Following Major Losses, Norway Sovereign Wealth Fund Hits "Infinity" Pares Exposure To Greek Debt

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Mon, 06/13/2011 - 10:37 | 1364715 Mae Kadoodie
Mae Kadoodie's picture

An idiot says, what?

Mon, 06/13/2011 - 10:43 | 1364744 idea_hamster
idea_hamster's picture


Mon, 06/13/2011 - 13:56 | 1365291 MarketTruth
MarketTruth's picture

Barnum was right, one is born every minute in Norway.

Mon, 06/13/2011 - 14:04 | 1365315 GoinFawr
GoinFawr's picture

Well it must be by the millisecond in the US then:

Mon, 06/13/2011 - 14:40 | 1365441 friendly manitoba
friendly manitoba's picture

might have been  moral suasion and support by norway  - even i buy stuff that may not appreciate but has important consequences in making the world a better place  - a lot of greed in this world where you cant take it with you  -  i remember the day in 1929  j p morgan walked out on the floor and started buying .. doesnt make him a fool in my mind 

some of you posters are wound up pretty tight ...



Mon, 06/13/2011 - 16:47 | 1365748 Djirk
Djirk's picture

these guys bought US equities when everyone was running away with their tails between their legs....not sure if they took profits but they made a lot of paper profits on that call.

Mon, 06/13/2011 - 11:01 | 1364796 Manthong
Manthong's picture

An idiot says it's transitory.

Mon, 06/13/2011 - 11:47 | 1364914 Clayton Bigsby
Clayton Bigsby's picture

I've heard it said the definition of an "investor" is a trader who's underwater - guess these guys are "investors"

Mon, 06/13/2011 - 14:30 | 1365178 GoinFawr
GoinFawr's picture

heh, "underwater", you guys kill me. A whopping 3.4% loss on a portion of their portfolio and you guys are all over it like stink on shit.

You just can't stand to see a mixed economy doing so damn undeniably brilliantly, can you? For you, avoiding mirrors while jumping on any trivial negative news elsewhere is the way to go; oh yeah, definitely...(sarc)

Tylers, thanks for posting this and flushing out all the pigeons... anyone for squab?

Mon, 06/13/2011 - 13:53 | 1365276 Ying-Yang
Ying-Yang's picture

"At the end of the day", Infinity is sooooo Transitory

Mon, 06/13/2011 - 10:37 | 1364716 I am a Man I am...
I am a Man I am Forty's picture


Mon, 06/13/2011 - 10:58 | 1364789 TruthInSunshine
TruthInSunshine's picture

Anyone up for a game of Financial Weapon of Mass Destruction Dominos?

These are the special kind of dominos, each one containing derivative products that implicate many other derivative products.

Think of a waterfall of continuously falling razor blades - death by a thousand (or trillions of) papercuts...something along those lines.

Mon, 06/13/2011 - 13:31 | 1365214 GoinFawr
Mon, 06/13/2011 - 10:35 | 1364720 Bay of Pigs
Bay of Pigs's picture

One could say we are investing for infinity

Huh? That's a unique approach...

Mon, 06/13/2011 - 10:40 | 1364735 lizzy36
lizzy36's picture

One should remind these Sock Puppets that on a long enough timeline the survival rate for everybody drops to zero. #infinity

Mon, 06/13/2011 - 10:46 | 1364739 Fancy Bear
Fancy Bear's picture

Warren Buffet always said his favorite holding period is forever.

Mon, 06/13/2011 - 11:02 | 1364798 Mentaliusanything
Mentaliusanything's picture

Tell Buffet I have some Enron shares he can hold for ever (or wallpaper his toilet with)

Mon, 06/13/2011 - 13:45 | 1365260 knukles
knukles's picture

Thanks Fancy, for as I was reading the above piece, the phrase "investing for infinity" squared up philosophically and mathematically with the idea of default, of getting naught back.
Like the discounted present value of nothing and any discount rate (perhaps a negative number and therein we approach the extent of the QE efforts) is nothing for infinity.  Cute.
Or, not considering the interim value of an investment between now and infinity seemingly abrogates a considered state of social responsibility commonly enshrined in the law, referred to as "fiduciary responsibility."


Ah, the flimsy ruminations and justifications of the asset manager trapped in a loosing position, embalmed within his own poisonous ego.

Mon, 06/13/2011 - 10:35 | 1364721 williambanzai7
williambanzai7's picture

What a marooooooon--Bugs Bunny

Mon, 06/13/2011 - 11:16 | 1364807 Mercury
Mercury's picture

+1 !

Lots of financial comedy on display in that Ali Baba Bunny

Mon, 06/13/2011 - 10:40 | 1364725 carbonmutant
carbonmutant's picture
Little too much Akvavit...
Mon, 06/13/2011 - 10:42 | 1364728 Hedgetard55
Hedgetard55's picture

They should have at least 20% in precious metals, merely as insurance.


Norwegian krone is a solid currency, relative to
Euro and dollar.

Mon, 06/13/2011 - 11:49 | 1364910 uranian
uranian's picture

norway sold all of its gold in 2004:


feee faan. or something.

Mon, 06/13/2011 - 12:06 | 1364951 zaknick
zaknick's picture

The Norwegian elites are banksters to the core. Northern Norway is where the banksters have built the doomsday seed vault. The same ones who own the GMO monster. Why would they store all the different seeds of the world in a vault inside a mountain?

Mon, 06/13/2011 - 12:20 | 1364978 old naughty
old naughty's picture

...and under a sheet of ice, in case aircond malfunctioned!


FEMA N. of the 33 parallel.

Mon, 06/13/2011 - 13:06 | 1365145 uranian
uranian's picture

there's also the world's only other HAARP-type facility up there, EISCAT.

Mon, 06/13/2011 - 13:46 | 1365265 knukles
knukles's picture


Now, I have to ask myself, for WTF do the Norwegians want or need an upper atmospheric heater?

Ah hah!

Another one of those inexplicable coincidences.

Mon, 06/13/2011 - 13:11 | 1365148 Saxxon
Saxxon's picture

Sure, sell all gold and load up on PIIG debt.

A 25% loss in a fund like this is unconscionable.

Another nation whose beaurocrats are Eunuchs busy humping the pants leg of the ECB.

Mon, 06/13/2011 - 13:58 | 1365192 GoinFawr
GoinFawr's picture

Is it just me or did you just turn a 3.4% (current) loss on a portion of the fund into a 25% (unrecovered) loss on the whole shebang? Hocus pocus!

You want 'unconscionable'? Have a look at this:

Mon, 06/13/2011 - 10:57 | 1364729 hedgeless_horseman
hedgeless_horseman's picture

Perhaps it is a good thing nobody actually holds these gentlemen, or anybody else for that matter, accountable for the outright stupidity they tend to spout on way too many occasions.

Reminds me of this scene (I know, Sweden, Norway, same difference):

My dear friends, for 22 years, in the capacity of [Soveriegn Wealth Fund] manager, I've stood here and made a speech without really having any talent for that sort of thing. Especially if you think of my father who was brilliant at speeches. My only talent, if you can call it that in my case, is that I love this little world inside the thick walls of this [Soveriegn Wealth Fund], and I'm fond of the people who work in this little world. Outside is the big world, and sometimes the little world succeeds in reflecting the big one so that we understand it better. Or perhaps, we give the people who come here a chance to forget for a while, for a few short moments, the harsh world outside. Our [Soveriegn Wealth Fund] is a little room of orderliness, routine, care and love.                                             

                                              -Oscar Ekdahl

                                               Fanny and Alexander

                                               Directed by Ingmar Bergman

Mon, 06/13/2011 - 13:02 | 1365129 GoinFawr
GoinFawr's picture

If those Norwegians are 'stupid'

what does that make Americans? Vegetable matter?

Mon, 06/13/2011 - 10:42 | 1364741 Cthonic
Cthonic's picture

On a long enough timeline, you'll never reach infinity...  Zero cred, Mr. Slyngstad.

Mon, 06/13/2011 - 10:45 | 1364742 Mercury
Mercury's picture

Norway says its long-term perspective will protect it from losses.  One could say we are investing for infinity,

What the hell does that mean? - on a long enough time line the principal recovery rate for everyone rises to 100% ??

I don't think so.

Mon, 06/13/2011 - 10:52 | 1364752 plocequ1
plocequ1's picture

To find out what it means, You sometimes have to play it backwards like Revolution 9 from The white Album.

Mon, 06/13/2011 - 11:59 | 1364935 LoneCapitalist
LoneCapitalist's picture

" Turn me on Fed man"

Mon, 06/13/2011 - 13:13 | 1365161 Saxxon
Saxxon's picture

lol LoneCapitalist.

Mon, 06/13/2011 - 10:43 | 1364745 THE DORK OF CORK
THE DORK OF CORK's picture

Most goverments now do what they are told by the priestly class - they have no independence.

In a Gold Standard world we would not have these absurd sovergin wealth funds and their useless inefficient transfer of symbolic Energy/Money.

The size of the financial parasitical class used to maintain these fictions is beyond absurd now.

Mon, 06/13/2011 - 11:07 | 1364788 GoinFawr
GoinFawr's picture

Uh, I think your extrapolations may need some work.

"The fund lost nearly a quarter of its value in the market turmoil of 2008, sparking debate in Norway over its investment strategy. All the losses have since been recovered..."

I'm not sure the people of Norway agree with you on those first and last points of yours Corky. While the fund shrunk in 2008, it's worth noting that it didn't 'go negative'. Notice there is "debate" on what direction to take, that's an understatement; Norway's SWF is open to public scrutiny and its managers are held accountable, which keeps things as honest as possible.

'Absurd'? How did you come up with that? Look how the country as a whole fared in 2008...

But yeah, when you mess with paper you need to watch out for lit matches.

Mon, 06/13/2011 - 11:27 | 1364835 THE DORK OF CORK
THE DORK OF CORK's picture

Go negative in what unit of account ? maybe in 2008 Gold but only 2008

The classical gold standard was a product of capital static but productive coal based economies.

The collapse of that system under the pressure of 2 world wars was a direct result of the more fluid nature of economies as oil became the premier energy source for Navies and everything else in the transport sector.

This is about Poltical Power, not about investment returns

Mon, 06/13/2011 - 11:53 | 1364881 GoinFawr
GoinFawr's picture

I'll agree that one way to maintain political power is to keep balanced books while providing services like education and health care that are second to none... I'd vote for that administration too, every time. SWF's seem to be one way to do it. 2008 is such old news, check the link for how they fared last year.

(scroll down to 'Debt and Deficit' and see where Norway stands in a league all its own.)

Mon, 06/13/2011 - 12:13 | 1364957 THE DORK OF CORK
THE DORK OF CORK's picture

No you don't get my point - they are denied Gold ownership in their sovergin fund because in this world of Oil dependence a Gold standard or a high freegold price would transfer most power to countries by nature of their Geology alone.

Americas default of 71 was logical from their perspective - Norway like every other country is compelled to play ball with power.

 Balanced books can be balanced easily when you have a oil surplus.

In this world of the Oil Spice the priestly class have the power alone to smooth the gears of commerce and power politics - hence their dominance in all spheres.

Mon, 06/13/2011 - 15:47 | 1365022 GoinFawr
GoinFawr's picture

At one point the US had an oil surplus too, yet I don't recall any balanced books... Canada, tiny population compared to its massive natural resources; aren't they currently exporting more oil than they import? Yet they run deficits too... (Hint: look for the GS alumnis at Central Banks, and 'Conservatives' in the majority-25% of eligible voters can't be wrong!)

Ok, though. I see your point about the gold. Sure, Norway is compelled to play ball, but they play for their own team and judging by performance they're ringers.

A 3.4% loss (they were likely coerced into eating) on a portion of their capital is hardly a reason to throw the baby out with the bathwater, anyway.

Mon, 06/13/2011 - 17:00 | 1365780 Armando Javier ...
Armando Javier Finkeltein of the Boise Finkelsteins's picture

Norway is a small country with 4.9 million with about 7 or 8 blacks, natives and Pakistanis.  The only thing they have is oil and a tradition of surrendering.  They are one of the few countries that do not have a culture.


Vidkun Quisling




Mon, 06/13/2011 - 18:05 | 1365979 GoinFawr
Mon, 06/13/2011 - 10:47 | 1364757 Dick Darlington
Dick Darlington's picture

Maybe they shud actually start doing some own analysis instead of reading the overly optimistic "research reports" coming out of the banking cartel and base their decisions on those. The same analysts who have recommended buying all and any peripheral bonds throughout the crisis have not stopped doing so even 3 countries have already fallen off the wagon. Quite a track record... Or then again, they must do their "analysis" on an infinite time horizon so default here and there along the way is no biggie.

Mon, 06/13/2011 - 10:47 | 1364758 urbanelf
urbanelf's picture

I'm starting a hedge fund with the strategy of placing bets on Roulette hedged by bets on Craps.  Any takers?

Mon, 06/13/2011 - 10:55 | 1364782 Sudden Debt
Sudden Debt's picture

I'm guessing you have a bulletproof system SO PUT ME IN FOR 50K ON RED!

and if it goes bad, just write me some IOU's for the tripple of the amount untill it goes red...


Mon, 06/13/2011 - 10:51 | 1364759 ATM
ATM's picture

They did it on purpose.

Mon, 06/13/2011 - 10:52 | 1364762 Caviar Emptor
Caviar Emptor's picture

The parade of stuck perma-bulls is  getting could this be? We followed Buffet's advice and listened to Jack Welch and bet the farm on Helicopter Ben! This can't be happening!

Mon, 06/13/2011 - 10:49 | 1364763 rufusbird
rufusbird's picture

I guess this tells us they don't think they can safely insure their position with credit-default swaps...? I guess they don't share Wall Street's enthusiasm for the products...

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