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GARCH and its variants is one of the most traditional methods. There are many others.

D-OH! Have you forgotten what year this is? They're resigning en masse, 'cause they want to enjoy their last few months on this Earth... 21 December 2012, my (wo)man! Are you gonna be there with me, at the end time, holding my hand?

It's the usual macro-prudential + moral suasion stuff that CBs all over the world have been coming up with. Like limits on leverage for bank balance sheets, hard limits on LTV for mtges, more stringent collateral requirements and higher provisions for loans, that sorta thing.

Macro Man had a post on China today: http://macro-man.blogspot.co.uk/2012/03/berlitz-china-pocket-guide.html

Well, I never argued that Russia can do all this without the "rivers of blood and years of darkness". That is precisely what has been happening since the 90s. Neither am I suggesting that it's all guaranteed to succeed. However, I don't see any reason to assume that Russia will forever remain...

Your initial statement is inaccurate and your articles are woefully out of date...

I am not accusing anyone of anything. I couldn't give a rat's ass if you have Mongol, Arab, Berber or frigging Bantu blood. Moreover, who cares of whether Russians are European, Asian or whatever? Amen to that...

Let's not forget the Mongol blood, which, I presume, runs through the veins of a lot of ethnic Russians. I guess some Russians weren't as good at hiding their daughters as others, when the Golden Horde rolled into town. And then the 300 years of Mongol rule, to add insult to injury.

I wouldn't really call Russian society xenophobic, personally. It's racist and yes, there are all sorts of issues. However, this, yet again, is a complicated story. At least a part of this xenophobia and racism is a legacy of the past, which has been changing, slowly but surely. As to how...

Well, I see no reason to assume that Russia will always necessarily be what it is today. The changes that the country has gone through since the 90s are truly astonishing and there's no reason to believe that they stop. I confess to being somewhat biased, but I don't think one should write...

So you systematically short strangles and then delta-hedge only when you cross the strike? That's a recipe to get properly chopped every which way...

I am aware of all of this, thanks... I am being intentionally provocative.

Well, in order to preserve whatever is left of your good opinion of me, let's just agree to disagree on this, shall we?

You're being utterly silly if you imagine that the founding fathers were these unyielding stubborn fools who existed in the world of high-faluting principles and rigid moral standards. I mean didn't you quote Alexander Hamilton earlier? What about the bitter disagreements between Hamilton, on...

+1 IMHO, gold is an asset that hedges tail risk (note its option-like characteristics, such as negative cost of carry). It's like being long a very wide strangle, which, in small quantities, isn't a bad thing. However, to load the boat full of this sort of extreme optionality is a bit...

I didn't really drop the PPP concept here, tbh... It's just a handy way to harmonize historical data, nothing more. As to my conclusions, I dunno... I suppose I am suggesting that there's a certain historical inevitability in what we're witnessing. You could view current developments as...

It's governed by the concept of beta (not the same beta as equities, but similar idea)... Why don't you do some simple maths yourself? Look at the Fed H.15 historical data here: http://www.federalreserve.gov/releases/h15/data.htm Look at the performance of, for example, the 10y TIPS vs the...

Huh? I am not sure I see the point here, jem... If the founding fathers had such unshakable faith in their own infallibility, why does the Constitution contain Article V? How many Amendments to the Constitution are there and why? In general, quoting the various founding fathers is kinda...

God Save the Queen! What a fantastic plan! My only disagreement is with the whole notion of nations like USA, Canada and Australia being civilized. Such a quaint idea! These Yanks, Aussies and, what's that other place called, are real savages. Britain must bring true civilization, such as...

Huh? Yet again, achilles, I really don't see how you're able to make these sweeping generalizations. Europe isn't just Greece and France, you know? It's also countries like Germany, which has had reasonable social programs for decades and seems to be doing better than pretty much anyone else...