Friday, January 09, 2009
updating the risk appetite index
also of interest are a set of long-run comparisons that make clear the extreme environment we have faced and continue to face. what is happening in corporate bonds is really without parallel in this country since the great depression, although it almost certainly has other parallels in previous depressions such as 1873-79 and in other economies at times of depression. not that that provides much comfort.
also of interest are the ramps in real oil prices shown -- big spikes leading into 1873, 1877, 1893, 1921, 1974, 1981, and now 2008 all anticipated extremely difficult times.