ZH Vs. All Comers
Readers of the blogs know that ZH is in the middle of another brouhaha with the rest of the press. This time from Reuters, NY Post, Naked Capitalism and Across the curve.
I made the following comment on NC. I stick with it.
"Eight months ago I started writing financial blogs. I am happy to say that some have appeared on NC and some at ZH.
I put my own name on this from the start. Big mistake. I wish I knew what I know now. The stuff that comes to me off the grid is scary. (I don't care what the comments are). I have written about some personal stuff and that has come to haunt me too. I have problems as a result of some of the stuff I wrote re: Swiss banks.
I thought that I had a fairly good level of contact with the significant (and not so significant) writers in the straight press. Since I started contributing to ZH they don't return my emails.
So I have paid a price for being out there. If I had to do it over again, I would be Anon."
Across the Curve does a fantastic job of reporting the bond market story. But that is all it does. Just the numbers. AC does not pose questions. It does not question policy.
Naked Capitalism does. Every day NC bangs away on the critical issues. They pose tough questions and challenge policy choices in every country. But Yves Smith is just a made up name. So I am not clear why the have taken the position they have.
ZH goes deeper than any other media outlet. Does anyone believe that Chuck Schumer or Mary Schapiro would be talking about HFT if it were not for ZH? Not a chance.
The flap about the FED/POMO and the dealers is misplaced. The Fed is buying 1.5 Trillion of paper from the dealers. They will do that in less than 9 months. This is the biggest transaction in recorded history. The dealers are getting rich off this business. There is no doubt about that is there? Does anyone think they are taking losses doing the Fed buy backs? Don’t be silly. ZH did not call this a conspiracy. But if one watches the timing of these POMO buys it is very hard to avoid the conclusion that the Fed and the dealers are on the same page. This might not be a conspiracy, but the relationship of the PDs to the Open Market Desk should make everyone nervous.
If GS is in the sights of ZH’s gun it is because GS is too powerful and needs to be brought down a few notches. They have no competition. LEH, BST are gone. Merrill is nothing compared to what they once were. Citi has been gutted and Morgan Stanley has admitted it is “no longer taking risks”. So GS is running the risk world of finance. And the only significant voice out there that is raising a stink on a regular basis is ZH. We owe them for that.
We will all be worse off if ZH changes what it has been doing. This flap convinces me that they are correct. Stay behind the curtain, but make one hell of a racket. Please.