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Majors Quotes

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Majors Quotes

“A popular feel for scientific endeavors should, if possible, be restored given the needs of the twenty-first century. This does not mean that every literature major should take a watered-down physics course or that a corporate lawyer should stay abreast of quantum mechanics. Rather, it means that an appreciation for the methods of science is a useful asset for a responsible citizenry. What science teaches us, very significantly, is the correlation between factual evidence and general theories, something well illustrated in Einstein's life.”

“That's been lost. It's a huge problem. What you have is you have the major institutions of the world all wanting to deleverage. They want to take down their assets and liabilities. What seemed so easy to borrow against a year ago now looks like rat poison to them. So they're trying to deleverage. There is only one institution in the world that can leverage up in a way that's all a countervailing force to that, and that's the United States Treasury.”

“There is no doubt that the Fed's large-scale asset purchases have caused major increases in a number of asset prices in the economy. This is especially true of mortgage backed securities and corporate bonds, and quite possibly of equities as well. For those people and institutions holding those things, the run up in prices has been a wealth bonanza.”

“Interest-rate swaps are a tool used by big cities, major corporations and sovereign governments to manage their debt, and the scale of their use is almost unimaginably massive. It's about a $379 trillion market, meaning that any manipulation would affect a pile of assets about 100 times the size of the United States federal budget.”