Some Sunday thoughts from the CIO of One River Asset Management, whose latest Weekend Notes starts off in traditional Eric Peters style, namely a mockery of the Fed…
‘Wait, that’s not even part of your model?’ asked the private sector, imagining itself in the presence of the Fed. ‘You seriously don’t even consider the crushing weight of the pension avalanche that is bearing down on us?’ And the governors shrugged.
‘You don’t even take into consideration what’s happening in China?’ Silence. ‘Do you even understand today’s world? You’re all so old, you’re from a different time.’ They returned to their spreadsheets, moving dots around, what fun.
‘Pensions and China are the only two things that matter!’ Silence.
‘Let me get this straight,’ said the private sector, collecting its composure. ‘You’ve got this thing called China, and you don’t understand that?’ The governors nodded.
‘And you’ve got this other thing which is my pension liability, and you’re not modelling that?’ Each nodded.
‘And I’m supposed to have confidence in Fed policies?’ asked the private sector. The governors put down their crayons, lifted their dot plots, displaying them proudly.
And the private sector quietly started selling its assets to buy Amazon stock, which has none of these problems.
… Continues with some additional thoughts on credit math…
This post was published at Zero Hedge on Jul 23, 2017.