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Finance in your local newspaper

March 13, 2009

In the business section of this week’s Town Crier, Rick Glaze of Glaze Capital contributed an article with the headline “New regulations could threaten mortgage markets.”  It is seven paragraphs of obvious statements, semi-accurate definitions, and safe guesses.  But if you were a client of Rick’s, you presumably would expect nothing less.  Because you would be accustomed to his 08-09 newsletters, which are chock-full of hard hitting analysis (and the occasional picture with Bill Frist):

I was told that young people don’t watch television because shows they want to see are streamed on the web. Further, radio is boring and homogenized so it’s out, in favor of MP3 players like the ipod. Hold on to your hat. The times they are a’changin’. [sic]

It may seem harmless because Rick has the good sense to avoid making predictions that would come back to bite him in the ass, but the Town Crier has nonetheless followed the footsteps of the major news outlets and lent a authoritative forum to people who don’t deserve one.  This is dangerous, because most media consumers (even sophisticated Los Altos residents with experience playing mini-economy) don’t know that the people on tv give systematically bad advice.  There are experts out there, but their services aren’t free.

Glaze is nice to try and teach readers something about mortgage bonds, but he ought to start with portfolio theory and the efficient markets hypothesis (which would be familiar to SleazE).  Since he won’t (because no one would pay for his advice any more), I am suggesting to NOE that we do so here.  An NOE Finance Primer!  …coming soon?

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