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Precisely... That's why I don't (go on live TV, that is). I have no doubt that I would be certainly boring and probably incoherent. It's a skill to be able to "create" entertaining, interesting TV. It's an entirely different skill to take and manage risk, especially macro, especially...

Yep, all sounds reasonably accurate... However, my point still stands. Here's Rick being consistent with what he's been saying previously. Wrong or right, respect to him for that: "You can't show the inflation because the $3.4 trillion on the balance sheet, that's future inflation. But...

I don't think Hilsenrath really gets to talk a lot in this one, tbh. http://video.cnbc.com/gallery/?video=3000176036 They have a handy transcript, too.

And, returning to the original subject of this discussion, i.e. Rick Santelli. How can I have any respect for him when he doesn't even have the courage to stick to his guns? I am sure you have seen the exchange he's had w/Hilsenrath. Why is it that he suddenly has to say something like "I...

So you raise a few legitimate concerns here, Maverick... I agree that we are dealing with a system here that has a much larger number of degrees of freedom than the Fed has "control levers". But that's life, with all its complexities and imperfections. Unfortunately, as citizens of our...

Well, Maverick, to address your concerns about the methodology of these indices, I put my fine education to work (and no, it ain't British) and looked at the details, using the regional breakdown of the NAHB/Wells Fargo HOI. The raw data is available here, should you decide to check my...

Hold up a sec... For every iteration of your straddle selling exercise, the cost of the straddle is assumed to be based on the "IV" which is calculated based on the known path of the underlying over the next 7 days?

Right, what's the price you pay for a straddle like this?

Right, let's go through it... Simplistic exercise for a single straddle. Let's say your underlying is normally distributed arnd 0 with stdev of sigma. You're buying/selling a 1y straddle w/ strike 0. Is that a reasonable setup?

I wouldn't mind signing up to smth like that. But you'll need a critical mass of people, so that you cover a variety of assets. Like, in my case, I really don't care about all the potentially bright ideas arnd AAPL, say, as it's just not my cup of tea.

Did you read the bit at the end posted by BramJ, firstly?

B-S is valuing everything correctly. Your interpretation of it is what's flawed. Check out this thread: http://www.wilmott.co.uk/messageview.cfm?catid=4&threadid=89255

In this case, we will have to agree to disagree...

Hold on, I didn't say anything about the crisis and all the other issues you're raising here... My question is very simple. Do you think, during normal, non-crisis times, the American taxpayer should be lowering the funding costs of the large "supermarket" banks by allowing these banks to...

All the other issues you have raised aside, you want the US taxpayer to subsidise the strength and competitiveness of the US financial sector? And sure, yeah, FDIC-insured deposits represent a stable and extremely cheap source of funding for the banks. But this source of funding is cheap and...

1) if you google "money mkt fund reform", you'll find some info. Basically, due to old laws money mkt funds are (still) allowed to not mark to market. So they "guarantee" that their NAV never drops below $1. However, in reality the whole thing is a scam, since they have absolutely no way of...

You need to think about, amico. You'll see the light, I'm sure. You need to think about the difference between variance and volatility, given your context.

Yep, it's not a coincidence that the "magical factor" the OP is observing is 1.3ish :).

Yes, it's expected. You're not delta-hedging the straddle, innit?

Listen, Maverick, I don't disagree with your points above. I don't live in the US, so I can't exactly say that I feel your pain. Still, I visit and I know that American society has issues. Some of these issues are big. I don't want to live in America and I don't want my kids to live in...