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Kyle Bass Is "Perplexed" At Gold's Low Price

Tyler Durden's picture




 

"The stress is beginning to show," Kyle Bass warns during a wide-ranging interview with Bloomberg TV. "The beginning of the end," is here for Japanese government bonds as he notes that while quantitiavely it is clear they are insolvent, "the qualitative perception of participants is changing." But away from Japan specifically, there is a lot more on the Texan's mind. "Things go from perfectly stable to completely unstable," very quickly; even more so after 20 years of exponential debt build-up and Keynesian cover-ups; and it is this that he warns complacent investors that it is "really important to think about the capital at risk in your strategy." For this reason he prefers to hold gold rather than Treasuries, as, "when you think about the largest central banks in the world, they have all moved to unlimited printing ideology. Monetary policy happens to be the only game in town. I am perplexed as to why gold is as low as it is. I don't have a great answer for you other than you should maintain a position." His discussion varies from housing's recovery to structured credit liquidity "money is being misallocated by the printing press" and the future of the GSEs, concluding with the rather ominous, "at some point in time, I would much rather would own gold than paper. I just don't know when that time is."

 

 

Bass on Japan:

"I actually think it's the beginning of the end... When you have 20 years of pro-cyclicality of thought manifesting itself in the way that it has in Japan…I am not naive enough to think I can predict the end of a 70-year debt super cycle with any kind of precision, but looking at the changes in the qualitative perception of the participants is something that I think is key to the situation and we saw a big change on Friday."

 

"When I started sharing our views more globally it was the middle of 2010 and I said I believe the stress would begin to show itself in the next three years. Pretty much three years in, we're close, and the stress is beginning to show. Maybe that was luck at the time, but now when you ask the timing--look everyone wants the crystal ball and it's really difficult to predict this, but what you can do is follow where I think the stresses are going to show in the marketplace, but more importantly, you have to get into the heads of the participants because they all have a collective sense of fatalism. When you do the quantitative analysis here, you know they are insolvent. Everyone who owns the bonds knows they are insolvent. It's a question of how long they can hang on. What changes their views are a multitude of variables, but it's really important to follow any change in those views. When you see things like Argentina, Greece, Cyprus, Ireland, Italy--you see how fast things go from perfectly stable to completely unstable. In this case I think it will happen more quickly because of the 20 year buildup."

On Hayman Capital having strong performance overall when it has a trade that, even if it's right, takes a while:

“When we think about the globe, I think about positioning. When you invest in a fiduciary like myself or someone else, you want someone that has the courage of their convictions. You want someone that is not particularly dogmatic. And if they are, you want to think about risk management. It is really important to size things properly. So far, knock on wood, I think you have to be as thoughtful as you can possibly be on the construct of the position and not set yourself up for many years of losses until something like this happens.”

 

"It's really important to think about the capital at risk in your strategy and the construct of how you put these kinds of hedges into place. We have 90+% of our money is long--long U.S. structured credit, U.S. mortgages, U.S. stocks--the majority of our capital is long."

On structured credit and the importance of being very liquid in the long side:

“Believe it or not it's really liquid right now. With Bernanke pinning rates at zero and the entire world continues to chase yield. Our indices are being led by utilities and things that don't particularly lead us into new highs, it's because of their dividend yield. So the whole world continues to chase yield. Structured credit and even mortgage credit are one of the most liquid areas in the marketplace today. People can't get enough of them. Even in subprime credit, 97% of the 20,000 line items are still rated below investment grade. They're still junk. The ratings-based buyers aren't even there yet. The money is being misallocated by the printing press."

On gold:

“We have always had a position in gold. When you think about the largest central banks in the world, they have all moved to unlimited printing ideology. Monetary policy happens to be the only game in town. I am perplexed as to why gold is as low as it is. I don't have a great answer for you other then you should maintain a position.”

On George Soros' recent statements that he’s losing interest in gold:

“George has been a much better investor than I over the years. When you think about the global monetary base, it is north of $70 trillion. All the gold in existence is around $7-8 trillion. There might be $1.2-1.3 trillion of investable gold. At some point in time, I would much rather would own gold than paper. I just don't know when that time is.”

On whether he'd rather own gold than U.S. treasuries:

I do. If something happens in Japan like we think it is going to happen, I think U.S. Treasury nominal yields will go negative in a flight to quality. maybe gold moves up and Treasuries actually get much stronger for all the wrong reasons, not as an endorsement of U.S. fiscal policy because it is the only place money has to go... If monetary policy is the only game in town, we are all in for a world of trouble. That is the way we see it.”

On residential mortgage-backed securities:

“That investment is working... The various concentric circles surrounding housing not getting worse, which is how we think about it. We are not expecting it to get materially better, just not to get worse. The services sectors, the new mortgage insurance companies, the things that are actually asymmetric investments you can make around the housing market not worsening are where the majority of our long side of our portfolio is.”

On the future of Fannie and Freddie:

“I have no clue... We decided to just exit, thinking about them when you meet with both sides of the aisle, they both want a bullet in their head. Typically when that happens you get a bullet in your head. The second thing we were thinking about, if you remember there was a proposal to start raising the g-fees. There is a way for the U.S. Treasury to get paid back all of the money they've pumped into Fannie and Freddie if they start raising g-fees."

 

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Tue, 04/09/2013 - 17:34 | 3428531 TeamDepends
TeamDepends's picture

Price high in Japan.

Tue, 04/09/2013 - 17:47 | 3428581 Abraxas
Abraxas's picture

I've been "perplexed" for the last 2 1/2 years. 

Tue, 04/09/2013 - 18:01 | 3428597 Ag Tex
Ag Tex's picture

How can anyone as tuned in as KB be "perplexed" about gold prices, when the entire world knows what's going on?  In addition, Tulving has been completely dry of silver Eagles.

Tue, 04/09/2013 - 18:01 | 3428613 SemperFord
SemperFord's picture

I am sure he does not want to seem like some Crazed/Conspiracy anti US lunatic.

Tue, 04/09/2013 - 18:17 | 3428659 lewy14
lewy14's picture

Actually, Soros has a point.

If I look for reasons why gold isn't higher - and appeal to introspection - I have to say, I'm kinda... bored with it.

Investment has fashion seasons like everything else and gold is getting kinda played out and ratty looking.

Now, does this have any rational basis? Of course not. But it is a side effect of the way the human mind works, and the way the human mind works has a lot to do with the price action of financial instruments (of which class gold is certainly a member).

And is gold manipulated? Of course it is. Point being, the reason that the manipulation is working is that gold is falling out of fashion. When the trading desks of the PTB slice through the order book with their QE laser beams (in their oh-so-rational and subtle trading strategy), as they are wont to do a few times a week (or day), they succeed in resetting the price level better because that order book is simply thinner.

Gold needs some publicity which brings it back into focus. A magazine spread, a Piers Morgan interview. A sex tape.

I suggest gold get an agent.

Tue, 04/09/2013 - 18:29 | 3428713 Stanley Lord
Stanley Lord's picture

Excellent point.

Tue, 04/09/2013 - 19:15 | 3428875 The Alarmist
The Alarmist's picture

Perplexed?  Maybe he should start buying in quantity and see if his demand can offset some of the market-rigging dumping and price fixing that is designed to keep the price supressed.

Tue, 04/09/2013 - 20:26 | 3429088 i_fly_me
i_fly_me's picture

If taking delivery of 1600-odd Good Delivery bars isn't "buying in quantity," I am not sure what is.

Tue, 04/09/2013 - 20:40 | 3429129 Crisismode
Crisismode's picture

1600 Good Delivery Bars won't move the market one Iota.

Now, 16,000,000 Good Delivery Bars will have an effect.

 

That's the problem, there is not one single person/entity stepping up to the plate and placing

ONE HUMUNGOUS BET

That the market cannot meet, one bet so huge that all the manipulators in the world cannot

swallow it.

Only then, and ONLY THEN, will the market implode, when someone/ some entity takes on the market

Big TIME, Like the Hunt Brothers tried to do decades ago,

ONLY with MUCH deeper pockets

 

and calls their bluff, will the market implode.

Only then.

 

 

 

Tue, 04/09/2013 - 20:55 | 3429175 Manthong
Manthong's picture

“I am perplexed as to why gold is as low as it is.”

I’m not.

http://www.youtube.com/watch?v=T0jpso4jDC4

the whole interview is great, but 16:30 should eliminate any confusion.

I miss that great program.

Tue, 04/09/2013 - 21:26 | 3429255 WmMcK
WmMcK's picture

Me, too -- especially the hostess.

Tue, 04/09/2013 - 21:34 | 3429277 jeff montanye
jeff montanye's picture

if this is even half right, sinclair has a major scoop:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/7_Sin...

Wed, 04/10/2013 - 02:55 | 3429904 HardAssets
HardAssets's picture

What Sinclair says in that interview makes sense . . . . if TPTB care about the dollar or about the people of the USA.

On the other hand, if they only care about the New World Order, a new global fiat currency,  and bringing down Americans to the level of serfs so they will be easily controlled - - - there may be no help from those quarters for the 'price' of gold.

I don't think the price quoted today reflects golds true value, and I think it will go up spectacularly from here. I think the manipulators will continue their games until it blows up in their faces however.

Wed, 04/10/2013 - 01:56 | 3429855 tsx500
tsx500's picture

i'd like to check out Lauren's balloon knot ....  giggitty

Tue, 04/09/2013 - 21:19 | 3429232 dark pools of soros
dark pools of soros's picture

not too sure about that..  they could just take the order and say delivery 2-7years

ask Germany how they feel about it

Tue, 04/09/2013 - 22:24 | 3429397 DoChenRollingBearing
DoChenRollingBearing's picture

@ Crisismode

See arithmetic below, all figures approximate:

1600 GDBs = 1600 * ((32 lbs / bar) / (2.2 lbs / kg) / (1000 kg / m.t.))

approx 23.3 tonnes of Au.

23.3 tonnes is about the quantity where it starts to get very hard to buy it all at once.

 

Tue, 04/09/2013 - 23:42 | 3429651 Real Estate Geek
Real Estate Geek's picture

I think the Chinese program of acquiring Au qualifies as your humungous bet; they're just maximizing their upside in the process.

Wed, 04/10/2013 - 08:11 | 3430275 Anasteus
Anasteus's picture

Maybe this could be the sort of publicity which brings gold back into focus

Comex Gold Inventories Collapse By Largest Amount Ever On Record

Tue, 04/09/2013 - 18:58 | 3428806 FieldingMellish
FieldingMellish's picture

Gold has several agents. Kin Jong Un is one of them. 

Tue, 04/09/2013 - 19:16 | 3428814 Alexandre Stavisky
Alexandre Stavisky's picture

Everytime one becomes discouraged about any position, remember what was just said.  Timing can be everything.  Sometimes you need to take 10%+ losses for several years to gain that eventual 300-500% return.  Remember too, all the great outcomes may have been longshots.  Winter Quarters in the confederated states revolutionary war, great despair and many patriots basically defected.  However Yorktown, French Navy, King George's Madness, and french counseled tactics allowed for the Cornwallis surrender.  The right flank of the Union Army under attack by the best generalship of Lee at Gettysburg.  Little decisions held under knotted stubborness can hold the day.

Gold allows individuals to presume to single sovereignity.  They remove their labours from the game table of the small gods.  Salted away, frozen away, removed away from the King's highway.  Plunder and piracy need the foolish to make mistakes and offer up their booty.  But gold and silver take it away, stack it away and hopefully preserve it for a better season of sowing, reaping.

Aim small, miss small.  Temporary setbacks for future routs.  Pretend weakness when you are overwhelmingly strong and strength when bereft.  Remember Ghandi and the cotton, the strikes of indian workers, small actions coordinated (under the smile and mandate of heaven) make great extinguishing waves which put out the furnaces of Kali.

 

"Please to let us pass through your country. We will not pass through fields or vineyards, nor will we drink water from wells; we will go along the King's Highway; we will not turn aside to the right hand or to the left until we have passed through your territory.'"
Then Edom said to him, "You shall not pass through my land, lest I come out against you with the sword."
So the children of Israel said to him, "We will go by the Highway, and if I or my livestock drink any of your water, then I will pay for it; let me only pass through on foot, nothing more."
Then he said,"You shall not pass through." So Edom came out against them with many men and with a strong hand.
Thus Edom refused to give Israel passage through his territory; so Israel turned away from him."
Tue, 04/09/2013 - 19:26 | 3428912 CheapBastard
CheapBastard's picture

Alexandre is right. Remember when silver languished at $9-$14 for months? When everyone was "bored" and sold at $9, I actaully doubled down.

Glad I did.....a smooth return over 300%.

Patience is very important and a thorough examination of the fundamentals is important. Yes, fundamentals still count in the long run.

Tue, 04/09/2013 - 21:23 | 3429250 dark pools of soros
dark pools of soros's picture

and bitcoin went from $30 to $230 in a month..  700%

 

Wed, 04/10/2013 - 04:22 | 3429964 RideTheWalrus
RideTheWalrus's picture

That's nothing compared to Twinkies going to a $1,000 in a couple days.

Tue, 04/09/2013 - 20:06 | 3429042 ReactionToClose...
ReactionToClosedMinds's picture

yesterday I finally bailed on Wisdon Tree Commodity Currency (CCX) - mainly because of the increasing volatility around it was increasingly unsettling.  Sure enough today it got legs ........

conviction, thesis, trade, guess, weak knees ..... all inter-related.   That is why when you establish your cores, your thought process has to be as life-setting as one's religous or deep philosophical beliefs.  You have to know, understand then believe why you are not running with the crowd/herd.   And herds are known to make ridiculous swerves for almost unknown reason when in panic mode.   can one withstand a potential trampling ....  most realistically cannot so you have to bend with the mob, and position to bail before they make the final 'spooked' turn.

the above has been stated many times.    But 2008 was different (at least in my lifetime which stretches back in economic memory to the supply-side/classical Ivy League keynsians debate in the JFK admin ... where JFK shocked his 'officicials' and went Mundell  .... my guess is that Old JoeK, archdevil that he was, had enough econ savvy to know Mundell was right versus the academics and so said screw them).   I cannot forget that for the first time in my life, the potential was there for the 'wheels to come off the bus'.  Never before had that happened or felt like that ... not 1969, 1971-2, 1975-6, 1979-80, 1987, 1992, 2000 ..... 2008 was different.

 

Tue, 04/09/2013 - 20:21 | 3429077 ReactionToClose...
ReactionToClosedMinds's picture

Civil War ... sorry to digress ... but might be of interest.

There is little discussion of Gettysburg of events somewhat off central to the battlefield....... J.E.B. Stuart for still unknown reasons was not a factor although he had been 'independently' shadowing Lee.   Lee, gentleman and period piece that he was, refused to ever comment on the mystery of Stuart.  But we do know one thing.   Stuart approached the Unions from their rear behind the knoll around day 1 or 2 (I cannot recall this clearly now).  An alert aide present, maybe sent to find where Stuart was, I cannot recall)  saw the feared Stuart's approach which by accounts seemed more meandering than purposeful.  He was with the Michigan cavalry.  The commander of the Michigans  and that aide realized what just might happen if the size of Stuart's force suddenly appeared at the rear of the infantry almost unannounced.  Showing the kind of initiative you wish every commander would demonstrate, that aide convinced (as he could not 'command' the more senior officer heading the Michigans) or they co-concurred that the only practical thing they could do was .....essentially a suicide attack on Stuart  ... with the objective to disrupt Stuart from coherently attacking the Union rear.   Stuart, evidently unaware of Lee's exact predispositions or needs, broke off the attack on the smaller Michigans and the meanderig direction he had been on.

That 'aide' was Geroge Armstrong Custer (now portrayed as an idiot & loser & loose cannon commander) ...yet Custer was good enough to be one of the top aides to be with Grant at Appomattox and astutely buy the signing table where Lee & Grant ended eveything.

Tue, 04/09/2013 - 22:43 | 3429441 Geruda
Geruda's picture

The speaking you are having about the blonde general who committed suicide is having much interesting information about the attacking he was doing against the general who was Stuart.  I am wondering if the thinking you are having to be saying "disrupt" was in his mind is not thinking by peoples after the disrupt was happening and that the thinking in the mind of the general who was also wanting to be disrupting the bull who was sitting was blind luck to be having when only glory was the thing he was wanting to be having.  The words I am meaning to be saying is to be asking if strategy and tactics are things peoples are adding to the thinking of Custer who was not having them when he was doing the attacking he was doing.

Tue, 04/09/2013 - 19:00 | 3428817 Cognitive Dissonance
Cognitive Dissonance's picture

"Gold needs some publicity which brings it back into focus. A magazine spread, a Piers Morgan interview. A sex tape. I suggest gold get an agent."

May I suggest Gold call Bitcoin's PR agent and have a sit down pronto?  :)

Tue, 04/09/2013 - 19:12 | 3428870 Supernova Born
Supernova Born's picture

Gold is ably represented by CSA (chemistry, science, and astronomy).

Tue, 04/09/2013 - 21:40 | 3429298 NewThor
NewThor's picture

Best. Zerohedge. Comment. Ever.

Sun, 04/14/2013 - 17:15 | 3429591 Supernova Born
Supernova Born's picture

I see.

Tue, 04/09/2013 - 19:17 | 3428880 The Alarmist
The Alarmist's picture

Mr. Keiser is currently representing Silver and can therefore not take Gold on as a client.

Wed, 04/10/2013 - 04:24 | 3429966 RideTheWalrus
RideTheWalrus's picture

$500 silver or $1,000,000 BitCoins - which one will reach Keisers claim first?

Tue, 04/09/2013 - 19:15 | 3428881 DaddyO
DaddyO's picture

+1 CD

DaddyO

Tue, 04/09/2013 - 19:42 | 3428964 krispkritter
krispkritter's picture

Somebody invent the 'Goldashians' post-haste!!!! Kim, Khloe, hell, we'll take 'Glowie' Goldashian! Just don't cut the ratings!!!!

Tue, 04/09/2013 - 19:43 | 3428969 Tango in the Blight
Tango in the Blight's picture

Does Bass hold any Bitcoins?

Tue, 04/09/2013 - 20:32 | 3429101 Spigot
Spigot's picture

He personally holds $1,000,000 is US Nickels.

Tue, 04/09/2013 - 23:19 | 3429558 Supernova Born
Supernova Born's picture

So 110 tons of nickels and 0.0 grams of bitcoins (regardless).

Tue, 04/09/2013 - 19:41 | 3428961 archon
archon's picture

An agent would help, but in the long-term gold needs no agents other than the central banks, and no more pr than when the SHTF.  A pr agent couldn't drive people to gold any quicker than the thought of central bankers printing money, or when the SHTF as their monopoly money starts inflating prices.

Tue, 04/09/2013 - 20:07 | 3429045 NoDebt
NoDebt's picture

Agree.  Gold needs no agent.  Anything that's got a PR department is some percentage of bullshit.  Real value gets money by attraction, not promotion.

Personally, I think gold is weighed down by all the advertisements for gold.  Never a more sure sign that something is a "fad" than when you hear it hawked for sale on the TV, right?  EVEN WITH THAT TYPICAL SIGN OF "THE END OF A FAD" GOLD HAS NOT FALLEN TO SHIT.  We have NOT seen a 1981-like plunge.  We've really just taken the foam off the latte.  $1900 down to $1600 is not exactly "capitulation".  The coffee is still sitting in the cup, same as it ever was.

I'm not even a "gold bug".  To me, it's just another investment with it's own market, it's own strengths and weaknesses.  But in my opinion, if it was going to get sent to the woodshed and whipped like a red-headed step-child it would have happened by now.  It's NOT rolling over.  Just taking a minute to clear it's throat, perhaps.

Tue, 04/09/2013 - 22:31 | 3429417 Geruda
Geruda's picture

"foam off the latte"

 

I am having laughings for the witty words you are speaking.

Tue, 04/09/2013 - 21:08 | 3429197 Againstthelie
Againstthelie's picture

You should listen very carefully what Soros says.This people is known throughout 3000 years, all over the world, in all people and cultures as the masters of lie.

Soros did not say, what the stupid Goy interviewing Kyle Bass said. Soros said, people believe the safe haven status was destroyed. He did not say with one word, what he thinks about gold.

BTW, Soros never said, too, that Gold would be in a bubble. Only superficial GOYIM who always judge the overall straight meaning of sentences, because they are not trained to the technique of talmudic rabulism, heard that. Soros said that gold was the ultimate bubble. Means: when it becomes a bubble, it's the biggest of all.

Tue, 04/09/2013 - 21:49 | 3429329 ebworthen
ebworthen's picture

I'm sure people chasing the ethereal and nebulous promise of the intangible Bitcoin hasn't helped the Gold price.

Tue, 04/09/2013 - 22:26 | 3429406 Jungle Jim
Jungle Jim's picture

When I sell my silver (or gold), it is not because I am bored with it.

It is because I have nothing else left to sell in order to raise the cash to pay my rent, utility bills, grocery bills, car & homeowner's insurance, medical/dental bills, etc.

It's kind of frustrating to be forced to sell it at such a brutal loss, compared to what I paid for it. (That is, I have lost a LOT of money in PMs these past 2 1/2 years.)

Wow, it sure looks like I should have bought these BitCoins (whatever they are), instead of all that ungodly amount of silver and gold.

Wed, 04/10/2013 - 07:08 | 3430114 samcontrol
samcontrol's picture

Why are you paying insurance on a house that is not yours?

Tue, 04/09/2013 - 23:53 | 3429676 Escrava Isaura
Escrava Isaura's picture

lewy, check FOFOA'S latest article [link below]... You will appreciate.

http://fofoa.blogspot.com/2013/03/checkmate-2-slow-history.html

 

Wed, 04/10/2013 - 03:32 | 3429925 lewy14
lewy14's picture

Thanks! Very interesting. I'd been through the history of the London Gold Pool etc but it's great to read the contemporaneous accounts. 

BTW I think you're one of the few who actually "got" my post...

Wed, 04/10/2013 - 07:10 | 3430122 samcontrol
samcontrol's picture

well you mix fashion with castles in the air , so how can most understand you?

Wed, 04/10/2013 - 01:48 | 3429843 MedTechEntrepreneur
MedTechEntrepreneur's picture

Gold has an agent alright...The Fed...and they have lots money to play with.

Wed, 04/10/2013 - 02:42 | 3429895 Ghordius
Ghordius's picture

imho boring is the one characteristic of gold that makes it most appealing, to me - real money is supposed to be boring, compared to exciting investment vehicles

Wed, 04/10/2013 - 04:27 | 3429968 RideTheWalrus
RideTheWalrus's picture

Tortoise (BitCoins) VS the Hare (Gold/Silver)

Wed, 04/10/2013 - 10:52 | 3431270 edwardo1
edwardo1's picture

Soros is either ignorant (highly unlikely) or disingenuous (likely) regarding gold. There are two golds, and they have very little relationship to one another. Soros is clearly referring to paper gold, but, because he is incapable of being forthright, he will not publicly make the distinction as one that informs his waning interest in "gold"

The paper gold markets in the form of mining shares, mining share ETF and just plain old vanilla ETFs like GLD are in the process of either becoming extinct, in the case of GLD, or being reduced to functioning like utilities in the coming new monetary system where physical gold will function as the planet's reserve asset for small fry and giants alike.

Tue, 04/09/2013 - 18:09 | 3428637 Bay of Pigs
Bay of Pigs's picture

If Tulving is out of stock it must be a conspiracy of some sort. Maybe xPat and some other PM paper trading experts can weigh in and tell us why this is the case.

After all, it only costs 5 bucks to dig it out of the ground.

Tue, 04/09/2013 - 18:34 | 3428732 Doña K
Doña K's picture

I love KB but he has Kardashian-like valley talk. Maybe he has daughters arround the house. I don't know.

Kyle, please get rid of that accent, it's no longer "de rigueur"  

Tue, 04/09/2013 - 18:47 | 3428764 akak
akak's picture

It's amazing and revolting how much that nails-on-chalkboard, immature-sounding ValleyGirl accent has not just persisted and spread among most females, but infiltrated the male population over the last 20 or 30 years as well --- and not just in southern California, either, but pretty much the entire (urban) West Coast.  Even here in Alaska, I hear many young woman (and some guys) who speak in such a crazy, choppy, nasalized, flaky manner that I simply cannot take seriously anything they have to say, nor them themselves.

Tue, 04/09/2013 - 20:01 | 3429031 Spitzer
Spitzer's picture

Lol what are you guys talking about ? i gotta listen again. But hey, ive never heard that stumpy whore talk

Tue, 04/09/2013 - 20:16 | 3429062 Bastiat
Bastiat's picture

 

"crazy, choppy, nasalized, flaky "  I might add lilting and inflecting the end of phrases up as if everything was a question.

Drives me nuts. And this talking in the back of the throat thing young women do . . .

 

This will repair your ear:  http://www.youtube.com/watch?v=ccVC5MjZEfs

Tue, 04/09/2013 - 22:52 | 3429456 Big Slick
Big Slick's picture

Speaking of Tom Waits, I love the end credits to Enron: Smartest Guys in the Room

http://www.youtube.com/watch?v=W9mhsW5aWJM

The lyrics paint our current situation:

I'd sell your heart to the junkman baby
For a buck, for a buck
If you're looking for someone to pull you out of that ditch
You're out of luck, you're out of luck

Ship is sinking
The ship is sinking
The ship is sinking

There's a leak, there's a leak in the boiler room
The poor, the lame, the blind
Who are the ones that we kept in charge?
Killers, thieves and lawyers

God's away, God's away
God's away on business, business
God's away, God's away
God's away on business, business

Digging up the dead with a shovel and a pick
It's a job, it's a job
Bloody moon rising with a plague and a flood
Join the mob, join the mob
It's all over, it's all over
It's all over

There's a leak, there's a leak in the boiler room
The poor, the lame, the blind
Who are the ones that we kept in charge?
Killers, thieves and lawyers

God's away, God's away
God's away on business, business
God's away, God's away on business, business

Godddamn there's always such a big temptation
To be good, to be good
There's always free cheddar in a mousetrap, baby
It's a deal, it's a deal

God's away, God's away
God's away on business, business
God's away, God's away
God's away on business, business

I narrow my eyes like a coin slot baby
Let her ring, let her ring

God's away, God's away
God's away on business, business
God's away, God's away
God's away on business, business

Tue, 04/09/2013 - 19:50 | 3428987 Melin
Melin's picture

contribute one one millionth to the discussion as Mr. Bass has and then we can all chat about the superficial mannerisms you find vexing.

Tue, 04/09/2013 - 19:36 | 3428945 MrNude
MrNude's picture

''when the entire world knows what's going on?''

 

That's the rub, you are either in on it and playing the market, know about it and are watching from the sidelines like us or one of the billions of economically illiterate suckers out in the world who doesn't even know the difference between Hyperinflation and Hypothecation they just see on the news that the market reached epic new highs today, green across the board, so everything must be fine and dandy! The future must be bright!

Tue, 04/09/2013 - 19:41 | 3428962 AllWorkedUp
AllWorkedUp's picture

Seriously. Why doesn't he just come out and talk about the manipulated paper markets? What is he afraid of?

Perplexed? Perplexed that physical silver is actually starting to dry up and the paper price is near two years lows? C'mon Kyle, I'd hoped you were better than that.

Tue, 04/09/2013 - 19:52 | 3428993 augmister
augmister's picture

Do you really think KB is going to throw us bone?  Tulving's sitution is a valuable data point.  Weak hands are not that weak, are they???


Tue, 04/09/2013 - 22:14 | 3429372 wee-weed up
wee-weed up's picture

Perplexed?!?! You gotta be shittin' me...

KB just lost all credibility.

Tue, 04/09/2013 - 17:33 | 3428535 LoneStarHog
LoneStarHog's picture

Hey, Bass, it's called MANIPULATION, you friggin' MORON!

Tue, 04/09/2013 - 17:39 | 3428552 prains
prains's picture

when you operate and make your living within the biggest criminal syndicate in human history <USA> and you are as smart as KB you know to keep your mouth shut. otherwise it gets filled with dirt in the nevada desert

Tue, 04/09/2013 - 17:41 | 3428563 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

sad but true

Tue, 04/09/2013 - 17:51 | 3428590 AldoHux_IV
AldoHux_IV's picture

Is participation not consent? So why make it out to be sad, when so many gladly oblige? The majority is never wrong, right?

Tue, 04/09/2013 - 19:17 | 3428841 Supernova Born
Supernova Born's picture

What is perplexing to me is that anyone would expect KB to call out TPTB on their obvious gold manipulation. How would that profit him?

Tue, 04/09/2013 - 22:36 | 3429431 Diogenes
Diogenes's picture

He's not a Jeremiah he's a diagnostician. He doesn't trade he invests. Notice that he saw the present Japanese situation coming 3 years ago. He obviously thinks it's a bad business and can only end badly for Japan but he doesn't say so directly. You have to read between the lines. Same with gold. He said as plain as could be that he regards gold as a currency not a commodity. That says like the yen and the Japanese bond market they can try to manipulate gold but in the end they will fail.

Tue, 04/09/2013 - 20:26 | 3429076 GeoffreyT
GeoffreyT's picture

No, participation is absolutely NOT consent. Examples: duress ("Actus me invito factus, non est meus actus"). Obviously there's no duress on KB, but duress is only one example. Bradley Manning 'participated' in the US slaughter of brown children, but he did not consent (and may well have taken actions to give meaning to that lack of consent).

Also - the majority is almost ALWAYS wrong.

That's obvious given that <5% of the adult population shows high level (level 5) skills in ANY of the four tested areas in the Adult Literacy and Lifeskills (ALL) Survey: problem-solving, document literacy, prose literacy and numeracy.

The most recent data on this is from OECD and Statistics Canada (2011) Literacy for Life: Further Results from the Adult Literacy and Life Skills Survey: Table 2.3 [p 61] gives the level 4/5 (grouped) breakdown by country. The decomposition of the grouped level 4/5 data will be the same (broadly) as in Table 1.3 on p21 of US Department of Education, National Centre for Educational Statistics Working Paper No. 97-33 "Adult Literacy: An International Perspective" (1997).

Download those papers, read them and fucking WEEP at the abysmal level of cognition possessed by the bottom 80% of every western society: the bottom 50% fail to get to level 3 (which, if you look at the sample questionnaires, corresponds roughly with 8th grade).

And that's after over a century of forced K10 (and almost three decades of forced K12) State education.

If >80% of the population is incapable of cognitive function at levels required to correctly answer L4 questions on the ALL Survey, then democracy is a terrible idea - and that's before we discuss Arrow's Impossibility Theorem, which shows that democracy is incapable of reflecting the social welfare function (and since no other mechanism even pretends to do so, ALL forms of the State can be said not to do so - hence the State is not a social-welfare-optimising entity).

Wed, 04/10/2013 - 02:27 | 3429891 Doña K
Doña K's picture

One of the reasons, Aristotle was suggesting that aristocratic rule may have not been a bad idea.

Tue, 04/09/2013 - 17:59 | 3428604 Citxmech
Citxmech's picture

Anybody who stockpiles $1m in fucking nickles knows exactly why gold is where it is.  If you listened to that interview and you've paid any attention to Kyle on this site - you know he knows what's up and was obviously keeping the rhetoric toned-way, way, down for his audience.

Tue, 04/09/2013 - 19:37 | 3428843 sunaJ
sunaJ's picture

It is a sign of wisdom to not share what you think you know but deliver the same, sound reason for action.  As you say, he is clever enough to promote the same action without saying precisely why:  Gold is a necessary capital allocation, the mathematics of the price do not seem to reflect supply or demand, and physical possession is victorious over paper claim. 

He's just not on a moral crusade like you and I may be.  Morally, I would not be able to definitively tell you what Kyle Bass thinks (though I can venture a guess).  All I can tell you from various presentations/interviews that I have seen is that he  knows how to make money from what he sees, which as Citxmech points out, is probably the only correlation he cares to demonstrate.  It is not hard for a thinking human to read between his lines.

Tue, 04/09/2013 - 20:09 | 3429056 GeoffreyT
GeoffreyT's picture

^ this. The only person who might have put it better, would be @CognitiveDissonance.

Bass has fiduciary responsibilities to his unitholders that require him to tone down the moonbat-ish aspects of his worldview: anyone who saw the 2011 forum knows full well that he know's what's up.

For those with ears to hear, he says plenty: he can't come right out and say "Guys, this shit is coming our way too - we are all totally fucked." Instead he has to conform to the "big end of town" playing conditions.

One thing i think can be said with some certainty: you won't see anyone from Hayman doing a SAC-style perp walk.

Tue, 04/09/2013 - 20:40 | 3429126 Tinky
Tinky's picture

"you won't see anyone from Hayman doing a SAC-style perp walk."

So even after the relentless fucking has been completed, Hayman will remain intact?

Tue, 04/09/2013 - 22:38 | 3429433 disabledvet
disabledvet's picture

"Sound wisdom" is "facts change and so do I." When all we do is say the same thing over and over again "eventually we'll be totally wrong." Not to say I'll be right on my treasury call...but I'm not just giving a call but giving a date "for all those pluckers to shoot at" which to my knowledge IS unheard. Trust me...I hate being "annoying empirical guy" ...the Greeks hated them 2500 years ago so it's good to know "some things actually do remain constant over time." To be honest I've gotten to the point where I find me annoying actually. "What perplexing and outrageous thing will I say next?" Does come to mind. But let's face it "money is a whore." There's just no pleasing it...so if you're not changing your tune you're just using the same old boring pick up that stopped working 20 years ago. Now if we were back on the gold standard all you'd need to say is "I'm Lars Bjorkson!" and everything would just come your way. In a fiat world though "you always have to justify"...and trust me when I tell you...I thought I was out of market moving plays 4 years ago. (That Google call just prior to earnings which Cramer said "sell" which caused the stock to go up 60 bucks that afternoon instead was one of my all time favorites...but immediately caused me to back down cuz "what the hell do I know?" came to mind.) in any case "this call is designed to move the market" which means inherently this is a BAD idea. So far it's working out so good "I'm calling the pro's out." These would be people who manage 100's of billions. What was that about the hockey player who played golf? "Yeah, that guy bitchez."

Wed, 04/10/2013 - 00:35 | 3429743 Real Estate Geek
Real Estate Geek's picture

tldr

Tue, 04/09/2013 - 18:10 | 3428636 1100-TACTICAL-12
1100-TACTICAL-12's picture

LSH why dis a homie ??

Tue, 04/09/2013 - 17:33 | 3428536 Groundhog Day
Groundhog Day's picture

Long live KB

Tue, 04/09/2013 - 18:00 | 3428605 Ying-Yang
Ying-Yang's picture

Long live KY... jelly that is.

Tue, 04/09/2013 - 18:11 | 3428642 JPM Hater001
JPM Hater001's picture

Man crush.  My sister lives in Dallas and is single...Is Kyle single?  How cool to sit at holidays and BS with this guy.

Tue, 04/09/2013 - 19:22 | 3428905 pslater
pslater's picture

Plus, he really is 'one of the smartest guys in the room'.  I'm amazed he made it through 3/4 of the interview before he told that Stephanie wench how full of shit she was.  Why is she even on the air?  Bloomberg should have hired Lauren Lyster so they could actually put some one smart on the air....

Tue, 04/09/2013 - 20:57 | 3429180 RangerRiley
RangerRiley's picture

...and her green dress is awful.

Tue, 04/09/2013 - 20:04 | 3429037 GeoffreyT
GeoffreyT's picture

lol @ "man crush"... I agree (in a totally nohomo kind of way, as they say on the bb.com forums when the broscience runs like Bernanke fiat).

That said, Bass has done a shit ton of work to become more telegenic: must have lost 60lb, and he's dived into a bottle of Just for Men.

If he still looked like he did a few years ago (like a younger, fatter Tony Soprano) he would just be a smart fat guy (makeovers are important in a society as shallow as the US unless you've got a hook like Marc Faber mit his "und-zo-on-und-zo-force").

 

Tue, 04/09/2013 - 17:36 | 3428546 Sudden Debt
Sudden Debt's picture

tik tak... at one time in the short run... anything will be better than paper.

Tue, 04/09/2013 - 17:44 | 3428575 Rainman
Rainman's picture

does this mean I should shitcan my old stamps and baseball cards..??

Tue, 04/09/2013 - 19:56 | 3429016 Go Tribe
Go Tribe's picture

Why sell at the low? BTFD on those.

Wed, 04/10/2013 - 06:26 | 3430053 Sudden Debt
Sudden Debt's picture

nono... keep them till you hit puberty... and than give them to another kid...

Tue, 04/09/2013 - 17:38 | 3428547 fonzannoon
fonzannoon's picture

One thing is clear. Bass thinks that male interviewer is a total douche.

Tue, 04/09/2013 - 18:02 | 3428611 Citxmech
Citxmech's picture

Doesn't everyone?  I swear, Stephanie Rhul looked like she wanted to blow KB right there on camera.

Tue, 04/09/2013 - 18:10 | 3428641 Meat Hammer
Meat Hammer's picture

I think I saw her left hand disappear under the table to do a little double-click the mouse action, if you get my drift.

Tue, 04/09/2013 - 18:51 | 3428778 IridiumRebel
IridiumRebel's picture

She will fuck him for Canned goods the way this shit is going.....long Armageddon ho's.

Tue, 04/09/2013 - 20:01 | 3429032 ParkAveFlasher
ParkAveFlasher's picture

+1.  Wanna ride in my dune buggy,baby?  Sure you can aim the harpoon gun.

Tue, 04/09/2013 - 19:08 | 3428852 hardcleareye
hardcleareye's picture

Geezze you guys, get a god damn life.........  lol

Tue, 04/09/2013 - 19:57 | 3429017 55 men
55 men's picture

Double click is two girls from what my friend told me.

Tue, 04/09/2013 - 17:39 | 3428555 Vint Slugs
Vint Slugs's picture

It's not uncommon for farseeing people, like Bass here, to wonder why a market doesn't reflect what they perceive as reality.  Happens all the time.  The  markets aren't efficient, therefore they sometimes are relatively over- or, as in this case, undervalued.

Tue, 04/09/2013 - 17:40 | 3428557 AssFire
AssFire's picture

Tacit understanding: China manipulates the silver, and the US manipulates the gold.

Tue, 04/09/2013 - 18:03 | 3428615 francis_sawyer
francis_sawyer's picture

Good thing NEITHER manipulates the price of bitcoins [rolls eyes]...

~~~

Otherwise ~ we'd never have true price discovery on ANYTHING!

Tue, 04/09/2013 - 18:48 | 3428770 IridiumRebel
IridiumRebel's picture

Speaking of which, anyone know of a site to buy some of these shits? I am taking my negligible money away from stawks and riding the fucker.

Tue, 04/09/2013 - 19:02 | 3428811 francis_sawyer
francis_sawyer's picture

I hear this site is reputable

~~~

www.imagoddamnedmotherfuckingidiot.com

Tue, 04/09/2013 - 20:51 | 3429156 IridiumRebel
IridiumRebel's picture

'twas a ruse....I left the / sarc off....I looke at purchase sites today just to see and the things wouldn't load.....I walked away.

Tue, 04/09/2013 - 17:40 | 3428560 AldoHux_IV
AldoHux_IV's picture

The liquidity in the mortgage and real estate trade ie the front run trade isn't as liquid when the trade reverses-- that's the prob of front running central bank policy. The illusion of risk mgmt masks being lucky to exit the theater in a calm and orderly fashion.

Tue, 04/09/2013 - 17:55 | 3428574 Paper CRUSHer
Paper CRUSHer's picture

Yen/gold price should have blown well past that 1980 nominal high of around 180000yen by now.

Damn you crimex syndicate bitchez.

Anyway...........

Comex Gold Inventories Collapse By Largest Amount Ever On Record

http://news.goldseek.com/GoldSeek/1365538557.php

Tue, 04/09/2013 - 17:54 | 3428578 Silverhog
Silverhog's picture
  1. Guess he's not a frequent visitor for that "Tremendous Interview" on Eric King's website. 
Tue, 04/09/2013 - 19:03 | 3428794 BigJim
BigJim's picture

Ah yes, King World News... today's headlines:

  Richard Russell - The Fed, Hard Times, A Crash & Collectibles

With gold and silver surging, today the Godfather of newsletter writers, Richard Russell, writes about everything from Bernanke leaving the Fed, to stocks, bonds, diamonds, watches, and the extremely...

  Sinclair: Conflict Erupts As Elites Plan More Wealth Destruction

Today Jim Sinclair warned King World News that conflict has now erupted between Western central planners as the elites have planned further wealth destruction. Sinclair also cautioned that people in...

Chaos, Cyprus, Manipulation & How To Protect Your Money

Today 40-year veteran, Robert Fitzwilson, wrote the following piece exclusively for King World News.  Fitzwilson, who is founder of The Portola Group, warned that time is running out for investors and...
Embry - This Is Heading Toward A Catastrophic Ending

Today John Embry told King World News we are now headed toward a catastrophic ending. Embry also warned KWN to expect tremendous chaos going forward as the world moves into the first global...
Sinclair - Stunning Shift In US Government & Fed Gold Policy

Today Jim Sinclair told King World News the world is about to witness a stunning shift in the US government and Fed gold policy. This remarkable change in strategy will shock investors and... Money Flows In To Gold & Silver Are About To Skyrocket

Money flows in to gold and silver are about to skyrocket according to renowned economist Michael Pento, who is CEO of Pento Portfolio Strategies. Pento also believes the dollar is going plunge in... Art Cashin - Aftermath of Cyprus, Fear, Contagion & Crisis

Today 50-year veteran Art Cashin spoke with King World News about the aftermath of the Cyprus disaster and the risks investors around the world face going forward. Cashin, who is Director of Floor... Spark That Will Send The World Into A Hyperinflationary Spiral

Today James Turk warned King World News about the spark that will send the world into a hyperinflationary spiral, as well as the next banking crisis. Below is what Turk had to say in this... The Financial System May Surprise You Going Forward

Today one of the wealthiest people in the financial world spoke with King World News about what they can expect from the financial system going forward, and it may surprise a great many readers around... Sinclair - This Will Create The Mother Of All Financial Crises

Today Jim Sinclair spoke with King World News about what he believes will create the “Mother of all financial crises.” He also discussed the coming collapse and the desperate government intervention... Desperate Countries To Accelerate Private Wealth Destruction

Today Egon von Greyerz told King World News that desperate countries will accelerate the amount of wealth destruction they inflict on their citizens going forward. Greyerz, who is founder of...

you could have read the exact same stuff there 5 years ago. 

Doesn't mean they won't be ultimately right, of course, but I wouldn't rely on them for market timing, that's for sure. 

I used to go there whenever I needed a bit of 'fortification' to keep my PM longs... now I just grit my teeth. I already know what his contributors will say, we're on the very brink of catastrophe, time is running out to get physical, huge unprecedented demand for physical out of London, the bullion banks are panicking, James Turk out of Spain, blah blah fucking blah

Tue, 04/09/2013 - 20:48 | 3429148 Tinky
Tinky's picture

While your broader point is fair, a strong argument could be made that there is good reason to expect a serious crisis, or cascade of crisis very soon now. In other words, given the absolutely reckless policies currently in place, coupled with the increasing fragility of the system, the tipping point almost certainly has drawn nearer in recent years.

Tue, 04/09/2013 - 19:14 | 3428872 Motorhead
Motorhead's picture

LOL.  Notice Jim Sinclair "pops in" just about every other day now.  Also noticed King changed Sinclair's introduction/bio.  King used to talk about his father and Jesse Livermore.  Now, to show the world that Sinclair is famous for something and not his father, King now writes about how Paul Volcker called up him to help during a Wall St. crisis.

I think King needs to give it a rest.  The trend is currently down for gold and silver, and that is just too damn bad.  Not saying I have to like it, but that's the way the ball is bouncing right now.

Tue, 04/09/2013 - 17:46 | 3428580 akak
akak's picture

Falling BoJ bonds or receding KB hairline: which will cross the finish line first?

Tue, 04/09/2013 - 18:10 | 3428638 Itch
Itch's picture

Thats not a receding hairline, thats called a receded hairline; its over, hair transpant time.

Tue, 04/09/2013 - 19:24 | 3428909 akak
akak's picture

Ooh, getting downarrowed by the premature baldies here!

Get over yourselves, guys, and just shave it all off already and be done with it.

Tue, 04/09/2013 - 17:48 | 3428582 q99x2
q99x2's picture

Its my birthright to receive government entitlements.

I need more.

Tue, 04/09/2013 - 17:49 | 3428586 Debugas
Debugas's picture

two greek banks are going bust

 

youtube.com/watch?v=kj20Hxjq-bQ

Tue, 04/09/2013 - 17:51 | 3428591 miningman
miningman's picture

The time is NOW to hold physical precious against the fiat WAKE UP when cost of production of finite source becomes the NORM due to INFLATION of FEDEAL RESERVE NOTE *(PROMISS TO PAY) WHAT! Kyle Bass the bottom line is I CANT OFFORD ANY MORE OF THIS SHIX....Who is John Galt?

Tue, 04/09/2013 - 23:38 | 3429634 Jon Bong Jovi
Jon Bong Jovi's picture

Yeah bro what you said! 

Tue, 04/09/2013 - 17:53 | 3428592 musket
musket's picture

Definitely manipulation and has been for years.  Last week when gold basically crashed to its 1550 saftey net I said why because there was no news.  Then I remebered the employment reports on Friday...Voila!  Can you imagine how much the insiders made on Friday by buying into the snapback.....

Tue, 04/09/2013 - 18:00 | 3428594 lunaticfringe
lunaticfringe's picture

I am convinced that Reagan's plunge protection team is behind the suppressed price of gold. There is simply no other explanation. Please read who is on it and tell me it doesn't make sense. The definition:


Definition of 'Plunge Protection Team - PPT'

A colloquial name given to the Working Group on Financial Markets. The Plunge Protection Team was created to make financial and economic recommendations to various sectors of the economy in times of economic turbulence. The team consists of the Secretary of the Treasury, the Chairman of the Board of Governors of the Federal Reserve, the Chairman of the SEC and the Chairman of the Commodity Futures Trading Commission.

Tue, 04/09/2013 - 17:56 | 3428598 Strider52
Strider52's picture

 At some point in time, I would much rather would own gold than paper.(sic)

Most of my paper turned into metal over the last couple of years. I think it was one of the best things I've ever done in my life.

Tue, 04/09/2013 - 18:26 | 3428699 IridiumRebel
IridiumRebel's picture

I resemble this comment.....

Tue, 04/09/2013 - 19:01 | 3428812 Pareto
Pareto's picture

Absolutely, totally, 100 per fucking sent agree, that it is the best financial decision I have ever made in my life!

Tue, 04/09/2013 - 17:58 | 3428599 Dr. Engali
Dr. Engali's picture

I'm perplexed as to why a smart guy like Kyle Bass is perplexed. When you can print as much paper gold as you want then it's easy to keep a lid on prices. It's a different story once people start to take delivery. It will be fun to watch all these paper holders scramble for their re-re-re-hypothecated gold when shit hits the fan. I'm sure he probably knows that but doesn't want Biden including him in the black helicopter crowd.

Tue, 04/09/2013 - 18:01 | 3428608 Surrealist
Surrealist's picture

Exactly, I just posted a query below at the same time as you with a similar view.

Tue, 04/09/2013 - 18:01 | 3428609 Rainman
Rainman's picture

methinx you are right on target

Tue, 04/09/2013 - 18:06 | 3428629 One of We
One of We's picture

"Perplexed?"  It's okay, I know it's hard to beleive but the Emperor reallly has no clothes......

Tue, 04/09/2013 - 18:09 | 3428634 fonzannoon
fonzannoon's picture

I just don't think he is perplexed. He is fake perplexed because he knows exactly what is going on. He went out a while back and bought himself a shitload of gold. Built a fortress and bought a zillion nickels and god knows what else. He is a terrorist in the eyes of TPTB if there ever was one.  So to square things away he acts perplexed and plays the game and genuinely has fun betting on the order the domino's fall. At a certain point he will duck away and that is the last you will hear from him until we head out ther other side of the black hole.

It seems to be going mainstream lately that paper gold is shit and everyone is dumping it. The only question is when does the paper price shit the bed and the physical price supplants it.

Tue, 04/09/2013 - 18:48 | 3428767 kito
kito's picture

sorry fonz, as i posted below, you cant believe, as kyle does, housing will just trawl along, not get better, not get worse, and then believe america will have its day of reckoning........housing has relied heavily on LOW INTEREST RATES...is kyle suggesting rates will continue to stay low for a very long time? or that somehow, yields will be forced up and housing will continue on its merry way??? impossible....doesnt kyle see structural problems in this country that are very bearish for housing?? like people finding  jobs that dont involve a checkout counter?????? does kyle believe the massive u.s. debt, scheduled to be 137% of gdp by 2017, wont have an impact on housing when TSHTF???????????......kyle is not making sense.....something doesnt smell right with his thesis.................

Tue, 04/09/2013 - 18:54 | 3428786 andrewp111
andrewp111's picture

He thinks interest rates will go nominal negative.

Tue, 04/09/2013 - 18:58 | 3428809 kito
kito's picture

yeah, until the shitstorm hits the u.s. shores......i assume he is only talking about a temporary flight to perceived safety.......unless of course, america has no problems and will be fine.......wow, to think ive been worried.....thanks mr. bass....good to know all will be well in america....i can sleep again....................perhaps CNBC is correct after all!!!!

Tue, 04/09/2013 - 19:00 | 3428799 Dr. Engali
Dr. Engali's picture

Housing is nothing more than a trade Kito. He is talking his book just like anybody else who gets as much exposure as he does. You can bet your bottom Bernanky buck that he knows the long term structural problems the country faces, but for now housing is the trade.

Tue, 04/09/2013 - 19:05 | 3428832 kito
kito's picture

thats not what he is saying at all doc.....hes got a ton more money invested in mortgage insurance and bonds..which sound more like the long haul rather than a "trade"......

Tue, 04/09/2013 - 20:15 | 3429065 fonzannoon
fonzannoon's picture

Kito he literally owns a fortress, a ton of military weapons, stockpiles of gold, nickels etc etc etc. I am pretty sure he knows where housing is going. He is a fiduciary. So if he told everyone to do what he did, he would be out of business. He is trying to snake his way thorugh this maze of shit.

Tue, 04/09/2013 - 23:29 | 3429595 kito
kito's picture

you dont go long housing and long fortress..........

Tue, 04/09/2013 - 20:25 | 3429086 Pareto
Pareto's picture

FUCK that is totally swhat he is saying!!

Tue, 04/09/2013 - 22:48 | 3429446 Diogenes
Diogenes's picture

What terrorist? His firm invests 2 billion dollars for TPTB. He is part of the establishment. He can afford to speak his mind because everybody knows the dummies aren't listening anyway. But he has to be careful not to go too far. Like, he can rag on Japan as long as he glosses over gold, calling it a currency and moving on. Enough of a clue for the wise but not to give the game away.

Tue, 04/09/2013 - 19:17 | 3428888 BandGap
BandGap's picture

And therein lies your answer. All of us understand that KB knows what is going on. But in order for him to do business and make money he is not going to belabor the point or lean too far to one view. If you listen closely and watch his body language I think he knows damn well what is going on and what he is doing. None of us are perplexed, but he isn't going to come straight out and say anything.

I am wondering if the manipulations to this point require gold to be ONLY viewed as a commodity rather than a currency. I think TPTB NEVER want the idea that gold is a currency to enter the mainstream way of thinking.

 

Tue, 04/09/2013 - 19:34 | 3428940 creeko
creeko's picture

Well, I'm perplexed by why you're perplexed as to why he's perplexed.  I think you answered your own question in your last sentence.  :D

Tue, 04/09/2013 - 17:58 | 3428603 Surrealist
Surrealist's picture

Can someone please explain to me WHY anyone would want to OWN GOLD? Unless it is sitting in your vault, why? It's not like if the SHTF you will be able to go claim it and live happily ever after.

Tue, 04/09/2013 - 18:05 | 3428617 Silverhog
Silverhog's picture

When SHTF arrives, you will need a bicycle to ride to NY city and bang on some door yelling "Where's the hell is my Gold?"

Tue, 04/09/2013 - 22:00 | 3429350 ebworthen
ebworthen's picture

Yes, physical possession only.

If you have any, please sell to make it cheaper for me to buy more.

Wed, 04/10/2013 - 13:18 | 3432145 e-recep
e-recep's picture

gold is not for the SHTF moment. gold is for the period after things sorta stabilize.

Tue, 04/09/2013 - 18:00 | 3428606 EZYJET PILOT
EZYJET PILOT's picture

Um Karl, it's being suppressed by jpmorgan and hsbc, it's that simple mate. No bullshit analysis needed now.

Tue, 04/09/2013 - 18:10 | 3428630 Charles Nelson ...
Charles Nelson Reilly's picture

Are you referring to Karl Hungus from "Logjammin"? If so, he doesn't care cause he's a Nihilist.

Tue, 04/09/2013 - 18:01 | 3428607 jubber
jubber's picture

Wow, even the presenters sounded intelligent compared to CNBS

Tue, 04/09/2013 - 18:31 | 3428627 Dr. Engali
Dr. Engali's picture

CNBS stopped pretending like they were any kind of financial news network when they dropped the ticker symbols and started running the company names across the tape. It officially became entertainment for intellectually lazy non-thinking retards after that.

Tue, 04/09/2013 - 19:21 | 3428898 BandGap
BandGap's picture

Really, when the Biggest Retard of Them All, Cramer, gets an hour slot this shit was cooked.

The mindfuck was complete.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tue, 04/09/2013 - 18:03 | 3428614 natronic
natronic's picture

I think KB is partially right I think if they raise interest rates they blow it up quicker.  He didn't say if you leave it alone in 5 - 6 years it will naturally implode on it's own.

Tue, 04/09/2013 - 18:04 | 3428622 TJ00
TJ00's picture

Kyles a smart guy,  the only two things I haven't heard from him and would want to know is why he thinks Japan will go down first rather than Europe and why he thinks once it hits the fan why it won't blow up everything else as the markets all so interconnected via the derivatives market. Just like the Fall of Rome wasn't contained to Rome, or even Italy, but was the start of the Dark Ages, we've already seen the shitstorm that started with the US subprime market blowing up, now we're talking countries and continents, bigger bombs mean larger bangs and bigger craters, right?

Tue, 04/09/2013 - 18:52 | 3428781 andrewp111
andrewp111's picture

Maybe he thinks the Norks are going to nuke Japan.

Tue, 04/09/2013 - 19:23 | 3428908 Supernova Born
Supernova Born's picture

He said he expected a shooting war but he wouldn't say who he thought would be the adversaries.

Tue, 04/09/2013 - 19:21 | 3428901 BandGap
BandGap's picture

He better be right. If the EU goes first he might not score his bet on Japan.

Tue, 04/09/2013 - 22:53 | 3429472 Diogenes
Diogenes's picture

It's all in the math. Practically every country is in the hole and digging deeper but Japan started earlier and is farthest in the hole. Eurozone next and the US after them. The US may be in bad shape but Europe and Japan are worse.

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