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Thursday, August 26, 2010

Worst Financial Commentary Ever?

When I worked at a hedge fund, the taders were constantly mocking the "explanations" for price movements being offered in the financial press. But today I saw perhaps the "best" "explanation" I have encoutered. I don't think CNN offers an embed link to this video -- and once you listen to the pearls of financial wisdom, you'll understand why. Explaining the reason gold prices are rising, Carter Evans reveals the secrets of high finance:

"[Gold is going up] because the amount of gold can actually be accounted for whereas stocks and paper currency are really just a representation."

So there you have it folks: gold is going up because there is no possible way of knowing just how much IBM stock there is out there, while for gold, we know the exact quantity to the ounce, even of the undiscovered bits still in the ground.

1 comment:

  1. To counter the idiocy, I found this to be a sensible perspective on liberty, regulation and litigation.

    ReplyDelete