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Also, the quant guru tells Kudlow to shove his "recommend a stock" game where the sun don't shine.
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Watch the expression on Trish Regan's face starting at about 3:10.
Priceless.
Looks like she's pinching a loaf.
Im gonna pretend its here "O" face. mmmmm
"No,No,No NOT THERE !!!"
Either that or the turtle head is starting to pop out.
looks like she is either very confused by Wilmott being concerned here, or has a seriously stealthy piece of gas, from the beefy burrito she scarfed down at breakfast
by beefy, do you mean the burrito was black?
yea was it
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I wonder what she's thinking about. Pantyhose? Toast, perhaps?
Her expression is a concealed scream: "I DON'T WANT TO BE HERE."
i didnt even know she had a face
funniest comment here by far.
intelligence makes brain hurt
Poor Wilmott being tag teamed by morons
"tag teamed by morons"... quote of the day.
I'd tag team trish.
Great.
Glad someone caught this.
This is a very profound point Wilmott is making.
He's basically telling them that essentially EVERYTHING they are talking about all day long is completely meaningless and pointless.
Love seeing Kudlow get all flustered when someone brings up points that basically say dont buy in these markets at all. Prolly why he doesnt have Schiff on anymore.
Yep. And CNBC's positive ratings are entirely dependent on a bull market, so there's an inherent conflict of interest with everything they do. But Kudlow's yammering gums are especially obnoxious. And only a complete idiot tries to verbally bully an intelligent Brit.
Shucks, I have been trying to tell people that since the beginning of last year, but who listens to Joe Sixpack?
www.JoeSixpack.me/orig_letter.html
He's basically telling them that essentially EVERYTHING they are talking about all day long is completely meaningless and pointless.
There you have it. No wonder they were squirming.
Citizens demand more Paul Wilmott on CNBC!
In a vacuum of understanding. The idiots thoughts seem bright.
Thank you for your profound insight (and I'm not being sarcastic here), everything Wilmott says certainly sounds on target and bull's-eye.
Kudlow is such a complete and total newsy moron. I just wonder if Trish's glow comes from those early morning pole-dancing workouts? What a babe goddess! What a space cadet!
Just got an invitation to trading seminar in the mail. Must be a new AWSOMO product targeting senior citizens & college students with a promise of extra income from home with minimum (!!! should be jailed just for that statement/ lack of appropriate disclosure) risk. That line must be more profitable than RE flipper seminars, because they through in a free launch.
Fight Club indeed.
Well done old chap.
That interview says all you need to know about the disconnect between what what lies beneath the mindset of the mathematically astute and the financial journalist
Very true #56305.
The Soros' of the world make a nice living off of both.
"MARK IT ZERO,DUDE"
Larry Kudlow is exactly who? His tone is that of an big time arse here.
Does anyone remember what original rock he came out from under?
Wilmott is spot on, and everyone should be listening...nothing has changed-
same problems as before, masked accounting, bubbles, and chasing returns, up and down!
" link between price and value has been completely lost."
Kudlow originally came out from the coke rock eh?
Kudlow was associated with the Reagan Admin's 'supply-side' economic team. Otherwise, his CV is weak. A prototype modern Wall St. shill, nothing more.
Larry's been milking his Reagan WH experience for 25 years.
He worked for Bear Stearns and after Reagan he worked with Laffer for awhile. Then after cleaning up...ah whatever.
But for christ sake, do they have to bring back the failed hedge fund manager and sports reporter Ron Insana? He makes me ill.
Today he advised all young people to buy stocks and hold them for the future. To bad he couldn't join the above conversation.
These two NY Times profiles which were about 15 months apart in the mid 90's give a pretty good picture of who Larry Kudlow is, a salesman who tries to pass himself off as an intellectual. And a recovering cocaine addict.
http://www.nytimes.com/1994/04/03/business/a-wall-st-star-s-agonizing-co...
http://www.nytimes.com/1995/07/04/business/economist-is-said-to-enter-a-...
Super find! I thought I remembered this horse's axx from years ago.
Quoted from the top link article, "best remembered for his star performance on the tennis team. But at some point Mr. Kudlow, a history major, traded in his Porsche for a VW bus, let his hair turn "fuzzy" and joined the left-wing Students for a Democratic Society. Asthma saved him from the draft".......So you can be a Star Tennis player but you cant go to war? I found that odd and disturbingly ironic.
While I was watching this debacle I kept thinking of the movie "Idiocracy".
Me too.
Now, back to "The Masturbation Channel".
"The Masturbation Network. Keepin' America 'batin for 300 years. And now, Sweet Bang Tube."
http://www.moviewavs.com/php/sounds/?id=gog&media=MP3S&type=Movies&movie=Idiocracy"e=keepinamericabatin.txt&file=keepinamericabatin.mp3
GO AWAY!!! BATIN!!!
ABSOLUTELY CNBC clueless....why do they even attempt the pretense of knowing something!?
Wilmott was not going to play their mugs game. They did not ask an illuminating question through their time. He suggested what we know. Big swings come from unforseen derivative trading that has seperated value from price. Clear to me.
I know Wilmott was too polite and too English to do the obvious:
Tell them they were a couple of twats who didn't know what the hell options were (among other things).
Indeed come out and say that this derivative action has separated value from price.
And announce that stocks held for the "long term" are a fool's errand. If you can't make your trades and be in cash at the end of the day, ya got nothing.
If it truly is a live show, she'd have dropped a meatloaf in her pantyhose after that little speech.
Wasn't Kudlow butt buddies with Kramer? I can't imagine him on coke--that voice is so awful as it is--could you imagine it speeded up?
He's also implicitly saying volatility is cheap...
bingo has been called!
Agreed, long volatility. But the VIX premiums are expensive, and don't seem to accurately track true put/call ratios. Front writing?
Wilmott is right. Too much brainpower on a network that could use a few.
Trish Regan...Who let that dog on the air? Woof
That was hard to watch. What an embarrassing interview - like two different languages being spoken.
Exactly; buy VIX calls as some are already doing.
good luck with that. they are extremely expensive... bought some a good month ago when spot was trading around 27. can't believe it's taken that long for VIX to finally move to more reasonable levels.
You can tell by the bewildered expressions that when Wilmott says go long vol they are thinking "duhh, That doesnt fit into my asset class cheat sheat..., quick say that we are not out of the woods!"
100K front month 37.5 vix callz went off this morning...pretty big bet
I can't believe there isn't a headline about "Revolutionary Struggle", the rebel group who just exploded a bomb outside the Greek Stock Exchange!
Those guys know whats up. Somehow I think we will be following Greece's roadmap, when they get all their scum and criminals out of office long before we do.
Kudlaw: Tell me which asset class price is low? ( man, if he said anything, then it would be buy, buy,buy)
Wilmott: mrrrrrr, orrrrr, darrrrrrr. (Damn, all asset class overpriced)
Trish: Ok, which asset class price is high?
Wilmott: mrrrrr,orrrr, darrrrr. (damn, my shorts and put options have not yet reeled in)
That's not Kudlow. That's Phil Hartman playing Kudlow on an SNL skit, right?
I had to look twice myself.
This was very awkward because they kept hounding Wilmott for info/opinions that he, correctly, shouldn't be giving out. It's like they ran into a wall and are stunned!
Not a big CNBC fan but I have to push back: if he shouldn't be giving out opinions why is he appearing on TV? He's got to impart *some* information, right?
His message was there's still risks of high volatility. Would've been nice if he'd at least have argued why. I suspect he meant downward volatility but he was being too cautious to say.
Larry wasn't very helpful though. He probably thought he was being super sophisticated by not asking for individual stock tips instead asking for asset classes. Near the end they got the bright idea to ask what asset classes were overvalued.
Could've asked which asset classes were at highest risk of volatility. Or pinned him down as to what an ordinary investor should do about the coming high volatility.
He explained why there's a risk of high volatility. The sheer magnitude of the derivative markets and high frequency trading both distort and drive prices. Price is controlled by the leveraged trading so severely that there's no longer any rational connection to fundamental value.
This confusion and stammering occur because Larry was asking a nonsensical question in the context of what the man just stated. OK, it's a little complex. The guy makes a point that our markets are VERY dangerous because there's so much high frequency trading with such highly leveraged instruments that prices are totally irrational. The TV hosts then respond with the question-----So what's a great trade here????
It's F'n crazy.
Name specific opinions are what they wanted and it would be imprudent for him to give any considering the work that he does. His opinions shouldn't be confined to what soundbite CNBC wants, and he was getting to them, no thanks to several interruptions.
the risks of high volatility due to the feedback effects from derivatives to underlyings which, as it turns out, seemingly have an effect on the real side of the economy.
Two words - Dumb Fucks.
Ok. What's going on. Kudlow is actually listening to people instead of trying to tell them what to say and he has a suit on so he doesn't need a cigar? I get confused when they keep changing the formula.
That's what happens when the grad student tries to take to the 1st grade class.
Is that a penis hanging from Kudlow's neck?
no - it's sutured to his mouth...
Kudlow: "booms and busts are part of a free market economy"
WRONG. They are part of a fiat currency regime.
History disagrees with the scope of your statement.
That's funny, I just talked to History this morning. He says you are wrong.
Fiat currencies cause them occur much more frequently
I'd be interested in *any* economy that has not experienced a boom & bust....
Not saying I'm all that jazzed by fiat currencies... but I can think of lots of booms and busts that occurred where the currency was backed by either silver or gold.
Massively manipulating the money supply=free market economy.
Free to cause a boom or bust in the market.
LoL
why didn't Paul just say volatility is cheap instead of going on about options being good instruments in the current market.
anyway, correlation is probably a more interesting play these days...
Tyler: Any thoughts on the safest brokerage for retail traders in these coming desperate times??
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google it
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If you get a strictly futures brokerage account with absolutely no stock trading allowed within the account than any good futures broker is required to keep 100% of your money on hand at all times. In other words they cannot take your money and invest it or churn it, they have to keep it in your account for margin.
Basically they always will have your money 100% on hand.
at some point it seems they realizes they shouldn't have invited him...eheheh
that was absurdly painful to watch. It actually made my skin itch a little bit. When he finally concedes that he is GOING LONG ON VOLATILITY, the anchors both have no clue what he's talking about. Do you think either of them have any background on options pricing whatsoever?
This sound bite sums up the whole damn market the past year.
http://www.moviewavs.com/php/sounds/?id=bst&media=MP3S&type=Movies&movie...
I'd be out of this damn business if I didn't have a mortgage payment on a now debt>equity home. That's my damn problem too strong of morals to walk away and shaft the tax payers; and too strong of ethics to shaft clients like my co-workers allowing me to make enough to walk away from this thieving industry.
"That's my damn problem too strong of morals to walk away and shaft the tax payers."
Well, you got the first three letters right. But you're not a moralist, you're a moron. Or a bank PR flunky. And, frankly, if every single underwater borrower walked away IMMEDIATELY, the PTB might be forced to actually address the issue honestly and realistically. Hence, if you're for real, you're part of the problem, not the solution. But hey, that's just my opinion.
agreed. either sleeper bank shill or a total moron. morals have nothing to do with money. ask the banks. Keep breaking yourself to benefit the banks, buddy. Lord knows they need that scrilla more than you and your family.
The sooner people wise up and walk away, (the only power left to the American people, and the banks and their Congress lackies know this, and it scares the shit out of them), the sooner we can rebuild.
I wonder what mental pigmy lined up that interview.
Wilmott probalby lost a few IQ points talking to those to clowns.
Hope he recovers.
CNBC - a constant and relentless source of entertainment.
Paul Wilmott always makes good points but for the sake of full disclosure he should admit that he has made a nice living out of providing the training for the very people who blew up the financial system.
I agree. And he is still offering an online "Certificate in Quantitative Finance" for a cool $17,999 if you are interested. http://www.cqf.com/apply/cqf-costs. There is a whole module on how to price CDS. I used to think this guy was God, now maybe not so much.
Jeepers! Do you think anyone over at Markit Group took Wilmott's course????
That was the last of Paul at CNBC. They don't want him back because he's not playing their game. Not that I'm necessarily impressed with the guy.
Link: http://www.zerohedge.com/article/weekend-reading-15#comment-22344
Why would any self-respecting human being want to be on CNBC? Why?
CNBC represents the forum that reaches the largest group of individuals that are at least minimally inclined toward financial information, and thereby the best (albeit imperfect) place for Wilmott to deliver his message. Unfortunately, he got baited into a segment that ended up being entirely different from the one he ended up doing. And I'm blown away that Kudlow would waste 3.5 minutes of precious air time with Wilmott asking about asset classes! Are you kidding? So much potential...
Where was this guy 2 years ago? Thanks for letting us know the barn is burning, you dick!
40muleteam borax
He's just too smart for either one of them
when will people realize that CNBC is just as much infotainment as E True Hollywood Stories or TMZ masked as "Buisness News"
I wonder what mental pigmy lined up that interview.
Wilmott probalby lost a few IQ points talking to those to clowns.
Hope he recovers.
CNBC - a constant and relentless source of entertainment.
LOL!!
Wilmott's comment suggesting HFT is somehow responsible for the blow-up in the unregulated derivatives markets is completely baseless.
He also suggests that HFT is driving a divergence between prices and true value, which is also baseless.
I'm sure Wilmott is a bright guy in the quant world, but he provides very little of substance in this interview (not that the CNBC folk took the conversation anywhere interesting.) This sounds more like jumping on the HFT FUD bandwagon.
Wrong. He says derivatives oversized relative
to cash markets is a big! huge! incredible
danger to the real economy. This has not
changed since the LBO's by Michael Milken,
the LTCM by those other Math. morons and
today. But today, the size of off-balance sheet
derivatives is in fact not sizable, since the value
depends on gamma and delta. So if the VIX
starts to spark up, better watch out what is happening
in the derivative space. As Warren B. said, this
is a financial nuclear time bomb.
In addition, and this is another matter, the HFT
is destroying market function, as for the long
term investor, and not the Quant HF trader.
As long as stocks are moving in such a volatility
like we are witnessing for several month now,
you will never get the true long term investor
back into the market. So the Algo Trading bullshit
increases market volatility, in courtesy of GS and
all those HF Quant morons, who on a long term
basis, destroy the true reason for stock markets:
find people who have too much money, giving
to people who have too good ideas.
If you listen carefully, you will hear the difference.
Financial markets are fare from going back to
normal, and once rf rate is above 3 %, the
HF industry will go down in flames, since nobody
will give them the money to speculate anymore.
And if I listen to this wilmott interview, I think
this guy has been buying only volatility....
not gold, not equities, just vola.... cool 8-)
Not on my watch baby!
You got the junk flag.
HFT IS the divergence between prices and true value, courtesy of taxpayer bail out and FED money laundering.
I hate when things get "destoyed"... many people mistake this for the word "destroy", but clearly the saperior minds at zero hedge were refering to an interesting hybrid of des - which is typicaly used as "a plural suffix appearing in loanwords from Greek" and the word "toys"... so while most readers thouwt the authors of this post were assleep at the wheel, they were actually putting in a cleaver little jab at the lending inductstry! Chin Chin!
Composed and thoughtful, how can you drive the herd with that? That man has no place in the MSM.
Wilmott: I'm concerned that nothing has changed ... people are still jumping on one bandwagon after another ... the potential [for worrisome volatility] is enormous.
Kudlow: Give us a bandwagon to jump on.
Wilmott: ... I'm not going there.
Kudlow: Let me rephrase that. What is the next bandwagon to jump on?
Wilmontt: Bet on [worrisome] volatility.
Who had the idea to let those 2 morons
interview a Master Of The Universe? At
least, Krusty the clown Kudlov who is a
totally arrogant dumbhead, is disqualifying
himself by asking the most stupid question,
what would you do with a billion USD.
And the beginning of the interview is even better,
watch Wilmott's face when she is starting to ask
questions, he is already absolutely sure that this
t.v. model understands NOTHING what he wants
to talk about...
CNBC is definitely the most stupid TV show I
have ever seen in my whole damned life as a
trader.
The guy summed up what's wrong with derivative market, you don't need to know if it's going up or down, it doesn't matter, and if that is the basis for the market moving, we're screwed.
I looked at this one for quite a while. The debt seems to be just too much and their military offerings are border on the whimsical, like the Osprey.
good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions
Put the CNBC "commentators" in skirts and give 'em pom-poms. Also, continue to show more and more cleavage. That's what the masses are tuning in for.
You think anyone is tuning in to find out whether AIG stock is up or down 20% in a day? You think anyone minds if five garbage stocks are doing over 30% of total daily volume? Nah!!
They want some hot cheerleaders! It's not complicated!
The good news is, nobody will want to see Kudlow's knees or coke-tits, so we'll end up with more pretty girls to watch(turn down the volume if sucking up to banksters offends you).
But who cares about what they are saying anyway? This is info-tainment baby! All we need in this country is confidence, right? And nothing gets my blood flowing like a steady supply of "Mandy".
Just give me more Mandy with those plunging necklines, and I'll be fine.
That, and more cowbell.
Problem solved. Next!
HFT is frontrunning using legal loopholes and billions of transactions in milliseconds. It's a free lunch, if lunch can be a metaphor for billions of dollars. Kinda like the Holocaust, everybody knew it was wrong but hey we can't do anything about it right? Financial WWII is closing in on the Chicago axis of evil.
Those CNBC commentators are so utterly fucking clueless you could look on their faces and see they had no idea what this guy was trying to tell them.
At least the the girl is cute, albeit an airhead.
This should get the rage aholics going:
http://thehill.com/homenews/house/56789-afl-cio-dems-push-new-wall-stree...
Trish should have loosened him up with a proper lap dance.
"Honey, you sure you ain't got no stock tips for me?'
i agree with everyone who said that wilmott said nothing - especially nothing compared to anything which could be found on zh or other commentators...he was a complete waste of time....aided and abetted by his interrogators....
Paul said plenty. Perhaps you didn't understand WHAT he said.
i understood what he said - and it was warmed
over goo from the intuitively obvious....
i can see why his hosts were a little annoyed
with the emptiness of his comments....
Paul said plenty...perhaps you didn't understand WHAT he said
Long straddles for everyone!
Tulip bulbs.
Tulip bulbs look cheap, Mr. Kudlow.
The dopes that speak into the ear pieces of CNBC dummies need to figure out how not to lose the farm...and fast. Their reaching for the guys that fired the warning shot. They don't know. Your HFT destroyed any quantitative market reasoning. Have you ever heard of anyone stopping an avalanche with information? Hope you don't get burried GE.
These monkeys. He should have lost his rag and berated them. They won't interview this non-compliant Brit again anyway.
In his previous life, I am sure Larry Kudlow was managing money at a large pension fund. What an @#!%?&!
Tired of watching the eco-finance guys still standing after they've poisoned our only well. More tired of seeing alphasoup FRN print runs to backstop every stupid debt cycle banking loser, or secret int'l transfers of future taxpayments to save the system, or gov't complicity in illegal algo trading to save the equities, or QE to distort demand for Treasuries, or CFC to steal again from future demand, or the insolvency of every GSE-big bank-FDIC still living day to day on lies and fiat dilution. Sick to death of shell insurance companies being backstopped for systemic integrity while paying money we ain't got to financial players who'll just destroy the value again. Tired of the physical economy being killed dead while the finance boys jump on every real/fake but fungible dollar left on the poker table. Tired of being told that despite the insane levels of printing and total distortion of reward signaling that the FRN has come to be, that this currency will hold.
Rotten to the core, no semblence of reality in pricing, no meaningful discussion or preparation for the future. Fatigue in watching the slo-mo death throe of a feloniously mismanaged command economy.
So forgive if, after watching all the other crappy IOUs in this system blow up, I don't share your confidence in the greenback signed by Mr. Geithner, or issued by Mr. Bernanke. While I'm sure they've got my back and best interests in mind, I think I'll hedge against the conjob.
Gold. Might help you rebuild after these high crime ex'n'still con men burn the house to the ground. FRNs wont survive, anymore than continentals or confederate notes. These honorable men kilt 'em dead.
Next 20 years won't even resemble the prior 20. Maybe some of us will remain above ground.
The News people are asking him to recommend a "buy" - as if the market is an honest place to invest. Big Media is still trying to sell the con game. But Wilmott can't say that, and the newscasters refuse to hear what he's saying. He's saying STAY OUT OF THE MARKET, the market is rigged - he won't recommend anything, because HFT means anybody that puts a nickle into the market will LOSE IT. Only the large investors can make High Frequency Trades, and they use them to control the market by shorting their positions before they move the market. There are NO STOCKS of companies to invest in - you no longer can invest in brick and mortar and a "good company" - because those shares are now victim of the derivative trading market - the HFT will short or long the good stock, just to manipulate the price. THEY SHOULD SHUT DOWN ALL THE STOCK MARKETS IMMEDIATELY - THEY ARE CRIMINAL-RUN PONZI SCHEMES...
This should be a HUGE STORY to the News reporters - he's handing them a BOMBSHELL - the con game of the century exposed! And these Big Media corporate shills instead scratch their heads and try to get Wilmott to suggest a "buy opportunity" so that ordinary people will invest in the market and fill the criminal financial class's pocketbooks. Too sad to be funny!