Archive - Oct 11, 2011 - Blog entry

Ths U.S. tried not to "needlessly provoke" China on the F-16 deal to Taiwan, but is willing to go all out slapping the meritless Currency Bill on China's face.

I personally believe that there is no "free" alpha. That said, there is a way to earn returns that may look like alpha, especially if you are an astute student of human nature. You can make a bet when other people are behaving irrationally, as when you buy when there is blood in the street.

"I went to a boxing match and a hockey game broke out." --Rodney Dangerfield...."I went to a debate and a freak show broke out."--WilliamBanzai7

The Media Boycott Heats Up.

Anyway, the short story is that, after seeing the S&P fail at the 1,200 level 5 times in 8 weeks, we take the opportunity of another run-up to take a short position.

Nice try, mainstream media ...

Sarkozy and Merkel continue to make "plans" for what to do... The reality is all they're doing is playing for time while they prepare for a Greek default. Indeed, German officials recently told the Telegraph that a "hard" default for Greece is coming which will feature investors taking a 60% "haircut" on their investments in Greek bonds. 

The "powers that be" have lost control of the markets. Both the IMF and the Bank of England have warned we are facing a financial meltdown of historic proportions and possibly the worst ever in history. These are the very groups that are supposed to hold up the financial system... telling us that we're facing a "meltdown."

It's all code for German backstops, which begs the question: How exactly are things going for Germany?

All you need to read.