Taleb: "Every Single Human Being Should Short US Treasurys"

Thursday, February 04, 2010 , , , , 1 Comments

Holy crap.

Bloomberg (h/t WCV and LOLFed, who beat me to it):

Nassim Nicholas Taleb, author of “The Black Swan,” said “every single human being” should bet U.S. Treasury bonds will decline, citing the policies of Federal Reserve Chairman Ben S. Bernanke and the Obama administration.

It’s “a no brainer” to sell short Treasuries, Taleb, a principal at Universa Investments LP in Santa Monica, California, said at a conference in Moscow today. “Every single human being should have that trade.”

Taleb said investors should bet on a rise in long-term U.S. Treasury yields, which move inversely to prices, as long as Bernanke and White House economic adviser Lawrence Summers are in office, without being more specific. Nouriel Roubini, the New York University professor who predicted the credit crisis, also said at the conference that the U.S. dollar will weaken against Asian and “commodity” currencies such as the Brazilian real over the next two or three years.

The Fed and U.S. agencies have lent, spent or guaranteed $9.66 trillion to lift the economy from the worst recession since the Great Depression, according to data compiled by Bloomberg. Bernanke, who in December 2008 slashed the central bank’s target rate for overnight loans between banks to virtually zero, flooded the economy with more than $1 trillion in the largest monetary expansion in U.S. history.

“Deficits are like putting dynamite in the hands of children,” Taleb said in an interview with Bloomberg Television. “They can get out of control very quickly.”

Speaking of dynamite in the hands of children, I believe a certain Jr Jr Deputy Accountant will be getting some T-bill short sales for his 7th birthday this year, as well as an expanded physical gold portfolio and a few BRIC standards just to round out his investments. He might be pissed for the short term but JDA favors the big picture and in the long run, the little man will thank Mommy for having his back. While we're sitting on a beach in Nicaragua watching the fire burn out somewhere up North, naturally. See you bitches in the sand!

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


beebsblog said...

Being short is so un-American. After all, I can hear echoes of Timmy the tax cheat "I believe in a strong dollar." Didn't the chinese students laugh at his pronouncement?

chemist, not economist.