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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.

 

 

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Tue, 09/13/2011 - 09:31 | 1663278 Robslob
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But it would still be profit in fiat = net fail

Tue, 09/13/2011 - 09:43 | 1663302 Mike2756
Mike2756's picture

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

Tue, 09/13/2011 - 09:58 | 1663333 MillionDollarBonus_
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.

Tue, 09/13/2011 - 10:00 | 1663351 Mike2756
Mike2756's picture

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

Tue, 09/13/2011 - 10:21 | 1663469 MillionDollarBonus_
MillionDollarBonus_'s picture

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

Tue, 09/13/2011 - 10:05 | 1663362 Leopold B. Scotch
Leopold B. Scotch's picture

God Bless Sarcasm.

Tue, 09/13/2011 - 09:57 | 1663336 SheepDog-One
SheepDog-One's picture

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

Tue, 09/13/2011 - 09:35 | 1663288 Ruffcut
Ruffcut's picture

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

Tue, 09/13/2011 - 09:44 | 1663304 Belarus
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. 

Tue, 09/13/2011 - 09:48 | 1663310 ZeeGerman
ZeeGerman's picture

baby steps, Benjamin Button style!

Tue, 09/13/2011 - 09:49 | 1663315 Gandalf6900
Gandalf6900's picture

FASCISM BITCHEZ!!!!

Tue, 09/13/2011 - 09:49 | 1663316 oogs66
oogs66's picture

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

Tue, 09/13/2011 - 09:51 | 1663320 Quinvarius
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? 

Tue, 09/13/2011 - 10:13 | 1663407 LongBallsShortBrains
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.

Tue, 09/13/2011 - 09:52 | 1663323 dizzyfingers
dizzyfingers's picture

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

Tue, 09/13/2011 - 09:56 | 1663328 SheepDog-One
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When the people stop complying.

Tue, 09/13/2011 - 13:58 | 1664438 andybev01
andybev01's picture

worse-est.

Tue, 09/13/2011 - 09:56 | 1663331 Gubbmint Cheese
Gubbmint Cheese's picture

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

Tue, 09/13/2011 - 10:15 | 1663422 SheepDog-One
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.

Tue, 09/13/2011 - 10:16 | 1663347 DUNTHAT
DUNTHAT's picture

IS IT JUST ME OR IS THEIR AN UN-NERVING PATTERN DEVELOPING IN ALL THESE PAPERS, ALL OF THEM IN THE 2003-2004 TIME PERIOD, THAT ARE DEALING WITH TODAY'S ISSUES OF 2011, SEVEN YEARS LATER.  ALMOST AS IF THEY KNEW AHEAD OF TIME WHAT WAS IN STORE.

Tue, 09/13/2011 - 10:07 | 1663372 Shineola
Shineola's picture

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

Tue, 09/13/2011 - 10:16 | 1663430 SheepDog-One
SheepDog-One's picture

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

QE3 is DOA.

Tue, 09/13/2011 - 10:58 | 1663652 PulauHantu29
PulauHantu29's picture

Bring back Bernie!

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