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The mechanics are pretty simple. Let's assume a $100 face value, 0% interest rate bond for simplicity sake that returns principle in a year when it matures. If you can buy the bond today for $20.87 and you get $100 in a year when it matures then viola, you just got a 481% return. Of course as...

The order in which you do it matters for this. You have to first sell the box, then perform the activity that allows you to effectively duplicate a margin loan. You can't do it in reverse as you indicated.

Yep, sell as wide a box as you can on SPX options on the COB. They quote way wider than you'd expect for exactly this purpose. You end up paying just above treasury rates baked into the slightly lower price you get for the box then it will give you at expiration. Of course as a box it has no...

Sell a box, you'll get pretty close to that.

He's got it in his head that supply chain disruptions absolutely, positively can't cause global economic issues because no recession in the past has been caused by a supply chain disruption. And he insists on believing that the death rate is what matters because something like this can only...

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What is the anti-inflammatory part?

There are a whole raft of taxes, most notably U.S. individual income tax and capital gains tax, that tax the first $X at a low to zero percentage, from $X to $Y at higher percentage, from $Y and up at still higher percentage, for example. We call that a progressive tax schedule. It's also what...

Yeah, but you've got to convince them to let your germy ass in to their little quarantined corner of the world. I'm thinking you'd need to arrive with a lot of booze...

To the contrary, a large portion of the tax system in the U.S. is progressive, starting with the income tax front and center! Not to mention a myriad of laws, incentives for bidding on govt contracts.....

Point being none of that matters at all. It's likely the damage has already been done to the point that a magic cure that we could instantly roll out to everyone in the world tomorrow wouldn't impact the market downturn caused by reversing the direction that positive feedback loop is going. Like...

To turn lemons into lemonade....think about market distortions. They produce opportunity. If this happens, which I think is highly unlikely but let's assume it does, it will be a massive market distortion. What are the opportunities that presents? What are the opportunities that presents to a...

There isn't any serious indication anywhere that this virus is somehow difficult to develop a vaccine for or vaccine resistant. Most people managing any significant amount of money are operating under the assumption that a vaccine will be developed and that this won't even be a thing this time...

Actually I was trying to explain that even if you only care about your own self interest it's not in your self interest to attempt to convince others by complaining about how it impacts you....this being a democracy and all and our interest group being pretty small, miniscule really.

I've seen this sentiment quite a bit and my pushback is that it inherently assumes that the denominator will remain constant. The reason the market is selling off is because quarantines and trade restrictions and people not able to go to work has serious financial implications to earnings for a...

"Don't do this because it screws me and my very tiny part of the electorate who already aren't viewed very sympathetically anyway" isn't the optimal way to achieve what you want in a democracy. It's a bad idea for a lot of the broader impacts it will have on the market and economy that could...

Again, it's basic macro that when you believe you have great uncertainty ahead, a backward looking, lagging indicator like the jobs report is of almost no value in predicting what will happen going forward. So it won't have any impact, nor should anyone with any background in this expect it to...

Given that: a. Unemployment numbers are collected on the week that includes the 12th of the month which is before there would have been any impact to the U.S. economy from this, and b. We don't lay people off immediately in response to supply chain disruptions even if we knew for certain that...

I love this kind of stuff, thanks!

So you make a claim in a conversation on a subject where there are legitimate questions and then you act disgusted when those in the conversation ask you to quantify it? You may very well be right, but with that kind of attitude who would want to ever interact with you?