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Japan Is Never Going To Default, And The Kyle Bass Trade Will Be A Disaster – Business Insider

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Kyle Bass’s Most Famous Trade Is A Disaster, And It Is Never Going To Work Out Joe Weisenthal | May 20, 2012, 6:42 AM | 23,775 |   Kyle Bass was one of the handful of hedge funders who made a fortune betting against housing during the subprime bust, and since then hes been stalking his next big “career trade.”For years now, his big target has been Japan, a country with a debt-to-GDP ratio of over 200% and a shrinking/aging population. Hes convinced that its only a matter of time before the country implodes in a massive sovereign debt crisis … Read more

Greece A Result Of A Greedy Goldman? Nahhhh…

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Back in 2001, Greece had a problem.  The struggling country’s debt levels were simply too high to qualify for admittance to the European Union.  While these regulations were in place to protect the structure of the European economy, Goldman Sachs was more than willing to step in with a timely loan which provided the necessary liquidity to hide the nation’s accumulated debt load.  Essentially a perfect solution for both Greece and Goldman, here is the situation illustrated by Bloomberg: “The Goldman Sachs transaction swapped debt issued by Greece in dollars and yen for euros using an historical exchange rate, a mechanism … Read more

Einhorn Ends 2011 Just Over +2%, Closes FSLR Short, Warns On Asia, Mocks “Lather. Rinse. Repeat” Broken Markets

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Anyone wondering why FSLR just jumped, it is because as was just made known, David Einhorn’s Greenlight has decided to close its FSLR position, after bleeding that particular corpse dry. “Our largest winner by far was our short of First Solar (FSLR) which fell from $130.14 to $33.76 paper share and was the worst performing stock in the S&P 500.” Einhorn also announces that he was among the “evil” hedge funds who dared to provide market clearing transparency and buy CDS on insolvent European governments: “We also did well investing in various credit default swaps on European sovereign debt.” As … Read more

Six Reasons to Avoid Japan In 2012

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Guest post: Ron Rowland One of the best ways to make money in ETFs is to not lose money.  I know it sounds obvious, but I can assure you that many people don’t get this key point.  So if I can help you do that, then I count it as a success.  And today I’ll talk about an ETF category I think you should avoid in 2012: Japan. What’s Wrong with Japan? I’ve been to Japan many times.  I love the country and the people.  Yet I have to tell you that now is not the time to invest in … Read more