Business

Over the years, Hayman Capital's Kyle Bass has gotten heat for his trade recommendations, with "virtual portfolio" pundits accusing the Texan of being a "one-hit wonder" ever since his subprime trade, with little else to show for his repurtation.

That is no longer the case: after making a strong case over the past 3 months that Texas-based REIT United Development Funding IV is nothing but a Ponzi scheme - a name he has been short -  the stock tumbled, jumped, and then tumbled again.

Three days ago, we reported that just days after Goldman's technical team told clients that Gold May Soar "Much Higher Over Time", Goldman's head of commodities released a note, titled appropriately enough "Nothing to Fear but Fear Itself", urging clients to short gold

In a section, titled "time to sell the fear barometer, Currie said the following:

It's definitely different this time...

The 2008 analog lines the current trajectory up with August 2008 right after Treasury Secretary Paulson told the world reassuringly that:

"Our economy has got very strong long-term fundamentals. And you know, your policy-makers and regulators here - we're very vigilant."

And we all know what happened next...

h/t @ChrisBrady12

Could never happen again?

Yeah you're probably right...

Just as we first warned in September 2013, so it seems the view of "helicopter money" being imminent is now becoming more mainstream as the powers that be slowly propagandize the benefits.

If dropping interest rates to zero was Unorthodox Policy #1 and QE was Unorthodox Policy #2 then it seems very possible Helicopter Money will be Unorthodox Policy #3. Whether this new level of expansionism, with all the hopes and theoretic power it is supposed to hold, can generate growth of the red-hot rather than lukewarm kind remains to be seen.

 

Two weeks ago, before the market was shaken by the most recent bout of volatility, one which led to the dramatic outcome of Birdgewater's Pure Alpha suffering two consecutive 5% weekly losses as reported earlier, we received a tip from an insider that as a result of substantial losses at Citadel's internal hedge fund Surveyor, Ken Griffen's organization was not only laying off numerous portfolio managers and traders, but that the unwinds of the associated portfolios were a direct reason for the selloff suffered at the beginning of the month.