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While Banks Are Being Shorted With Impunity On Euro Sovereign Debt Panic, Did Someone Forget About BlackRock?

Tyler Durden's picture




 

Why? Primarily because of this innocent statement by former R3 scion and former Lehmanite Rick Rieder, currently employed by the firm that ostensibly has more clout than even Goldman Sachs: BlackRock. From October 21 "BlackRock Inc. Chief Investment Officer Rick Rieder said the world’s biggest money manager remains a buyer of Italian government debt as European policy makers gather to address the region’s sovereign debt crisis. "Italy is attractive,” Rieder said during an interview on “InBusiness With Margaret Brennan” on Bloomberg Television. “As long as we are moving toward solutions, we think Italy is very reasonable at these levels. BlackRock, which manages about $3.66 trillion in assets, has also been buying debt issued by financial firms and high- yield bonds, Rieder said. As with the Italian bonds BlackRock has bought, the financial debt will benefit “as soon as you see stability,” Rieder said." Uh, Rick, you are marking to market right? Because Your P&L would be a 100% correlation to the following chart, which shows BTP prices since October 21.

Of course, BlackRock will find Italian bonds even more reasonable at the current levels...

 

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Mon, 11/07/2011 - 16:13 | 1854428 zer0hedge
zer0hedge's picture

Geez dude, not a lot of people would of picked that out. Seems like you are able in take in a lot of information daily AND remember it. Thank you.

I see there are blog posts labeled "Guest Post" every few days and wanted to know what it took to be able to have a guest post published here. I also see a section for contributors who seem to have their very own internal blogs on the site and am interested in getting one of those started for myself as well.

Mon, 11/07/2011 - 16:14 | 1854449 Unprepared
Unprepared's picture

To avoid confusion, you have to start by changing your screen name. Look for something more original, like ..... Tyler0Durden from that movie.

Mon, 11/07/2011 - 16:26 | 1854514 zer0hedge
zer0hedge's picture

Is the name why I'm getting the negative votes or is it that the answer to my question is just obvious? I browsed around for a bit and couldn't figure it out. Let's say I go ahead and change my name to " BoyScout" or something like that. What then?

Mon, 11/07/2011 - 16:35 | 1854540 infinity8
infinity8's picture

Let's have your resume, dude.

Mon, 11/07/2011 - 17:24 | 1854744 Shirley Wilfahrt
Shirley Wilfahrt's picture

I suggest "Dumphrey Blowfart" for your new user name. 

Mon, 11/07/2011 - 20:08 | 1855132 Best Satan in Town
Best Satan in Town's picture

Seems like your avatar is making a Wilfahrt.

Mon, 11/07/2011 - 19:12 | 1855027 Schmuck Raker
Schmuck Raker's picture

Go with "Canteen Boy"

Mon, 11/07/2011 - 19:43 | 1855084 Goldman Hufs
Goldman Hufs's picture

You could start by contributing relevant or witty comments to the articles posted.  Let people see that you are worth their attention.  Then down the road, very far down the road, you could include a link to your blog at the bottom of your posts.  If people will show up then you know you're doing something right.  If people don't then either take a step back to work on your craft or select a new career path.  I will say that you've dug yourself a pretty big hole by using your first comment to ask how you can ride this website's coattails to make money which was only compounded by choosing to take a username that you clearly know little about.

My advice would be to read the articles and more importantly the comments for awhile before jumping in the deep end.   

Mon, 11/07/2011 - 23:36 | 1855458 Ponzi Unit
Ponzi Unit's picture

Generous of you, Mr. Huf.

Mon, 11/07/2011 - 20:41 | 1855196 Newsboy
Newsboy's picture

First you must study the mystery of Tyler Durden, "The Ghost Who Walks"

Heh, heh, heh,heh....

Mon, 11/07/2011 - 16:12 | 1854432 Unprepared
Unprepared's picture

Until they hit a black rock

Mon, 11/07/2011 - 16:46 | 1854579 Western
Western's picture

Could happen this wednesday...

Mon, 11/07/2011 - 19:17 | 1855034 DarkestPhoenix
DarkestPhoenix's picture

Everyone knows this is the fate of the Black Rock:

http://www.youtube.com/watch?v=6SR0dI7PXX8 

Mon, 11/07/2011 - 16:46 | 1854580 Western
Western's picture

>

Mon, 11/07/2011 - 19:05 | 1855016 philipat
philipat's picture

What exactly is "Mark to market"?

Mon, 11/07/2011 - 23:36 | 1855462 Ponzi Unit
Ponzi Unit's picture

Wahlberg in underwear.

Tue, 11/08/2011 - 05:39 | 1855786 Overflow-admin
Overflow-admin's picture

It's expressing the fiat value in today's market fiat valuing. It is a common brainwash concept for saying "hey that contract has value! see how much people agree to pay for it today"

 

Not to mention that those people agreeing to pay for something that has not any intristic value are completely retarded assholes.

Mon, 11/07/2011 - 16:12 | 1854433 fuu
fuu's picture

"As with the Italian bonds BlackRock has bought, the financial debt will benefit “as soon as you see stability,” Rieder said".

 

I am already feeling pretty stabby.

Mon, 11/07/2011 - 16:12 | 1854436 JPM Hater001
JPM Hater001's picture

So I should cough up another couple grand to short Blackrock?

um, OK.

Mon, 11/07/2011 - 16:17 | 1854472 Unprepared
Unprepared's picture

You can't. And nobody dares selling puts on them of fear of reprisals.

Mon, 11/07/2011 - 17:29 | 1854760 dark pools of soros
dark pools of soros's picture

um, isn't it obvious they are just pumping to get rid of the ones they have??   

Mon, 11/07/2011 - 17:56 | 1854818 DonutBoy
DonutBoy's picture

+1  That's exactly what he's doing.  It's insane to believe for a moment that they would be talking up the price of something they're buying.

Mon, 11/07/2011 - 19:53 | 1855047 earleflorida
earleflorida's picture

blackrock inc. is more poweful than the squid  -

takes ~ 2years to get the facts via 'foia' -

 ask sanders, and paul

http://www.ny.frb.org/aboutthefed/BlackRock_Agency_MBS.pdf

http://www.ronpaul.com/congress/legislation/111th-congress-200910/audit-...

Mon, 11/07/2011 - 16:12 | 1854438 truont
truont's picture

Rick Reider just announced:

"Jeepers!  Italy bonds are now even *more* attractive than when I first bought them last month!"

Mon, 11/07/2011 - 16:28 | 1854518 css1971
css1971's picture

Buy the dip.

Italy can't be allowed to go under. While Greece can kill a couple of unstready banks, Italy would turn the entire Eurozone into a glassed wasteland for the forseable future.

Literally TBTF. i.e. minds will be concentrated.

 

Mon, 11/07/2011 - 16:50 | 1854597 chet
chet's picture

"Italy can't be allowed to go under"

But who is going to stop it?  And with what money?

Mon, 11/07/2011 - 17:47 | 1854792 css1971
css1971's picture

ECB. Why else would they put Draghi in? They'll devalue the Euro.

Mon, 11/07/2011 - 18:42 | 1854954 writingsonthewall
writingsonthewall's picture

....and the Germans? Are you suggesting they will stump up money for the bailouts and then have the spectre of inflation as a 'reward'?

 

If you think they're going to put up with that - then you don't know Germans.

 

Unless you're currently paying the mortgages of all the peeps in your street who are out of luck - then you're living in la la land.

Mon, 11/07/2011 - 21:32 | 1855266 sumo
sumo's picture

Germany and Italy could get together. like old times, and take Greece's gold.

That would give the can a kick.

Mon, 11/07/2011 - 23:40 | 1855467 Ponzi Unit
Ponzi Unit's picture

Gee, I trust Black Rock. Maybe I'll buy some EZ debt.

Tue, 11/08/2011 - 05:44 | 1855788 Overflow-admin
Overflow-admin's picture

Yeah debt is rising in value! Boooyaaaah! /sarcasm

Mon, 11/07/2011 - 16:12 | 1854439 TooBearish
TooBearish's picture

Blackrock is a long term investor....clearly

Mon, 11/07/2011 - 16:15 | 1854457 topcallingtroll
topcallingtroll's picture

That's what I say too when I miss the top.

Mon, 11/07/2011 - 16:53 | 1854617 Ghordius
Ghordius's picture

BlackRock the HenchMan
There Is More Than Money On The Table, IMO

Mon, 11/07/2011 - 17:30 | 1854762 matias100
matias100's picture

No sense to be a long term investor if the chances of seing your investment fail are that high. It's like having called people buying dotcom companies months before they were about to fail "long term investors" just because they didn't mind the risk involved. Italy is no Greece or Lehman and 2011 is no 2008!

Mon, 11/07/2011 - 16:14 | 1854446 Lord Welligton
Lord Welligton's picture

Between a blackrock and a hard place?

Mon, 11/07/2011 - 16:15 | 1854453 o2sd
o2sd's picture

They think they can move the market. Who knows, in this market they could be right. On the other hand, they could be the next Barings.

Mon, 11/07/2011 - 16:16 | 1854468 JPM Hater001
JPM Hater001's picture

April -2012 155 Puts are at an almost 12% premium.  All this and the VIX is at 30 and down for the day....

LMFAO

Mon, 11/07/2011 - 16:17 | 1854475 Lord Welligton
Lord Welligton's picture

 “as soon as you see stability,”

OK When will we see that?

Mon, 11/07/2011 - 16:18 | 1854476 BetTheHouse
BetTheHouse's picture

Italy is not attractive. Margaret Brennan is though.

Mon, 11/07/2011 - 16:19 | 1854484 Bay of Pigs
Bay of Pigs's picture

Viva Italia!

 

Mon, 11/07/2011 - 16:20 | 1854488 DogSlime
DogSlime's picture

If the Italian bonds are attractive, why not bet the farm on Greek 1 Year?

Yield is 236.9.  Blackrock should back up the truck on those.  You don't get returns like that every day :)

It will be fine when the "stability" arrives... soon... It will be soon, wont it?  Wont it?

Mon, 11/07/2011 - 16:26 | 1854489 monopoly
monopoly's picture

Geesh, if Blackrock blows up, it will make the blow up of Citi when it implodes look like childs play.

Mon, 11/07/2011 - 16:23 | 1854503 LongSoupLine
LongSoupLine's picture

"Uh, Rick, you are marking to market right?"

 

 

I'm certain Rick's response would be, "Show me anyone else that marks to market, or any regulator that requires it, and I'll consider it."

Mon, 11/07/2011 - 16:32 | 1854531 Dr. Engali
Dr. Engali's picture

Marking to market... that's a good one. We saw what happened the last time the had to be honest about the value of what's on their books.

Mon, 11/07/2011 - 16:33 | 1854533 FlyingDutchman
FlyingDutchman's picture

Grants is bullish though a few weeks ago.

Mon, 11/07/2011 - 16:33 | 1854536 Mark123
Mark123's picture

So, why would we take anything a hedge fund says publicly as anything other than a tactical move to benefit their trade?

 

I read this as a way to unload some bad trades on dupes.  The only way Italian debt will be stabilized is if the ECB really starts printing...I think we are still far from that decision.

Mon, 11/07/2011 - 16:35 | 1854545 Skyprince
Skyprince's picture

Mark to market?  What's that?  Oh yeah...some archaic accounting tool...used back in the "dark" ages...a time before our more inspired and creative accounting methods came on the scene.  Can't believe people used to actually do that.

 

Mon, 11/07/2011 - 16:36 | 1854546 Zola
Zola's picture

Blackrock = strong hand ?

Mon, 11/07/2011 - 16:37 | 1854552 orangedrinkandchips
orangedrinkandchips's picture

why do I have the lyric in my head........(sorry kid rock)

 

"MY NAME IS BLAAAAAAAAAAAAACK ROCK!"

Mon, 11/07/2011 - 16:50 | 1854599 I am a Man I am...
I am a Man I am Forty's picture

i was thinking more OAR

http://www.youtube.com/watch?v=qzMW1eSd7IU

 

Mon, 11/07/2011 - 16:38 | 1854554 ThisIsBob
ThisIsBob's picture

A banker talking his book on TV?  Who woulda thunk it?

Mon, 11/07/2011 - 16:42 | 1854562 ultraticum
ultraticum's picture

Would you loan to Italy at 6.7%?

Would you loan to Italy at 6.7% on 100 to 1 leverage and knowing you're big enough to be bailed out if it went sour?

Answers:  No and Yes.  Same investment.  Same yield.  Different side of bailout equation.

Mon, 11/07/2011 - 16:48 | 1854575 Mercury
Mercury's picture

Now we know who JEF's first (and maybe only) call was...

Mon, 11/07/2011 - 16:51 | 1854602 Amish Hacker
Amish Hacker's picture

"Italy is attractive... as long as we are moving toward solutions."

Um, Rick, I think I found the problem...

Mon, 11/07/2011 - 16:53 | 1854613 Scalaris
Scalaris's picture

“As long as we are moving toward solutions, we think Italy is very reasonable at these levels"

 

$3.66 trillion in assets and their reasoning still has the vagueness of a daily horoscope. Debt-on-sale fever I think it's called.


Mon, 11/07/2011 - 18:59 | 1854978 Leopold B. Scotch
Leopold B. Scotch's picture

Solution - OPM (pronounced opium) = Other People's Money to bail your asses out.  Again. And Again. And yet Again. and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and and again.

Mon, 11/07/2011 - 16:57 | 1854631 imaginalis
imaginalis's picture

BlackRock's off

Mon, 11/07/2011 - 17:04 | 1854666 mynhair
mynhair's picture

He also said buy shiny stuff.

Mon, 11/07/2011 - 17:25 | 1854749 lizzy36
lizzy36's picture

Averaging down is the new killing it.

Don't be sore....buy some more (until the K-Y kicks in)

Mon, 11/07/2011 - 17:31 | 1854755 slewie the pi-rat
slewie the pi-rat's picture

mark2market?

blackrock, if found to be doing god's work, will get the theological exemption

Mon, 11/07/2011 - 17:56 | 1854821 NumberNone
NumberNone's picture

Black Rock was a ship that was blown up on the tv series Lost.  Live imitating art.

http://lostpedia.wikia.com/wiki/Black_Rock

 

Mon, 11/07/2011 - 18:04 | 1854851 prophet
prophet's picture

Good thing they are not systemically important.

Mon, 11/07/2011 - 18:24 | 1854905 BennyBoy
BennyBoy's picture

Balance sheet fraud needs to expand.

Make it a growth industry.

Tue, 11/08/2011 - 05:34 | 1855782 Overflow-admin
Overflow-admin's picture

the financial debt will benefit “as soon as you see" STAB-ILL-EEEEETEEEEEE

Do NOT follow this link or you will be banned from the site!