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Posts Tagged ‘game theory’

Do You Trust Uncle Sam?

Posted by Larry Doyle on March 20th, 2012 9:01 AM |

Don’t believe anything that you read or hear and only half of what you see… 

Almost from the outset of launching my blog back in early 2009, I coined the phrase the Uncle Sam economy to describe the massive presence and ultimate takeover of so many parts of our economy by the old man. I cautioned people that Uncle Sam was not a good business partner.

What makes a good business partner?  Anybody involved in business knows there will be many times when you disagree with your partners. Disagreeing with partners will not kill a business relationship. What will kill a relationship? A lack of trust.

Given that we are all in business with Uncle Sam whether we like it or not, I ask, “Do you trust Uncle Sam?” (more…)

The Stakes Are Raised

Posted by Larry Doyle on May 28th, 2009 7:46 AM |

The move higher in rates and lower in the U.S. dollar is nothing more than the market response to Ben Bernanke, Tim Geithner, and ultimately Barack Obama for the cards that they have already shown.

Managing one’s personal business and finances is anything but a game, but the manner in which Wall Street and Washington address economic and financial issues incorporates many aspects of “game theory.” As such, we need to adapt our own thought process and financial management accordingly.

Our leaders in Washington have shown many cards, including:

1. $780 billion Stimulus

2. proposed $3.5 trillion budget

3. multiple trillions in backstops to the financial industry (Sense on Cents’ link to Subsidyscope provides a wealth of info)

4. a trillion dollar plus commitment to quantitative easing targeted over a 6 month time horizon.

Be mindful that the “Washington wizards” are at the “table” and “playing the game” with borrowed funds. Each of us is also in the “game” whether we know it or not. We, along with foreign participants, are funding the window from which the wizards have to get the cash to stay in the game. The move higher in interest rates on the long end of our yield curve is nothing more than market participants (investors) “raising” the stakes on the “wizards.” (more…)






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