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David Tepper Presents The Core Tenets Of Bailoutism

Tyler Durden's picture





 

Recently, the most trendy (not to mention profitable) socio-political class is not that of capitalists, socialists, communists or even fascists (despite what some would claim), but that of the "bailoutists": those enlightened individuals who have bet everything on black, when black is the certainty that global governments will stop at nothing to, well, bail out the worst of the worst (to an extent explaining the continued outperformance of the worst stocks compared to quality names, a fact which as we predicted a year ago will make traditional long-short investing obsolete). For the full agenda of what a bailoutist believes in, we present today's follow up David Tepper interview with CNBC. In it, in addition to explaining what the creme of the crop of today's hedge fund world sees as the upside in a bailout driven world, the Appaloosa manager touches on such things as his market target for 2011 (S&P earnings of over 100 and a P/E multiple of 15, you do the math), corporate efficiency (the realization that companies can get away with much more, by firing many, and paying the remaining far less), the reasons for his caution (not many, though certainly the balls and the wall made legendary from his prior interview have no certainly diverged), but mostly why the same investment strategy that worked in the past (the central bank cartel rescuing everyone and everything) should continue to work indefinitely. And why shouldn't it: with taxpayers around the world apparently ok with transferring their wealth to the oligarchy in the form of a record steep yield curve, an unrepayable debt load, and increasing inflation, governments and bankers have a carte blanche to do as they see fit. And last, say what you will about the tenets of bailoutism... at least it's an ethos.

Part 1: where he discussed his recent charitable activity:

 

Part 2: where he drops the humanitarian facade and actually talks about what people came to hear him say.

 


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Fri, 01/21/2011 - 11:19 | Link to Comment TraderMark
TraderMark's picture

Yeah this is only the food bank part.  I loved it when Joe at the end of the inteview (30 minutes later) said to Tepper, you can fund the food bank for the next 10,000 years alone.... why the fund raising stuff? 

I think CNBC is holding the main video so that I am forced to his refresh on the video screen a thousand times.

Fri, 01/21/2011 - 11:27 | Link to Comment Malcolm Tucker
Malcolm Tucker's picture


This guy sounds better than CNBS's Joe :)

Here is a profanity laced tirade by Joe Rogan (of UFC fame) on the American war machine:

http://fedupmontrealer.blogspot.com/2011/01/joe-rogan-on-american-war-machine.html

 

Fri, 01/21/2011 - 13:49 | Link to Comment percolator
percolator's picture

Mr. Rogan is right on, thanks for the link. 

Fri, 01/21/2011 - 11:39 | Link to Comment Pladizow
Pladizow's picture

Capitalism will always exist, because socialism will always be around to bail it out. - Margaret Thatcher????

Fri, 01/21/2011 - 14:14 | Link to Comment rocker
rocker's picture

Kermit to Carl during the Bailouts, "Bailing out the banks is all good."

Did anyone notice Kermit snarling at Tepper when Tep would not stop talking about how the jobs will never come back.

Tepper said it could take 10, 15, maybe 25 years and Kermit was frothing.  America is Fucked. Confirmation confirmed today.

Fri, 01/21/2011 - 12:02 | Link to Comment Calculated_Risk
Calculated_Risk's picture

"why the fund raising stuff?"

 

At the beginning of his interview (second segment I think, may not be on this video), he said "we make a lot of money doing it". It referring to feeding the poor. He said it.. and you could see that he didn't mean to say it. It happened very quickly, so if you're not paying attention it would have slipped by. They may have not posted the video.

Fri, 01/21/2011 - 12:13 | Link to Comment The Limerick King
The Limerick King's picture

Tepper is clearly a knob

A Kleptocrat doing his job

But don't let him fool ya

Or else he will rule ya

Your wealth he continues to rob

Fri, 01/21/2011 - 12:59 | Link to Comment Hedgetard55
Hedgetard55's picture

Banksters and hedgies would make a nice dinner for the Nile crocs at the Bronx Zoo, a la "Land of the Pharoahs". The end is cool too.

 

http://www.youtube.com/watch?v=V2cT4vEw98o

Fri, 01/21/2011 - 17:29 | Link to Comment AnAnonymous
AnAnonymous's picture

A Kleptocrat doing his job

 

I am always stunned by people who must invent neologisms for already existing concepts.

Bailoutist? While kleptocrat exist?

More accurate: this guy is simply a proponent of the Natural Order the US vilified two centuries ago.

No requirement for new words, the old ones do the trick.

By the way, the guy who observed that revolutions always bring you back to the starting  point had it right. 

Fri, 01/21/2011 - 11:21 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

Not bailing out corporate entities that infuse a globalist class of stockholders with wealth, is thoroughly, un, american.

Fri, 01/21/2011 - 11:29 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

I'm sure he's going to make a lot of jobs in China making boot leg Boeing 787z. Once again Obama picks a real winner.

 

Fri, 01/21/2011 - 11:52 | Link to Comment NOTW777
NOTW777's picture

the MSM was touting obamas accomplishments with china and boeing contract the other day but a few days later BA announces the layoff of 1100 american workers and MSM is missing in action

http://www.bizjournals.com/phoenix/news/2011/01/20/boeing-c-17-layoffs-t...

Fri, 01/21/2011 - 12:14 | Link to Comment spekulatn
Fri, 01/21/2011 - 11:24 | Link to Comment Caviar Emptor
Caviar Emptor's picture

The self-sustaining cycle: politicians everywhere enrich themselves and their friends through the bailout cycle. Expect more of the same, with the exception of bailing out states, pensions and municipalities. That gets trimmed. 

Fri, 01/21/2011 - 11:24 | Link to Comment alexwest
alexwest's picture

most disgusting thing i ever saw..

asshole billioner++ few well paid corp 'hoz' millioners laughing and giggling about t-shirts w/ name 'FOOD BANK FOR POOR' and same time +40 mln on food stamps..

no wonder eventualy some ' Loughner' guys take justice into own hands
alx

Fri, 01/21/2011 - 11:33 | Link to Comment spekulatn
Fri, 01/21/2011 - 11:45 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

yep +1

Fri, 01/21/2011 - 12:01 | Link to Comment TraderMark
TraderMark's picture

I would recommend a read of the Atlantic's "The Rise of the New Global Elite" to understand why these people feel like this.  I used to wonder as well "how can they sleep at night" or "don't they feel guilty" but this article explained why the Davos set lives in an alternative universe and since many created their own wealth they feel as anyone who complains is more or less a slacker.  It was an eye opener.

 

http://www.theatlantic.com/magazine/archive/2011/01/the-rise-of-the-new-...

Fri, 01/21/2011 - 12:20 | Link to Comment lynnybee
lynnybee's picture

TraderMark ... thank you for that ATLANTIC article, RISE of the NEW GLOBAL ELITE !  ....... this is why reading the comments is so important .

Fri, 01/21/2011 - 12:23 | Link to Comment spekulatn
spekulatn's picture

I read this piece when it came out and I agree with you TraderMark...it opens the eyes....but then I thought more about it and the source and the bitch who wrote it and ........well you probably get where I'm going:

All bullshit.

DB read it too and here is a much better critique than I :

http://www.thedailybell.com/1661/Necessity-of-the-Plutocracy.html

Fri, 01/21/2011 - 15:53 | Link to Comment downrodeo
downrodeo's picture

I fell off my chair when I read that Alan Greenspan is an 'iconic libertarian'. I always thought he was a neo-con. It's good to set the record straight... 

Fri, 01/21/2011 - 12:12 | Link to Comment bania
bania's picture

yes, it is disgusting when a rigged system shifts capital into a concentrated few who then parade their 'philanthropy' to the masses.  true philanthropists are the ones who fight for integrity into our financial, economic and political systems because in the end an honest system distributes capital much more evenly.  The act of purchasing even one ounce of gold or silver is a greater act of philanthropy than what this gentleman pretends to be doing.

 

Fri, 01/21/2011 - 11:24 | Link to Comment Don Birnam
Don Birnam's picture

And where does the Federal Reserve store all of these freshly created dollars -- in a place where they shall remain as fragrant and crisp as the day they were cut from their sheets at the Bureau of Engraving and Printing ?

Why, in Tepperware, of course.

Fri, 01/21/2011 - 11:25 | Link to Comment NOTW777
NOTW777's picture

AAPL red - finerman bot yesterday

this is a stealth sell day

Fri, 01/21/2011 - 12:00 | Link to Comment NOTW777
NOTW777's picture

excellent day to lighten up on longs

GOOG fading, AAPL red and the tv happy talk is out of control

Fri, 01/21/2011 - 11:25 | Link to Comment Slartibartfast
Slartibartfast's picture

Feudal Capitalism. Concentrate wealth for the preservation of a very narrow class who are allowed to lobby for exemptions from any law that effects their bottom line.

Fri, 01/21/2011 - 11:43 | Link to Comment Beatscape
Beatscape's picture

+ 10.  Love your Avatar!  Always been a big fan of XTC, and that cover of Drums and Wires is great.

Fri, 01/21/2011 - 12:16 | Link to Comment Slartibartfast
Slartibartfast's picture

Thx...It was that or 'English Settlement'. What a great band!

Fri, 01/21/2011 - 12:25 | Link to Comment Gimp
Gimp's picture

XTC is a great band, one of my favorites - Dear God - vid below:

http://www.youtube.com/watch?v=hk41Gbjljfo

Fri, 01/21/2011 - 11:52 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Feudal Capitalism. Concentrate wealth for the preservation of a very narrow class who are allowed to lobby for exemptions from any law that effects their bottom line.

So it's like Orwell's 'Animal Farm,' then?

 

'Muriel,' she said, 'read me the Fourth Commandment. Does it not say something about never sleeping in a bed?'

With some difficulty Muriel spelt it out.

'It says, 'No animal shall sleep in a bed with sheets,'' she announced finally.

Curiously enough, Clover had not remembered that the Fourth Commandment mentioned sheets; but as it was there on the wall, it must have done so. And Squealer, who happened to be passing at this moment, attended by two or three dogs, was able to put the whole matter in its proper perspective.

'You have heard then, comrades,' he said, 'that we pigs now sleep in the beds of the farmhouse? And why not? You did not suppose, surely, that there was ever a ruling against beds? A bed merely means a place to sleep in. A pile of straw in a stall is a bed, properly regarded. The rule was against sheets, which are a human invention. We have removed the sheets from the farmhouse beds, and sleep between blankets. And very comfortable beds they are too! But not more comfortable than we need, I can t ell you, comrades, with all the brainwork we have to do nowadays. You would not rob us of our repose, would you, comrades? You would not have us too tired to carry out our duties? Surely none of you wishes to see Jones back?'

The animals reassured him on this point immediately, and no more was said about the pigs sleeping in the farmhouse beds. And when, some days afterwards, it was announced that from now on the pigs would get up an hour later in the mornings than the other animals, no complaint was made about that either.'

Fri, 01/21/2011 - 12:24 | Link to Comment Slartibartfast
Slartibartfast's picture

An Excellent Example of Excruciating Exceptionalism.

I've been re-reading Adam Smith and it's sad how far we've strayed. Democracy has been hijacked by 'Le Classe Sterile', which used to be the monarchy or feudal lord...now it's just another self-appointed economic elite. Ultimately the middle class will decide the limits of economic tolerance....that is if there's nothing on tv that night!

Fri, 01/21/2011 - 14:38 | Link to Comment Audible
Audible's picture

Ooo shiny object

Fri, 01/21/2011 - 11:34 | Link to Comment Mercury
Mercury's picture

Somewhat in Tepper's defense I think he presented a very likely outcome or at least one that a lot of powerful people are pushing for.  In this respect he was pretty up-front and un-weasley about it.

-Some American jobs aren't ever coming back, or any one's like it. -American (based) corporations fight their way to impressive profitability in the world marketplace while the benefits thereof flow mostly to a top-tier corporate-financier class deeply under the covers with the government.  The government in turn extends welfare in one form or another to the bottom 20, 30, 40, 50% of society.  No mention of any plans to crate a small-business friendly environment or anything like that, just bread and circus.

That's why it's soooooo important for Tepper and others in his captain of industry position to keep those soup kitchens of his humming.  None of this lets-create-a-small-business-friendly-environment crap...just bread and circus for the masses.

Fri, 01/21/2011 - 11:34 | Link to Comment Alcoholic Nativ...
Alcoholic Native American's picture

They shut down the soup kitchen in my city! We don't even get soup kitchens anymore.  They used to serve soup in the mornings.  Now you gotta wait for the salvation army at 5:30.

Fri, 01/21/2011 - 12:01 | Link to Comment bania
bania's picture

My avatar makes me say this...

NO SOUP FOR YOU!

Fri, 01/21/2011 - 11:46 | Link to Comment Mercury
Mercury's picture

Ooops.  Pardon the double text paste job at the end there although Tepper really did try to drive that particular point home.  Think he's just a great guy who wants to give back or he's all too aware how the system is now rigged and perhaps a little bit worried about pitchforks and torches?  Maybe he'll bring back Boxing Day too.

Fri, 01/21/2011 - 11:58 | Link to Comment TraderMark
TraderMark's picture

+1

and I agree at least Tepper admits it, unlike the rest who tell us as long as you cut taxes for the Teppers it will be trickle on down.

Fri, 01/21/2011 - 11:27 | Link to Comment spekulatn
spekulatn's picture

Wow. 

Fri, 01/21/2011 - 11:28 | Link to Comment NOTW777
NOTW777's picture

they sure swept B of A under the carpet fast

Fri, 01/21/2011 - 11:28 | Link to Comment CapitalObserver
CapitalObserver's picture

Why I disagree with David Tepper http://bit.ly/hDG7aK

Fri, 01/21/2011 - 11:41 | Link to Comment TruthInSunshine
TruthInSunshine's picture

There will be a political war, and maybe some violence, between those supporting bailouts of state and local government, and those opposing such measures, and here is why:

Imagine a state, county or city that has hiked property taxes by 50% to 200%, hiked sales taxes, business taxes, personal property taxes, gasoline taxes, sin taxes (cigarrette, alcohol, gambling), state (and city?) income taxes, service-permit-license fees, toll road fees, etc. by equivalent amounts...

...now imagine the obliterated businesses in the area and the empty homes (emptier than now).

Where is the money going to come from when everyone flees, and the old, the poor and the disabled are left behind?

You are going to see a shit storm between supporters of austerity and most of the productive members of society who support that rational viewpoint, and those pining for bailouts through government interventionism (which is just another form of more taxation) or hiking taxes and fees on services-permits-licenses to the point where they crush consumers and businesses alike.

We're either going to see the continuation of public sector unions with strength, with members retiring on full pension at 50 or 54, and getting COLA adjustments to salaries, and bennies for life for them and their spouse, while businesses continue to decline, or there is going to be a dramatic change in order to save businesses and consumers.

If the former takes hold, then it all fails anyways, as there aren't going to be enough businesses or residents with financial means to support the government taxes/fees anymore.

Caviar Emptor has said, again, 'woe are the states and local units of government, as the big banks got bailed out via the Fed, but the states and local units get no such love.'

Pick your poison, I guess. Or maybe, why stop now? Bailouts for everyone, consequences be damned? Caviar in every pot?

This is why TARP was so destructive. It has led to the creation of a truly metastatic, cancerous,  mindset. No one will bear any fiscal responsibility, ever again - that expectation is too high, and besides, we can paper over everything and businesses and residents won't know the difference between living under a fiscally sound unit of government, or an insane one - good luck on that, as you turn into Camden or Detroit, and kill off whatever remaining base of any business activity you once had.

 

Fri, 01/21/2011 - 11:32 | Link to Comment dabullify
dabullify's picture

You know, even if this guy was right for the past 60 days, I just can't bear to watch this arrogant cock sucker crowing to these idiots about how fucking smart he was. I'd love to smack that smirk right off of his face just on general principles.

Fri, 01/21/2011 - 11:40 | Link to Comment spekulatn
spekulatn's picture

Well said dabullify.

Fri, 01/21/2011 - 11:33 | Link to Comment TraderMark
TraderMark's picture

Here is the 2nd part (17 minutes) where he talks about economics and investing

 

http://bit.ly/f2i17F

Fri, 01/21/2011 - 11:37 | Link to Comment spekulatn
spekulatn's picture

Anything in there about sucking off the fed to make your month/year?

 

Fri, 01/21/2011 - 12:02 | Link to Comment TraderMark
TraderMark's picture

That's just implied. You don't talk about fight club.

Fri, 01/21/2011 - 12:29 | Link to Comment spekulatn
spekulatn's picture

Well said.

Fri, 01/21/2011 - 11:37 | Link to Comment Oh regional Indian
Oh regional Indian's picture

TV is an amazing medium.

The medium is the message. The messenger is the message. 

The message itself is whatever they want you to believe it is.

Masterful social engineering tool. 

Nvts!

ORI

http://aadivaahan.wordpress.com/2011/01/21/accidental-lives/

Fri, 01/21/2011 - 11:38 | Link to Comment Cdad
Cdad's picture

Tyler,

Wow...although that paragraph was way too long, you really summed up the problem with that interview.  Namely, it happened, and those things were, in fact, implied.  And strangely, no one involved with the interview even paused to wonder if this continued economic theft and terrorism should continue...meaning that they are so far gone down the cosmic bunny hole of the cosmic Fed, that they do not even consider that people have arrived at a place where this all must end.

Now I am quite sure there are many folk out there that know...when a blind side this wide is broadcast, contrary things happen...as a matter of course.

This will get ugly.  I think it will get ugly sooner than I ever thought.  These rallies that we see, driven by this or that ETF...computerized buying...rotation...it is going nowhere.  Again, in order for the oligarchs to continue, the dollar has to be destroyed...or they need real capital to form up again.  Neither of those solutions can work at the present time...under the current circumstances.

Fri, 01/21/2011 - 11:58 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

Well said. Even if Tepper feels like you how could he open up like that? I'm not sure he's intellectually honest enough, or maybe not even intelligent enough, to see the shitstorm that's brewing.

Got to keep the balls in the air bra-not to the wall

Fri, 01/21/2011 - 12:16 | Link to Comment Cdad
Cdad's picture

Say what you want about this subject or D. Tepper.  However, he is clearly NOT an intelligent fellow.  That would not be his strong suit.  Not that he needs to be in his profession.  Many of these criminal syndicate Wall Street bankers and fund managers are dumb as rocks.  Intelligence is not the required skill set.  The banker skill set is actually the same as the used car dealer skill set, if you know what I mean.

Fri, 01/21/2011 - 12:31 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

Put another way, he's either a liar or a dumbass, neither of which is a becoming characteristic in a man running money.

Fri, 01/21/2011 - 11:41 | Link to Comment the not so migh...
the not so mighty maximiza's picture

what a pick up line.  "Babe I am a bailoutist"

Fri, 01/21/2011 - 11:44 | Link to Comment DoctoRx
DoctoRx's picture

I believe his return to investors in 2010 was several pts worse than a buy and hold of Au bullion.

Let's see.  Last time economy appeared to surge around the peak of the bubble, just what happened to gold and oil prices?  

So even if he's right about the SPY (and who knows, maybe Dow 360K is coming and will buy X loaves of bread) - PMs/oil may well do even better.  

Fri, 01/21/2011 - 11:47 | Link to Comment Internet Tough Guy
Internet Tough Guy's picture

Nice lebowski reference.

Fri, 01/21/2011 - 11:50 | Link to Comment Gimp
Gimp's picture

Okay, if I get money/credit for zero interest and push up the market with the other PD's I will make money..

For all the job loss and hardship these greedy bastards  have caused, lets donates a tiny portion of the gains to the local food bank...and BTW the jobs ain't coming back because it is  more profitable for us to use slave labor overseas.

Not quite back to the NEW Feudal system but coming soon..

 

Fri, 01/21/2011 - 11:52 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

Why would Tepper go on national TV and talk about black swans (of which there seem to be gathering flocks)? Maybe he can't even see them. Why would he even talk about nascent problems with his own investors? There's no 20% to scrape if he's all in t-bills. He's not needed for that.

Fri, 01/21/2011 - 12:00 | Link to Comment meatball
meatball's picture

Say what you want about the guy but he's been right. The only point of being in the stock market is to make money, isn't it? I could only wish I went balls to the walls in March 2009.

Fri, 01/21/2011 - 12:10 | Link to Comment Gimp
Gimp's picture

When you have insider information and favored status it is hard to be wrong.

Fri, 01/21/2011 - 12:12 | Link to Comment bankonzhongguo
bankonzhongguo's picture

The way Tepper is being put out there, he's the next Krugman.

Expect to see this former GS shill over and over again - fighting for an appointment from the Politburo.

As a microcosm of his (American) economic success, check out his personal vaulted success a la all things Pittsburgh and the slow demise of that state. 

As goes Tepper/Pennsylvania so goes America.  I think that sums it up.

He co-owns the Steelers (that's a pun).

Fri, 01/21/2011 - 12:15 | Link to Comment Dr. Engali
Dr. Engali's picture

To what blog is Kernan referring when he says"that blogs a joke"?

Fri, 01/21/2011 - 12:28 | Link to Comment Salinger
Salinger's picture

who cares Kernan is a clown

 

CNBS did its job and for their effots that other bailoutist is off to DC to ensure continuity of the admins economic policies

Fri, 01/21/2011 - 12:24 | Link to Comment TruthInSunshine
TruthInSunshine's picture

I wonder how easy it would be to make infinity if a little bird landed on my shoulder and told me the Fed was/wasn't going to start a program called TARP, buying hundreds of billions in distressed assets, before the Fed announced it.

Hmmm.

Fri, 01/21/2011 - 12:25 | Link to Comment 6 String
6 String's picture

The guy is a brilliant investor. What you have to understand about Tepper, Aapollasa in general, is they will change their positions in a friggin nano-second, and can make the HFT's look like chumps. They have pummeled Gold and Silver over the last ten years, his calls are better than ZH's in a heartbeat--sorry, still love ya though.

Here's the thing though, you have to understand the "game" he's playing. He keeps regulators and the "right" contacts on his side by talking America up, he keeps a wide rolodex for keeping the public spin positive. But one thing will be certain, if he's already cautious now, he will be short everything, cueing his best voice, should the Fed start to unwind and raise rates. He's not stupid. You don't put up 40% annualized returns forever and not know what you're doing.

I will say I understand the less than happy appetitie here for his total empathy for bailoutism. But remember, he's just playing the game. I've watched Aapollasa change positions and do 180 degree turns overnight.

They will do it again: mark my words, if his prediction comes true: raising rates at the "right time" they will put evertyhing--buy them, not write them. He knows this will put a steak into the heart of any growth junkies, he knows this will put tremendous strain on our national budget deficits. Again, he's no idiot: he understands that every 1% increase in the fed funds rate would be an extra $140 billion in interest payments (so much for the 2.5 trillion in 10 year cuts, right?).

He knows this crap and will act accordingly if the GOP, with the 2.5 trillion proposed package, were it actually implemented would wipe out America as we know it....

They will short. They have before. Give the guy some credit. Unless, of course, you're killing his 40% annualized 18 year returns: than feel free.

I keep warning ZH of the equity bash: with enough money printing, everything will go up.

Fri, 01/21/2011 - 12:25 | Link to Comment the grateful un...
the grateful unemployed's picture

anyone with knowledge of the Martingale system should appreciate the nuance here. The Martingale is a double down system, black or red, it doesn't matter. once you have a losing bet, you double down, and you keep doubling down until you win all the money you have lost, and you collect your winnings on the original ONE unit bet, and then you revert to one betting unit at a time, until such time as you lose again.

The Martingale doesn't work in real life because there is a house limit, and the wheel can remain irrational longer than you can remain solvent. The only personage which has unlimited funds is of course the house, and those they choose to extend credit to. However the house does not have unlimited funds. If no one is making a house busting bet on the other side of the table, their risk is minimal. The law of averages will prevent a major drawdown. However if someone wants to go toe to toe with the friends of the house, who have this endless credit line, things get interesting, but the house can raise the limit for one player, and not another. Its a casino, not a constitutional government. It certainly isn't a free market.

Hope you start to see why the markets are (deliberately) so irrational, and Fed is so secretive, because yes their thumb is on the wheel, their friends are playing on unlimited credit, and there is no room for any punter, or player to be in the game except to provide them with their incremental profits, (0 and double 00 are their hedges, in Europe their is only one green number, so you odds against you as a player are somewhat better) which add up by the way, and the reasons that while trees do not grow to the sky, casinos do. 

How does it fail? The Martingale system of Central Banking is like putting a casino in your church, your school, your bedroom, you can't escape it. They suck those quarters out of the tourists from Iowa whether the tourists stay home or not.The tourists can't get out of town. But without new tourists business suffers, there is no double left in the double down. They try gambling with the unborn, but the unborn pay no attention. Eventually one of their own turns on them, there is a great struggle, a new name appears on the casino the next day, the process begins anew.

Fri, 01/21/2011 - 12:33 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

Fortune's Formula: The Untold Story of the Scientific Betting System That Beat the Casinos and Wall Street

http://www.amazon.com/Fortunes-Formula-Scientific-Betting-Casinos/dp/0809045990/ref=sr_1_1?ie=UTF8&s=books&qid=1295627618&sr=8-1-catcorr#_

Fri, 01/21/2011 - 13:02 | Link to Comment the grateful un...
the grateful unemployed's picture

have used tenets of the Kelly system for years. The late Huey Mahl put it all together for horse players. The racetrack is a more efficient market than Wall Street by the way, even though the vigorish is quite a bit higher.

Fri, 01/21/2011 - 12:26 | Link to Comment MGA_1
MGA_1's picture

Pretty straighforward.  I think 2011 is gonna be not so bad - the one thing to watch will be inflation...

Fri, 01/21/2011 - 12:34 | Link to Comment Savonarola
Savonarola's picture

The next crash - the one where Tepper and his cohort cry for their mommies again - we ain't gonna bail you out.

Fri, 01/21/2011 - 12:38 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Bernanke, Geithner & Obama, or their replacements, may beg to differ with you.

They may try to cast it, paint it, portray it as something else, but the effects and intent will be the same...

...unless something fundamental and epic really does take place in Amerika (formerly 'America') between now and then.

Fri, 01/21/2011 - 12:38 | Link to Comment 6 String
6 String's picture

The next crash - the one where Tepper and his cohort cry for their mommies again - we ain't gonna bail you out.

There are some real nut jobs here that don't have a clue to what they're talking about. Why don't you do two seconds of research and look at Aappolosa's 13F BEOFRE the financial crash, Savonarola.

Man, there is propanganda everywhere you look. We definately have a cultural problem here in America--it's just the economics that will take us down.

Fri, 01/21/2011 - 21:37 | Link to Comment Savonarola
Savonarola's picture

Two things:

When Wall St et al were bailed out, they were ALL bailed out. It was a house of cards, totally interconnected and linked. If AIG were to go DOWN, others would go DOWN, which would cause others to go DOWN.

13F is filed quarterly. Just longs, no shorts. How informative.

Fri, 01/21/2011 - 13:10 | Link to Comment Logans_Run
Logans_Run's picture

In my view the presence of individuals like Tepper indicates that we are moving closer to the time of Revelation 18 when they will mourn the loss of all their wealth and everything that they have worked to achieve to control people. I believe that this is all playing out according to plan.

Fri, 01/21/2011 - 13:16 | Link to Comment 6 String
6 String's picture

n my view the presence of individuals like Tepper indicates that we are moving closer to the time of Revelation 18 when they will mourn the loss of all their wealth and everything that they have worked to achieve to control people. I believe that this is all playing out according to plan.

Another stupid post. And I'm not going to defend Tepper against dogma and idiocy becuase it looks like it might have to be a full time job. Tepper will not be mourning, trust me. when and if things turn to shit he will have already gone long short way before the Fourth Turning hits full speed....

It's clear: ZH needs to clarify their mistake on calling Tepper out for supposedly selling his financials after pumping them on T.V. which turned out to be patently false, and also clear up the fact that Tepper and Aapollasa didn't need bailout money: they just played the game AFTER the fed announced they were f'ing backstopping all the fucking banks. That's just good stewardship of capital, folks, from a shrewd money manager.

Absolutely nothing wrong with that except to all the jealousy freaks that can only dream about 40% CAGR.

Fri, 01/21/2011 - 13:46 | Link to Comment Cdad
Cdad's picture

6 string,

I don't know squat about no Fourth Turning, but I do know that the real problem in our financial system is the fact that legions of criminal syndicate Wall Street bankers think exactly like you, distorting the definition of words like good stewardship as they destroy everything around them.

After watching three decades of thoughts like yours become the norm, so to have I watched as capital has been mass misallocated time and again to create short term profitable circumstances for guys like D. Tepper.  Thus, when we finally arrived at the place when said bankers had gone too far [2008], their bailout became the betrayal of Average Joe...for that kind of thinking had failed, validating what I am trying to say to you just now, only to be pulled from its demise by MY MONEY!

You are wrong 6 string.  You are in the marjority per the financial services industry thinking...but you are no less wrong.  I suspect you suffer the same condition, as well...circumstantial morality and self absorption.

D. Tepper should be apologizing to his children for advancing his circumstances on the back of a currency destroying, bail out regime. D. Tepper and those like him, by the 10s of thousands, should retire immediately, take their ill-gotten gains, and strike out for other lands to arbitrage to death.

Fri, 01/21/2011 - 14:02 | Link to Comment 6 String
6 String's picture

Cdad,

I agree about the Wall Street bankers: they are scumsuckers and leitches on the backs of the real producing American people, generally. But Tepper is a money manager--a steward of OPM-and not a Wall Street banker. Tepper didn't ask for a bailout, Tepper didn't need a bailout: he played the bailout.

There is a very large difference there....I already summed up my belief that I understand the distaste for his it's okay bailoutism mentalilty. That i wholeheartedly disagree with Tepper and fully align with ZH on this point. I'm generally in total agreement with ZH, it's why i'm here.

But Tepper has stood honorably by his investors: making them outsized returns by simply playing the game. Now, if you own Gold or Silver, you are simply playing the same game: financial protection. And i don't see anything sinister about that either. There is propandga on both sides of the coin: but at the end of the day it's about saving as many people as possible from the financial tyranny. And that is exactly, mark my words, what tepper will ultimately do at the end of the day.

Trust me, he says one thing: but will quicly do another to protect his investors. That is good stewardhip and he has hardly destroyed everything around him--that is just more reckless and useless propaganda.

You need to look no further than Wall Steet for that: and that, I can wholeheartedly back.

 

Fri, 01/21/2011 - 14:23 | Link to Comment Cdad
Cdad's picture

Trust me, he says one thing: but will quicly do another to protect his investors. That is good stewardhip and he has hardly destroyed everything around him

Thank you for making my point.  I assure you, 6 string, that as part of his strategy to make money from the bailout regime, he shorted the USD.  All institutional folk making money on the long side of this crony capitalist market shoot against our dollar as a way of making more of earnings from mega corporations.  This is problematic considering the Banana Ben Bernanke problem, don't you think?

Secondly, he most recently made a butt load of investor profits by owning bank shares [aka investing in the shares of companies involved in the greatest crime in the history of the world], and pumping those positions through the Blow Horn [CNBC] which is nothing short of an institutional propaganda machine.

Thirdly, he is a moron and an asshole.  Consider how shallow his charitable efforts are in light of what he and his have done to our economy.  Today's Blow Horn appearance was an image rebuilding appearance, buddy.

Fourth, thank you for proving to me, with your own words, just how situational your ethics are.  My guess is you would endorse anything that made you 5% today.  That is not who I am.  That is who The Street is.

This nation will not heal until someone turns a fire hose on Wall Street [and on Congress], sweeping out the majority of the folk who have destroyed Average Joe's trust in the markets and in our economic system.  D. Tepper will prevent more capital formation than he will engender over the next ten years.  In this opinion, I am confident.

Fri, 01/21/2011 - 14:38 | Link to Comment 6 String
6 String's picture

Cdad,

First point, yes it is a problem. Agree.

Second point, he played the game. Agree with you about his moral compass on the entire state of America and he's indeed either misinformed or an asshole on that front.

Third point, he not a moron but on the latter point agreed: he is an asshole.

Fourth, you are wrong. I wouldn't give a bank my capital if it were yours so thanks for trying to spin more propagnda in an otherwise good post.

And, I totally agree with you and with Bill Black. Until all the scumsuckers are tarred and feathered, hanged for all to see, we cannot heal as a country, which makes me conclude in your last thought as well: Tepper is not a creator, he is merely a steward of others capital. Here's his holdings BEFORE the bailouts:

http://www.sec.gov/Archives/edgar/data/1006438/000100643808000002/a13f08q1.txt

See? He played the game. But still agree with you: shame on him for injecting capital into the scumsuckers. But a moron in the sense of Alpha, he is not. I wouldn't sell out like him, trust me.

Fri, 01/21/2011 - 14:48 | Link to Comment 6 String
6 String's picture

By the way, who's the bigger dick? The one who played the game, ahem--Tepper, or the one who needed the bailout and continues to promote non-sense like Coca-Cola and Kraft:

http://www.sec.gov/Archives/edgar/data/1067983/000095013408015283/v42827ve13fvhr.txt

Just asking.

Fri, 01/21/2011 - 20:42 | Link to Comment Cdad
Cdad's picture

Listen up 6 string,

It is YOU that is trying to make the marginal argument...not me.  I am telling you that a fire hose is needed to truly fix the problem.  So go ahead and quibble about this sub point...or that.  You continue to prove my point with every freakin' dumb ass thing you post in response.

So go ahead.  You strike me as a man who belongs to the criminal syndicate Wall Street banking set...one trying to declare he is part of a subset that is innocent.  Wow.  What a powerful counter argument.

Carry on then.  Here is the rope you need.....

cdad

Fri, 01/21/2011 - 14:09 | Link to Comment Logans_Run
Logans_Run's picture

Believe what you will then! Oh, and thanks Cdad! Nice retort.

Fri, 01/21/2011 - 13:19 | Link to Comment Mydixie Wrecked
Mydixie Wrecked's picture

this is beyond tepper ass kissing by msm - the is outright ass licking

Fri, 01/21/2011 - 13:26 | Link to Comment Lord Peter Pipsqueak
Lord Peter Pipsqueak's picture

What a truly sickening piece of television.He pompously sits there spouting his drivel,while at the same time sating his conscience by stating he gives to the poor,the very poor the system he is profiting from has created, and continues to fleece every day of the week.Disgusting.

Fri, 01/21/2011 - 14:00 | Link to Comment Gimp
Gimp's picture

Lord Pipsqueak you are absolutely correct, the one thing the Peppers of the world have in common is they are sociopaths. Definition below:

so·ci·o·path

–noun Psychiatry . a person, as a psychopathic personality, whose behavior is antisocial and who lacks a sense of moral responsibility or social conscience. I think this definition sums them up very well. They pertend to care by donating to the local food bank .... double disgusting.

Fri, 01/21/2011 - 16:04 | Link to Comment TruthInSunshine
TruthInSunshine's picture

As I pointed out yesterday, Bernanke literally displays each and every characteristic of 'sociopath' from a purely psychiatric perspective.

Many people who rise to positions of great power and authority are textbook sociopaths, narcissists or paranoid, or an actual hybrid of any of these 3 personality types/disorders.

Nixon was clearly paranoid, Obama is clearly narcissistic, and Bernanke is clearly sociopathic.

I would add that all three were/are delusional, also, assuming that they actually believe even a small portion of their own words.

Fri, 01/21/2011 - 14:09 | Link to Comment Minyan Vince
Minyan Vince's picture

yall like my ceo interviewing DT...

Fri, 01/21/2011 - 14:31 | Link to Comment JR
JR's picture

Speaking of bailoutisms and Wall Street “entitlements,” here’s Nate’s take this morning on the CNN spin of Obama's appointment of GE’s CURRENT CEO, Jeff Immelt, to Chair a new White House Economic Advisory Council, the President's Council on Jobs and Competitiveness :

“It appears to me that the special interest takeover of the United States is just about complete.  Immelt took over GE from “Chainsaw” Jack Welch in the year 2000, then proceeded to run the company into a bankrupt condition largely by taking on far too much risk within GE Capital which made GE effectively a financial company that just also happens to make jet engines.  They couldn’t care less about making light bulbs or appliances, they were making subprime loans like crazy to every homeowner with a heartbeat and to every rag tag airline around the globe.  They got into derivatives, and then when their leverage turned on them, it bankrupted the company.  But instead of the rule of law (and the rule of nature) being allowed to run its course, Hank Paulson and the boys stepped in with billions to bail GE out.  Today they’re back to being a mark-to-fantasy Ponzi financial company reporting false profits just like the rest of the insolvent financials.  In fact, just this morning (coincidentally?) GE and Immelt reported stellar profits…

The spin in the talk and in the reporting is that orders and infrastructure grew…but that growth is anemic, especially when you consider that it is measured in dollars and that their revenue is WEAK.  So, where did profits really come from?... GE Capital whose profits jumped from $100 million to $1.1 BILLION!!!  That’s a one BILLION dollar jump in financial profits in one year!!  Can you say “Mark-to-Model?  I thought you could.  I can also say, “ACCOUNTING FRAUD.”  This on the back of hot money pouring in from the “Fed…”

I cannot think of a worse pick; this President continues to show that he is a President of the special interests and NOT OF THE PEOPLE.

They sell these appointments as if they are bringing economic “expertise” in to help the economy and to create jobs, but what they are really doing is accelerating the looting and the debasement of our money…”

http://economicedge.blogspot.com/

 

Here’s how Business Week spells out Immelt’s 2008 income:

TOTAL COMPENSATION in 2008
Total Annual Cash Compensation $3,300,000
Total Short Term Compensation $3,300,000
Other Long Term Compensation $7,233,137
Total Calculated Compensation $14,096,603

Fri, 01/21/2011 - 14:39 | Link to Comment Cdad
Cdad's picture

This...for a company that was bailed out by tax payers.  Good grief.

And now we are supposed to celebrate Immelt's arrival in DC.  Good grief. 

Our current leadership just does not understand how rotten all this stuff smells, and they continue to conduct business as if this is all  normal now...the New Normal.  It is NOT NORMAL!  This stuff MUST END!

CAPITAL WILL NOT FORM IN BANKS AS CORRUPT AS OURS, OR POLITICAL CIRCLES AS DUMB AS OURS!

Fri, 01/21/2011 - 23:20 | Link to Comment 6 String
6 String's picture

@cDad

Your mind is a raging inferno of contradictions, while you spew total hatred with virtually no contructive criticism whatsoever on how to solve the fucking money problem, pal. You are a whiner and a loser.

Let me guess, you are so much different than a jackass like Tepper because you have bestowed on yourself the blessing of Gold because it represents a a anti-establishment quality. And when you are right, you will be....ask yourself how much different you are than that beast of an asshole Tepper for getting rich at the consequence to million of sheeple you pissant; all because of the dumbasses at the Federal Reserve. Seriously you dumbshit, just exactly how does that make you sooooo different than Tepper? You called him a moron and an asshole: I can say the exact same thing about your pathetic investment positioning.

You know nothing and you have verified my every thought about you being a two-bit senseless hack that is nothing more than a dipshit on ice, pal.

You are indeed a walking, talking idiotic fully aligned with contradiction only, that knows nothing other than propangda you little twit. You are part of the problem, not the solution: Never forget that you worthless miscreant.

6 string away, fool.

Sun, 01/23/2011 - 10:30 | Link to Comment Cdad
Cdad's picture

You, part of the criminal syndicated banking crowd, calling out MY contradictions?  Seriously.  I am not conflicted nor am I suffering contradictions.  My position is SHORT...and my solution is a thorough cleaning out of criminal syndicate Wall Street bankers everywhere, breakups of big banks, and a continued clearing house in Congress.  As for being different than D. Tepper...YES.  Hello?  I am selling what he is buying, buddy.

There is no contradiction in what I am saying or my positioning.  This is my solution because there is no other solution...none that will once again create capital formation...which is what is missing in the market right now.  Why do you think Ben Bernanke is counterfeiting?

It is you trying to defend this criminal syndicate Wall Street fund manager and his shameless ride on the back of dollar destruction, Benanke counterfeiting, and DC incompetance.  It is you taking that position.

Sun, 01/23/2011 - 12:01 | Link to Comment 6 String
6 String's picture

You, part of the criminal syndicated banking crowd

Every time you speak, you further strengthen the argument that you are merely an intellectual ant. You do, however, excel at proganda. You should run for Congress, we really don't get enough bullshit like this yet....

Shorting everything is certainly the answer to all the problems in America, ding-dong. That will certainly reset the system in orderly amusement for millions of innocent bystanders in the banking cartel--fascist seizure.

Do you yourself a favor, Google Bill Black and do some reading. He has viable answers to the banking/Wall Street syndicate. But you? LOL

 

 

 

Sun, 01/23/2011 - 14:16 | Link to Comment Cdad
Cdad's picture

Well, I see.  You are not at all reading what I am writing, but instead initiating a campaign of insults.  Great.  Where are you going with this, 6 string? 

Hint:  if you are going to condemn what I am saying, you should first read it.  Then, if you disagree, state the point on which you disagree.  Otherwise, you sound like what you are....and clearly so.

The system will be purged, now or later, after great suffering or less suffering.  Two years now [and counting] and still capital is not returning to the market.  The situation speaks for itself.  I don't need Bill Black to tell me anything on this subject.  You need only look around to be inescapably confronted with it.  You need only watch a brief segment of someone like D. Tepper talking to understand what needs to happen next. 

Do NOT follow this link or you will be banned from the site!