Former Fed Member, And Guy Who Came Up With Idea To Sell Treasury Puts, Joins Morgan Stanley As Chief US Economist

Tyler Durden's picture

Morgan Stanley continues to demonstrate just how badly it lags Goldman. While the vampire squid is mostly known for sending its employees to run such places as the US Treasury, the New York Fed and the ECB (in 2 short months), Morgan Stanley has to be content with the inverse, i.e. hiring former Fed apparatchicks, in this case former long-time Fed advisor Vince Reinhart, who among other things is best known for collaborating with Ben Bernanke on discovering that Operation Twist does not work, and, of course, proposing the currently overt Treasury manipulation operation (for those times when QE is not sufficient) which involves selling puts on Treasury futures (link).

Full press release:

Morgan Stanley (NYSE: MS) announced today that Vincent Reinhart will join the firm as Chief U.S. Economist in New York, effective October 1.


Mr. Reinhart joins the firm’s Economics Research team from the American Enterprise Institute in Washington, where he was a Resident Scholar. From 1990 to 2007, he held senior positions at the U.S. Federal Reserve, including Secretary and Economist of the Federal Open Market Committee.


“Vincent has been an important voice in global economic debates for years, and we welcome him to Morgan Stanley,” said Ted Pick, Global Head of Equities. “He complements a talented global team of economists and strategists at the firm, and we look forward to his thought leadership and insight.”


Added Ken deRegt, Global Head of Fixed Income Sales and Trading: “We are extremely pleased to welcome Vincent to Morgan Stanley. His decades of experience at the Fed, along with his esteemed scholarship on a variety of macroeconomic issues, will be a tremendous asset to our clients.”


Mr. Reinhart will be responsible for the firm’s analysis of the U.S. economy.

He will lead a team that includes U.S. Fixed Income Economist and Managing Director David Greenlaw.

As a reminder, here is Vince Reinhart's contribution to efficient markets: the Fed's complete blueprint on how to manipulate stock and bond markets. We hope comparable manipulation techniques finally allow Morgan Stanley to generate at least $1 in profit from its rates desk after 2+ years of losses.


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Robslob's picture

But it would still be profit in fiat = net fail

Mike2756's picture

even they have to hedge. use the proceeds to buy some calls on fxf?

MillionDollarBonus_'s picture

They can use the proceeds to buy more treasuries in order to bid interest rates lower still. This kind of innovation always puts a smile on my face. It reminds us why only educated experts are fit to run the US economy. While average investors panic during these hard times, our cool-headed federal reserve officials are quietly and modestly solving our economic problems. These heroic financial planners rarely get the praise they deserve from spoiled brat libertarians, but I'm not afraid to congratulate them for the exceptional sacrifices they have made for this country. You may not thank them now but our children will thank them in the years to come.

Mike2756's picture

won't work, they have to hedge currency risk now, lol. maybe gld calls?

MillionDollarBonus_'s picture

More like gold puts given the giant double top and downside break from the penant.

SheepDog-One's picture

Same old BS, print money to buy treasuries while selling puts on the treasuries youre pumping...they should be hanged.

Ruffcut's picture

I'm sure he was hired for his leadership ability and being a team player.

Belarus's picture

which involves selling puts on Treasury futures (link).

I'm convinced some of these assets are packaged into HFT up-bid order books to send shit higher on shit hit fan days. 

ZeeGerman's picture

baby steps, Benjamin Button style!

Gandalf6900's picture


oogs66's picture

weren't they the ones who hired dinallo when he left his prior job as insurance regulator?

Quinvarius's picture

I like how they have all these crazy compicated ways of using their printing presses to generate paper profits for the crony crowd and themselves.  That is what it all boils down to.  They make a crazy trade and then print money to make it work.  How can anyone with access to any information on the system take our money seriously? 

LongBallsShortBrains's picture

"How can anyone with access to any information on the system take our money seriously? "

As long as you can trade it for hookers and blow, it will be treated seriously.

dizzyfingers's picture

Things go from worse to worser. When does it stop?

Gubbmint Cheese's picture

Aaaaand we are green.. Phew ! Can't have the US market falling now can we? That just wouldn't do!

SheepDog-One's picture

Right, cant have the market fall when they know people within days will realize there is no bailout QE3 for stocks.

DUNTHAT's picture


Shineola's picture

Party on, Slaves!    BTW, who is on Dancing with the Stars this week?

SheepDog-One's picture

What was the rumor in the last 10 minutes which sent the DOW from -40 to +70?

QE3 is DOA.

PulauHantu29's picture

Bring back Bernie!

moxia19's picture

From 1968, the north face sale shop became known as north face brand from a little shop, at that tiem the north face sale store retails high-performance climbing and backpacking equipment.

moxia19's picture

Warmly welcome you to my true religion jeans on sale online store to purchase cheap true religion jeans in excellent detail designs.

moxia19's picture

Now is the best time of year to buy cheap true religion jeans from true religion outlet shop or true religion sale online store,they are offering the best price for you now.

ytpl22's picture

Gangaur Realtech is a professionally managed organisation specializing in real estate services where integrated services are provided by professionals to its clients seeking increased value by owning, occupying or investing in real estate.

property consultants

residential property in dharuhera

bestech grand spa

park view ananda