The Mother Load: A Guy CM Would Love!
I happened across a guy named Karl Denninger; perhaps I’m the last to discover him. He was calling AIG ("Arrogance, Insanity, and Greed", http://market-ticker.denninger.net/archives/110-Arrogance,-Insanity-and-Greed.html) to the mat almost a year ago.
Here is Karl’s latest post on those criminals we affectionatley call the Treasury Secretary and His sidekick "Robin" Kashkari: http://market-ticker.denninger.net/authors/2-Karl-Denninger .
Karl is in the intellectually advanced camp; thus, those of us who don’t have the econ lexicon and instinct down will find him a little difficult to follow–like reading a book with every other page missing. However, though he doesn’t bother to Martenson-ize his outrage such that it is accessible to the common man, it doesn’t mean you shouldn’t put him right next to Chris on your favorites menu…
I wish I had shorted AIG when Karl first explained the acronym-onious nature of their name: Arrogance, Insanity and Greed!
Buffet stupid or betting on a dollar collapse?
Karl sees Buffet’s writing of the puts on the S&P as a mistake. I see two possibilities:
1. Buffet made a huge mistake that will cost him 10’s of Billions;
2. Buffet sees a dollar crash coming and does not fear the nominal strike price of the options he wrote, as everything–including stock prices–will suffer U.S. dollar hyperinflation…
With Paulson’s move, MS and GS moved up a few days, then they were cut in half–just as Denninger anticipated…