"Your Alpha Is Burning" - Fighting Greek Fire with Fire: Volatility, Correlation, and Truth

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Fri, 10/07/2011 - 11:01 | 1749672 oogs66
oogs66's picture

keep the articles coming...the rally is fading!

Fri, 10/07/2011 - 11:36 | 1749777 scatterbrains
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What's going on with derivatives trader MF Global ?  stock continues to swan dive despite the delusional stock rally.

Fri, 10/07/2011 - 12:45 | 1750022 Harlequin001
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This article is just complete and utter bollocks..

WTF is he on about, arson?

Fri, 03/16/2012 - 04:50 | 2261087 glenn17
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tony fawaz

Fri, 10/07/2011 - 11:06 | 1749676 Spitzer
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Imagine there was a financial crisis that involved similar circumstances to the one we are dealing with right now and we knew how it ended. There would be no inflation vs deflation debate because we would have the answer right in front of us. .........Well guess what....There was one and we know how it ended. For some reason though, every econo-financial pundit, no matter what school of thought they are from, have forgotten about it. Wether it is Gonzalo Lira, Peter Schiff, Jim Rogers, FOFOA, Max Keiser, Tyler Derden at ZeroHedge or the vast misinformed crew of keynesians that spew their nonsense all over the  financial world, not one of them has ever mentioned the...........http://freegoldobserver.blogspot.com/


Fri, 10/07/2011 - 11:47 | 1749814 Caviar Emptor
Caviar Emptor's picture

It was only "forgotten" because the Fed eased and flooded like never before and brought on the mania of 1998-2000.

It is being mentioned by some. And in Asia it's not been forgotten at all. The fear is that China will go down the same road. We'll see

Fri, 10/07/2011 - 11:58 | 1749847 Spitzer
Spitzer's picture

Greenspan actually raised rates at the time which attracted the capital back to the US from Asia.

As the U.S. economy recovered from a recession in the early 1990s, the U.S. Federal Reserve Bank under Alan Greenspan began to raise U.S. interest rates to head off inflation. This made the U.S. a more attractive investment destination relative to Southeast Asia.

As for China...

The creditor Yuan is pegged to the debtor dollar.

It is still a DEBTOR pegged to a CREDITOR but the roles are reversed which makes it even worse for the debtor. The Yuan is pegged to the dollar but the Yuan is the creditor. The Yuan holds the upper hand. The Yuan can make a run out of the dollar which would cause a 40 60 or 80% fall in the dollar and an equivalent rise in the Yuan.

Fri, 10/07/2011 - 11:17 | 1749725 Roy Bush
Roy Bush's picture

It's designed to default.  But first the population will be impoverished and assets will be bought for pennies on the dollar.

Fri, 10/07/2011 - 11:19 | 1749735 Hansel
Hansel's picture

Are we winning yet?

Fri, 10/07/2011 - 11:21 | 1749736 buzzsaw99
buzzsaw99's picture

Hath not an alpha fund fees, managers??? ...fed with the same kosher spam, hurt with the same weapons, subject to the same diseases... If you prick us, do we not bleed negative alpha? If you tickle us with bonuses, do we not laugh? If you poison us with toxic assets, do we not divest? And if you wrong us, shall we not revenge??? [/merchant of venice]

Fri, 10/07/2011 - 11:39 | 1749788 Stumpy
Stumpy's picture

I've discovered a HUGE arbitrage between Barclay's XXV and the inverse of VXX. Compression ahead. Take a look. I'm no financial expert, but I am an engineer.


Fri, 10/07/2011 - 11:51 | 1749826 Stumpy
Stumpy's picture

Man, what type of fucked up data was I served by Yahoo Finance? VXX 11.21 @ 2010-11-08, VXX 45.39 @ 2010-11-09.

1: 4 Stock Split... Never mind, false alarm.

Fri, 10/07/2011 - 12:55 | 1750078 Putty
Putty's picture

Yahoo Finance.  ha.

Fri, 10/07/2011 - 11:41 | 1749794 Piranhanoia
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"A wildfire is blind and cruel"   I guess systematic looting and the destruction of your world by the folks that claim to own it could metaphor into a wildfire.  But it is not blind, and it is cruel by design.   I should read some more of Papa's work to get the bad taste of spoiled adjectives out of my craw.   


Fri, 10/07/2011 - 11:50 | 1749823 frenchie
frenchie's picture

it is also "vive LA volatilité" in french

Fri, 10/07/2011 - 11:53 | 1749828 The Big Ching-aso
The Big Ching-aso's picture

There are 'safer' havens than others.    All I know is that if you can't dilute something with the stroke of a keypad then that other something when it's readily tradeable between humans, and can be easily transported for other subsequent trades, becomes one of those havens.      Everything else is too much complex BS.

Keep it simple.   But don't be stupid.

Fri, 10/07/2011 - 11:53 | 1749831 Caviar Emptor
Caviar Emptor's picture

At this point, as a result of our failed finances, the looting of our wealth and our failed leadership, we've all responded by lowering our expectations. If we lower expectations enough, what's left of our economy will be sure to meet those expectations. Mission accomplished. That was easy. 

Fri, 10/07/2011 - 11:55 | 1749835 Loukanika the r...
Fri, 10/07/2011 - 12:42 | 1750026 Fozzy Slippers
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Jubilee or off with their heads?

Wed, 11/09/2011 - 12:28 | 1861121 karmete
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