Gordon T. Long’s article “Bernanke’s QE(x) Box”

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    Posted: 22 April 2011 10:48 AM

    No market to trade on Good Friday and so may as well devote some time to game theory via http://www.philstockworld.com/2011/04/21/bernankes-qex-box/

    Anyway the article is important if you’re interested in how Fed policy will effect forward-looking markets and why people like myself are getting ahead of the curve by lightening up on the risk trade (meaning were selling our unhedged long positions largely through options in anticipation for a broad market sell-off caused by rate hikes that are expected to settle in with the end or coming end of QE2).

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    Black Swan Counter: 9 (Banks need money, Jobs needs a break, Geithner has no plan, Cuomo’s grandstanding, .Gov needs a hobby, GS works for money, flash crash, is that bubbling crude?).

    For those who look, a flash allows one to see farther.

         
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    Posted: 22 April 2011 11:39 AM #1

    Eric Landstrom - 22 April 2011 01:48 PM

    No market to trade on Good Friday and so may as well devote some time to game theory via http://www.philstockworld.com/2011/04/21/bernankes-qex-box/

    Anyway the article is important if you’re interested in how Fed policy will effect forward-looking markets and why people like myself are getting ahead of the curve by lightening up on the risk trade (meaning were selling our unhedged long positions largely through options in anticipation for a broad market sell-off caused by rate hikes that are expected to settle in with the end or coming end of QE2).

    Eric…scary stuff.  Sounds like a page right out of the book Aftershock.

    I have my wheelbarrow ready to load up with dollars to buy a loaf of bread.

    It is stories like these that make me wish I was part of my Mom & Dad’s generation.