If we really want to understand the credit crisis, we have to understand that it's really in a 3rd down situation, but not short enough yardage to warrant double tight ends. In fact, it's really more like a 1st down, or perhaps a 4th down, with the recession having a power play and a corner kick, just prior to a jump ball due to too many men on the field. If we have any hope of scoring a triple-double hat trick within 6 overs, the Fed will have to stay within the peleton and let the banks get the possession guy into the slot. Liquidity is running a 3-4, or perhaps a 4-3, or perhaps a box and one. It's all about moving the chains and it's a game of inches. Please remain seated for the national anthem.
29 April 2008
Understanding Finance Through Sports Analogies
Whoops. Twenty days ago, Morgan Stanley thought the credit crisis was in the "final innings", but now it's reverted to only the "third inning". I haven't been to a baseball game in a while, but I don't think innings progress from high to low. Maybe they do now.
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2 comments:
Maybe there are two different credit crises. Maybe more. A whole sequence of credit crises rising, cresting, tumbling over the great fiscal beach before pulling back with a sort of hissing noise which, in this analogy must be, I don't know, sand.
I like it. A series of credit crises. We are merely in the third tranche.
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