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.

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.