“Beware of the rally” says Henry’s “Lexington” from Washington.

Henry’s Lex had two long weekend conversations with former Merrill Lynch colleagues both still very much involved as respectively partners in a hedge fund of funds and a fixed income money manager specialising in leveraged investing in tax-free municipal bonds (“munies”.)

One friend stated in 35 years “He had never seen fixed income markets more distressed”.

The “Quant” teams are working this weekend modelling downside scenarios for “vulture” distressed fixed income securities but he stresses further downside and turmoil will occur.

Aboriginal Australia

What should we do about Australia’s Aboriginals? Almost 50 years ago, Henry was a young economist visiting the University of Chicago.

The question was asked of a famous professor of anthropology, whose name Henry has forgotten – but that’s cool, he was old even then and is sure to be dead by now.

“I’ve worked a lot with the Inuit”, the professor replied. “The message is simple. Unless and until your Aboriginals make demands, that you can debate and meet in part, there is no hope for them.”

Henry has interpreted the demands for land as an example of Aboriginal Australians staking their claims. But how does Mal Brough’s intervention fit this model?

Who knows, brothers and sisters? There is no simple answer, but The Australian seems set to have a red hot go at the issue. Take a look at this section of the online newspaper. (Available tomorrow in your better fish’n’chip shops). Naturally, Henry liked the footy story, by Nicholas Rothwell:

Once, the Warlpiri of the Western Desert were hunters and warriors. Now the young men of Yuendumu play football, but with their own brand of heroic intensity and effort, chronicled in loving detail in a new documentary, Aboriginal Rules, which screens next week on ABC television’s Message Stick.

The film traces the progress of the Yuendumu Magpies, the dominant team of the desert football competition. But, like all football movies, it is really about life and the dreams and disasters that lurk along the way”.

If only Caaaaarton! could snag some of the Yuendumu Magpies things would look better. Only one game to go for the Caaaaarton! Blues – hard to achieve an honourable loss (and maximise draft picks) against Melbourne next week, but the boys will be doing their best…

This has been written on Sunday night, as Henry is off to the deep north at sparrow’s f-rt. Any more interesting news will be commented on from the airport lounge, but the item below seems also to be a gem, hard to beat unless the US Air Force bombs Iran into the stone age overnight.

Read more at Henry Thornton