come in strange packages. You take a soft-spoken
intelligent hedge fund manager (already a weird
outlier occurrence) and you think:
this guy could hasten the crash that we all need.
He'll be doing so because casino banks are
run by short-sighted, government-sponsored
idiots. and he'll make billions on it.
ah, natural justice reaches into the bankster
misery factory.
sh-ting: Biz
insider
KYLE
BASS: One Of The Biggest Banks In The World Wants Me To Close My Japan Trade
Matthew
Boesler | Mar. 14, 2013, 3:11 PM |
4,999 | 11
Prominent
hedge fund manager Kyle Bass – whose big trade right now, known as the
"widowmaker" in market circles, is betting against Japanese
government bonds – gave a talk at the University of Chicago last week.
…
The
AIG of the world is back. Here's what I mean by that.
I
have 27-year-old kids selling me one-year jump risk in Japan for less than one
basis point. $5 billion worth at a time.
You
know why? Because it's outside of a 95 percent VaR. It's less than one year to
maturity. So guess what the regulatory capital hit is for the bank? It rhymes
with "hero." Right?
And,
if the bell tolls at the end of the year, the 27-year-old kid gets a bonus. And
if he blows the bank to smithereens, ah. He got a paycheck all year.
We're
right back there. I mean, the brevity of financial memory is only about two
years.
…
And
it's happening in huge size. You know, huge. We bought $0.5 trillion worth of
these options.
Interestingly
enough, recently, one of the biggest banks in the world called me and asked me
if I would close my position. That was an interesting day for us. That happened
to me in 2007, right before the mortgages cracked.
They
said, "You know, we ran some new risk tests."
And
I said, "Really?"
And
they said, "Yeah, you know, our new stress scenario is a little bit more
punitive than the last one."
And
I said, "Well, what is it?"
And
he says, "We don't want to share our proprietary secrets of our bank with
you."
And
I said, "OK, then I'm not closing it."
