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Bonds, notes and bills

Bonds, notes and bills

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This was just perfect, for people who don't have a degree in Finance or economics. Its even better than reading Wikepedia.

I just watched your whiteboard on Bonds, Notes & Bills. One thing you mentioned there which has come up in other financial discussions is that people buy gold as a hedge against inflation so that they will not be left holding worthless pieces of paper. I’m left wondering why people are not concerned with being left holding worthless ingots of metal??? I can’t help but feel that the high price of gold (like diamonds) is almost as great a fiction as the value given to money and other related certificates.

Further more I suppose that most large gold transactions are actually just as much paper promises as all the rest. Therefore the belief that one can go to the “bank” and cash the certificates in for gold may be just as misplaced as the belief in AIG et al.

Please do a whiteboard on gold and why it is thought to be so much more dependable.

Great stuff. In a similar vein, I would like Paddy to also do a segment on the growing deficit as related to health care/social security outlays. How do versions of health care bills deal with future medicare government expenses and possible expenses. Also how the current operation definition of GDP figure into all this deficit/debt stuff as a measure of an economy's well being. I am unsure but, it appears if FY 2009 notes and interest only of 4.1 trillion deficit, up to 32% of budget- are we not going to have cut SS/Medicare expenses or increase taxes on some horizon. I need help understanding these treasury reports. What portion of US employment is based on the health care industry.

Paddy,
Any chance you could do a whiteboard explaining all the effects of the fall in the value of the dollar? It seems to be in the news a lot these days and could use some clarification.
Thanks,

Nicely done. I enjoyed it and learned something--besides the drinking thing (which I already knew about though personal experience.)

really cute, what he did with that chalk at the end. But did I need this to know that even the USA might go bust, leaving me broke? Uh, don't think so. And by the way, didn't he notice that gold wasn't worth much last year this time? No assets were worth as much as cash under the mattress; which I agree isn't a good investment strategy.
Now what would he do with that chalk if he'd explained, say, a yield curve?

This was really excellent - please more of the same! People make boneheaded judgements about their money primarily due to ignorance and this info goes a long way to helping to explain and fill the gap- Paddy Hirsch is a very good teacher.

Paddy Hirsch should seriously consider make a video lessons about Economics, Capital Markets and Finance in a clearly structured standard. This way he could educate lots of young minds. I certainly believe he knows how to monetize his content. Organizing your content on your website would be a good start and it's a no brainer.

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