Thursday, September 23, 2010
The "Elvis Trade" and the "Rip Van Winkle Trade"
Yesterday, I had a long talk with "Lenny", a prop trader living in New York City with his wife and 3 kids ("prop" traders trade for themselves risking their own capital. Folks that put their money where their mouths are tend to do much better research than your average Joe... and they tend to think... a LOT... about everything... doesn't mean that they (we) are right every time... it just means they are better at admitting when they are wrong... those without that skill do not have capital for long). Lenny is the gentleman that coined the phrase "The Elvis Trade"... "the US$ is fat, sweaty.... but still "The King"... to describe the US$ place as the world's reserve currency.
Lenny has abandoned The Elvis Trade. He is now thinking in terms of the Rip Van Winkle Trade (if any are unfamiliar with Washington Irving's Rip Van Winkle...).
"What if you knew you were going to fall asleep and wouldn't wake up for 5 or 10 years.... so you can't trade... where would you put your money"?
That was a rhetorical question...
It is painful to watch the unraveling of a presidency. BHO was the least prepared man for the demands and complexities of the presidency since... well, there might not be a "since". The MTVization of American politics has failed us miserably (not saying McCain would have been a whole lot better... what about Hillary, or Ron Paul, or Mitt Romney? No, we screwed up.
"Fundamental Attribution Error"
There is some good news coming out of this cluster f**&^#. The Liberal Media, in an attempt to throw BHO a life line is now putting out stories like this one. It seems somebody is beginning to recognize that we are investing in our presidents powers that simply do not exist. Duh! Well, Ms. Caroline Baum... I did not see you criticize BHO during the campaign when he claimed that his policies would create 6 million jobs, though, as you rightfully point out the government cannot create legitimate demand in the market place... only now that your champion is going down like a rock in a pond are you marshaling the forces of reality.
Better late than never.
Posted by The Short Story Man at 5:19 AM