Shorting US Treasuries 03/16/2010
February 4 (Bloomberg - the full story) -- Nassim Nicholas Taleb, author of “The Black Swan,” and Black Swan Theory said “every single human being” should bet U.S. Treasury bonds will decline, citing the policies of Federal Reserve Chairman Ben S. Bernanke and the Obama administration. It’s “a no brainer” to sell short Treasuries, Taleb, said. “Every single human being should have that trade.” Also, March 12 (Bloomberg –the full story ) Taleb joins Mohamed A. El-Erian, co-chief investment officer at Pacific Investment Management Co., in warning governments about rising public debt. Failing to carry out fiscal measures in timewould raise the possibility of governments seeking to eliminate excessive debt through inflation or default. Again, Nassim Nicholas Taleb warned: “We are facing an environment with a huge amount of debt,” he said in a speech in New Delhi today. “The next mistake is going to be overprint, which is going to be the way out for them, which is why I fear hyperinflation.” The U.S. budget deficit widened to a record in February as the government spent more to help revive the economy. The figures indicate the deficit this year will probably surpass the record $1.4 trillion in the fiscal year that ended in September. In a report published on Feb. 12, the IMF said a higher inflation goal may give central bankers more leeway… For anyone who is not a fan of Taleb and his VERY important theory: Check out the Wiki page about Black Swan Theory, and check out this essay which summarizes it well. CommentsLeave a Reply |
