Dear John, offers
Thought some of you may be interested in Bill Gross' position.
Well prudence and rating agency standards change with the times, I suppose. What was chaste and AAA years ago may no longer be the case today. Our prim remembrance of Gidget going to Hawaii and hanging out with the beach boys seems to have been replaced in this case with an image of Heidi Fleiss setting up a floating brothel in Beverly Hills. AAA? You were wooed Mr. Moody’s and Mr. Poor’s by the makeup, those six-inch hooker heels, and a “tramp stamp.” Many of these good looking girls are not high-class assets worth 100 cents on the dollar. And sorry Ben, but derivatives are a two-edged sword. Yes, they diversify risk and direct it away from the banking system into the eventual hands of unknown buyers, but they multiply leverage like the Andromeda strain. When interest rates go up, the Petri dish turns from a benign experiment in financial engineering to a destructive virus because the cost of that leverage ultimately reduces the price of assets. Houses anyone?
Probably getting close to "Buy time"
Dear John, I like Bill, I tried to learn a lot from him, not often very successfully. Nor, do I think he is a great market timer, which my record will show to be far superior on his interest rate predictions. Still, I think he is a giant for many reasons. At least once previously he has been able to tell speak the truth when he said that "inflation was a lie". It seems like his comfortable position at PIMPO ( sorry meant PIMCO) was a bit at risk and he stopped and/or was stopped ha...
And also, did he borrow my line on HOOKER. You will be judge.
In my comments to JC few months ago I said "Market is like a good HOOKER showing the legs until all innocent are trapped. That is I suggested the reason it goes up slowly making records every day, so that the "attraction is bigger" as the leg gets partially unravelled till the lady is seen naked.
Good To hear from and all the jokes apart. Bill is finally speaking his mind again. Welcome back to Bill Gross, are vigilantes finally back
Good Trading
4 comments:
I doubt the "vigilantes" are back yet. The 50 yield volatility on the 10 year is about 12%. In 1980 through 82, when the vigilantes ruled, the yield vol was about 30%.
But we may get back there.
John
Dear John, let us give them time... You are right, we are not there yet, but we must begin. The end is where they finally will be back with the kind of numbers you display (: :)
good Trading
Yes we will get back there.
Dear Boris,did you noticed, yesterday afternoon when the VIX made a run up higher and liquidity inflows came in (from the FED?) at the same time. The result was that yesterday's S&P drop on an equivalent VIX move was less than half of what it should have been.
How long can/will the FED act as a shepher?
good trading and rgrds
Istvan
Dear Istvan, "nice Hungarian name". PPT ( plunge protection team) is able ready and willing to pump any amount of liquidity to keep the sham going. The financial industry is all USA/UKA have left to speak about. 30% or more of our GDP's is derived from shoving the papers from one bozo to another. Please do not assume, I like that much the finance, it is just I can not let the charlatans take over and stemngel everybody. People need us. While I enjoy the challenge of what I am doing and love people I help. I would rather be with my family more time and doing more normal things, but these are abnormal times where lot of people are aimlessly trapped by the charlatans of the world and I can not sit idle.
I appreciate everebody that learns and or contributes to this site.It means that our work is not futile.
Good trading
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