SAT type question:

Illegal Steroids : Barry Bonds :: _____ : Mortgage Backed Bonds

A. Investment Bankers
B. Ingorant Investors
C. Great Salesmanship!
D. Complete failure of governmental and private oversight
E. Bubble economy
F. Easy Credit

Whatever the answer, it appears that both Barry Bonds and Mortgage Backed Bonds have both acheived extreme levels of "pumpitude" and hit recent records.

Where the two types of "Bonds" diverge is in their public profile. One recent poll shows that 72% of people think Barry Bonds used illegal steroids. Pretty darned informed public if you ask me.

On the other hand, most people still have no idea of the impact of illegal steroids on their invesment returns, and this includes the professionals. I expect any type of poll on MBSs or CDOs to get responses from 72% of people such as "There's a problem with the what now?"

The Fed recently advocated for greater levels of financial education for all Americans. Let's hope it's not a "crash" course.

1 comment:

Anonymous said...


Great Post.

I just wish that 72% of Americans could find Iraq on a map! Sadly, they can't.