1/2 Blind man called the entire real estate bubble !

[zanek]

Awesome fucking article. This guy is a laser guided money generating missile machine. You have to love America ! This dude called it from the beginning and showed the big boys how to do it, all while getting no credit and profiting hansomely.

http://www.vanityfair.com/business/...t-excerpt-201004?printable=true&currentPage=1


You all can thank me later for posting this ... fuckers

 

[zanek]

If this Vanity Fair article is true and the Matt Taibbi article is true, then that must mean that Goldman Sachs, JP Morgan, et al didnt plan the bubble and CDS schemes, but merely jumped on the bandwagon after they were alerted to it.

I guess its comforting knowing that the $1 billion TARP bailout was dreamed up on a Blackberry 2 days before it was presented, the big banks had no clue about the asset bubble they helped create and that congress doesnt understand the legislation they write.

God damn, we're all fucked ! This entire system is run by asshats who have no clue about what they're doing (on a macro level) and the synergistic effects of their decisions.

I am happy to be alive however, or that which I perceive to be consciousness.

 

[exaltedangel09]

what is that? that's no article, that's a whole book..
lmao
no thanks, I don't have 2 hours to kill lmao

 

[maxpi]

I worked with an Asperger's guy in the Electronics field. If he had any interest in finance he would have been doing things like what that guy did..

 

[dtrader98]

Fascinating article, thanks for sharing.

 

[Ghost of Cutten]

It's interesting how his investors kept attacking him for putting on a great trade, and then when it made them lots of money, they said nothing. Lol, typical human scum.

 

[ralph00]

This is a slightly expanded version of Burry's story that was in Greg Zuckerman's The Greatest Trade Ever.

 

[tmarket]

Just think what he could have done with two glass eyes.

Or perhaps it is these guys who had the glass eyes when they passed the Gramm-Leach-Bliley Act in 1999.

 

[makloda]

Quote from Ghost of Cutten:

It's interesting how his investors kept attacking him for putting on a great trade

Not at all surprising. It's called style drift. Investors paid him to be a long-biased equity value investor and all of a sudden he goes dabbling in credit instruments. That's not what they were expecting but he had them by the balls thanks to the lock-up.

Wouldn't you act surprised if you ordered a steak in a restaurant and the waiter serves you lobster (even if the lobster turned out to be delicious)?

 

[Ghost of Cutten]

Quote from makloda:

Not at all surprising. It's called style drift. Investors paid him to be a long-biased equity value investor and all of a sudden he goes dabbling in credit instruments. That's not what they were expecting but he had them by the balls thanks to the lock-up.

If you look at his investor letters, you can see that's not actually true - he said from the beginning of the fund that he would sometimes place shorts, so it was not a long-only proposition at any point.

Buying credit default swaps was effectively a "deep value" way of shorting housing, since downside was capped and the price was so far below what it should have been, so it was actually far superior to going short. His investors punished him for finding a great value way to do something they had already consented for him to do.