“Today’s Ponzi-style acute fragility and speculative dynamics dictate that he who panics first panics best.”
– Doug Noland (Prudent Bear Funds, Credit Bubble Bulletin, 10/26/07)
First, let me apologize to you dear reader, for Quote Critique has been on a brief but unfortunate hiatus due to extreme lethargy and sexy booze filled nights. Now that my vacation time in NYC is drawing to a close, I have some time to sit down, think, and write about the market’s machinations.
Although his fund’s name suggests a permabear outlook, I find Mr. Nolan’s perspective to be quite accurate in this environment. It is fitting that a reference to Ponzi scheme finance should be discussed in lieu of the Madoff scandal, and the timeliness of the quote is all the more impressive.
Personally, I’ve been wary of this market since reading Peter Schiff’s “Crash Proof” in May of 2007, and it is safe to say that the paranoia has served me well. One day the bears will hibernate and the bulls will emerge from their confines, but until I see some market stability, I’m keeping myself occupied with less stressful endeavors and diversifying my income.