http://www.investmentpostcards.com/2010/01/26/jeremy-grantham-lessons-learned-from-the-past-decade/ Prieur du Plessis’s international investment blog Sun, 29 Jan 2012 22:06:48 +0000 hourly 1 http://wordpress.org/?v=3.1.1 http://www.investmentpostcards.com/2010/01/26/jeremy-grantham-lessons-learned-from-the-past-decade/comment-page-1/#comment-22537 dblwyo Tue, 26 Jan 2010 11:04:36 +0000 http://www.investmentpostcards.com/?p=16305#comment-22537 I strongly urge all your readers to dload and read, carefully, Jeremy's letter. Marvelous piece of work in general, very blunt and to the point and demonstrating a real sense of social responsibility. One area where, imho, he does fall victim slightly to his own critiques in arguing that the Fed was primarily responsible for the Housing Bubble and has learned no lessons. They did fail to enforce regulatory authorities under ideological influences but a)the interest rates pursued were exactly what should have been done if you follow some sort of modified Taylor Rule (cf. Macroblog's careful consideration of the issue a while back) and b) the infamous l.t. rate conundrum was more due to excess world savings which in reality was global trade imbalances combined with the very dysfunctions in the Finance Industry he criticizes so heavily and correctly. Aside from that little quirk a marvelous summary, lessons learned and outlook. I strongly urge all your readers to dload and read, carefully, Jeremy’s letter. Marvelous piece of work in general, very blunt and to the point and demonstrating a real sense of social responsibility.
One area where, imho, he does fall victim slightly to his own critiques in arguing that the Fed was primarily responsible for the Housing Bubble and has learned no lessons. They did fail to enforce regulatory authorities under ideological influences but a)the interest rates pursued were exactly what should have been done if you follow some sort of modified Taylor Rule (cf. Macroblog’s careful consideration of the issue a while back) and b) the infamous l.t. rate conundrum was more due to excess world savings which in reality was global trade imbalances combined with the very dysfunctions in the Finance Industry he criticizes so heavily and correctly. Aside from that little quirk a marvelous summary, lessons learned and outlook.

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