Friday, July 30, 2010

Sounds LIke Common Sense

I follow Nassim Taleb via Twiiter. While on the subject of Twitter, for those interested you can now follow me via Twitter by clicking the link on the upper right of the blog but I digress.

I received a tweet today from Nassim Taleb highly acclaimed author of the great read The Black Swan: The Impact of the Highly Improbable.

The tweet simply said this:

"Forget 2300 p of reg; problems are cured at the source with the RISK GOLDEN RULE: Captains go down with ships; all captains and all ships".

Ding Ding Ding we have a winner !

Regular readers know this policy, stated so eloquently by Mr. Taleb is one I have advocated since day one! Sounds like common sense to someone with a room temperature IQ like me but for some strange and unknown reason this logic escapes the MBA's and PhD's from Harvard and Yale. Oh yeah... Princeton too, can't forget those moulders of fine leaders.

You cannot tell me Nassim is the only one out there who gets this.

I will take it a step further Nassim, just so we can get some trust and integrity back in these markets, with a re-introduction of The Consequence..... The Guillotine.

Do you really believe Phil Gramm, Chris Dodd, Hank Paulson, Angelo Mozilo, Bob Rubin, Larry Summers, Franklin Raines, Bernie Madoff et al. -the list can go on for page after page -would have done the things they did had they know The Consequence.

The malfeasance, the insider trading, the duplicity, the back room deals, the absolute gotta get mine free for all fostered under the Greenspan Put. Banished forever would be the fine of $x millions while 25, 50, or 100x millions were reaped from the scam.

Oh yeah, before I forget.... that phrase "neither admitting nor denying wrongdoing" while burned into one's DNA while attending Harvard, Yale or Princeton would finally be banished from our lexicon.

Do you see what happens here? One little line from Taleb this morning gets my blood absolutely flowing and me on yet another rant!

At least it flushes out the arteries.

Before I forget, keep your eye on the bonds!

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $60.30
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $60.50
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $42.45
Long 1 unit Ultrashort Real Estate ticker SRS @ $49.10
Long 2 units Direxion Tech 3X Bear ticker TYP @ $10.52
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $22.52
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 92.15 stop @ $92.15
Long 1 unit ishares Barclays 20yr Treas ticker TLT @ 93.48 stop @ $93.48
Long 1 unit Ultrashort Gold ticker GLL @ $41.25 stop @ $41.19
Short 1 unit Apple ticker AAPL @ $275.20 stop @ $266.50

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