Kristen wrote:Wow, the federal reserve has many charts, too bad i dont understand them
that, i think, qualifies you as an EXPERT.
seriously. well, half-seriously.
almost everybody here started out wondering, "what does this non-borrowed reserves curve mean ? what do mortgage-backed securities & credit derivatives have to do with the current economic contraction ?"
i asked a stock-broker who swims at the same community pool as me. he deferred the answer (about credit derivatives) by saying, "i don't know. i just trust the experts."
i asked my brother, who is a VP at Morgan Stanley & has not been in a great mood lately. his first response, when i broached the subject of Peak Oil, "why are you so full of bad news ?"
his second response, when i asked him "how much of the losses associated with the banking problems have already been booked ?" was, "that's a very good question".
as far as real experts, there's -
* Satyajit Das, who wrote some of the primary texts on credit derivatives.
* Nouriel Roubini
* Chris Martenson (crash course)
* John Williams (shadowstats)
you can pick up bits & pieces from more conventional financial writers like John Mauldin
http://www.investorsinsight.com/
and Jim Puplava
http://www.financialsense.com/
i think one of the best approaches to understanding this is to have a friend who is interested so you can talk about it.
also, a willingness to trust your own common sense helps.
like, "how can the US keep borrowing money from the rest of the world ? what happens when China & Saudi Arabia decrease their purchases of US debt instruments ?"