Global Market Comments
August 7, 2014
Fiat Lux
Featured Trade:
(WHY I?M COVERING MY STOCK SHORTS),
(SPY), (SPX), (HYG), (TBT), (TLT),
(AN AFTERNOON SURPISE IN SWITZERLAND)
SPDR S&P 500 (SPY)
S&P 500 Index (SPX)
iShares iBoxx $ High Yield Corporate Bd (HYG)
ProShares UltraShort 20+ Year Treasury (TBT)
iShares 20+ Year Treasury Bond (TLT)
Exhausted, and running on fumes, I returned to Zermatt from my assault on Monte Rose, at 15,203 feet, the highest mountain in Switzerland.
You know, the one where I hung by a rope on a cliff face with one hand, while sending out a Trade Alert on my iPhone 5s to short the S&P 500 with the other?
The desk clerk looked particularly grim. He said the city government had been looking for me, and that I better get down to their offices right away.
I thought, what could they possibly want?
It has been 25 years since I had been a director of the Swiss Bank Corporation, and certainly the statute of limitations had long since run out on anything that transpired there. Yes, they later got taken over by the Union Bank of Switzerland, which then fell on hard times (poor Marcel!).
As for all those Nazi gold bars, I had nothing to do with it! That was another department; although I did think the Third Reich?s stamped gold eagles did look kind of cool. Besides, that too, was resolved in a court settlement a decade ago.
There was that relationship with the teenaged girl at the Youth Hostel. But that was in 1968, and she was older than me.
So what could the authorities in Zermatt possibly want?
Then my mind set to racing. If I caught the 8:00 AM cable car at the Kleine Matterhorn, I could be over the Italian border by 10:00 AM. I would thus be treading the path of refugees for time immemorial, although going in the opposite direction.
Ten minutes later, I was at their offices on Bahnhoffstrasse, still wearing my backpack, mud splattered, and my hair standing straight up. ?My goodness, where have you been? We?ve been looking all over for you!? cried the official.
I answered that I had been climbing the Monte Rose, and then asked ?Why??
?The mayor wants to give you the keys to the city. It seems you have been visiting Zermatt longer than almost anyone. But you have to get over to the Zermatterhoff Hotel. The ceremony starts in five minutes!
Five minutes! I stumbled, out of breath, into the elegant reception room at Zermatt?s premier five star hotel. Not only was the mayor there dressed in all of his finery, so were the entire city council and a number of guests.
Gold leaf rimmed the cornices and angels adorned the ceiling. I was handed a glass of Switzerland?s finest white wine (where do they hide this stuff?).
Then began the festivities...in the local Swiss German dialect. I agreed with everything and laughed at all the jokes. Then came the moment of truth.
The mayor had heard that I was visiting Zermatt for my 46th year. Since the tourist records for the city did not go back that far, he was going to give me a test to see if I had really been coming there for that long.
I said, ?Fire away.?
Question number one: ?Where is the Matterhorn from?? That was easy. During my fracking days in West Texas I had undergone a crash course in Geology.
I had long been a student of the local Swiss rocks, taking several beautiful specimens home every year (mica embedded shiest, black basalt, and low grade jade!), and correctly answered that the Matterhorn came from Africa. (The European Continental Plate is subducting under the African plate, forcing the Matterhorn to grow an inch a year).
?Right!? he responded.
Question number two: ?Who was the first man to climb the Matterhorn?? ?The Englishman, Sir Edward Whymper, in 1865,? I replied. (It?s also the name of a downtown bar). Correct again, cheered the mayor.
Question number three: ?Who was the most famous American to climb the Matterhorn?? Piece of cake: President Theodore Roosevelt, in 1888.
With that, the entire room burst into applause and bravos.
Then, a young woman wearing traditional folk dress approached with a red satin pillow bearing a gold pin. The mayor pinned it on my sweaty shirt. On it was inscribed the words ?40 Danks?, which translates into ?40 Thanks.? He went on to say that if I came back in four years, they would give me my 50-year pin.
I asked if they had a 60-year pin. He replied that no one had been awarded one yet, but if I came back in 14 years, they would have one specially made for me.
This is an invitation I am willing to accept. With that came a refill of that fabulous wine.
No one mentioned my ramshackle appearance. Climbers are afforded a special status here. Maybe, they think we are all insane, and give a wide breadth, for safety?s sake. Everyone else there was wearing a suit and tie.
After that, I went back to my hotel and collapsed. It?s all again proof that if you live long enough, you get to see everything.
Matterhorn Summit
Global Market Comments
August 6, 2014
Fiat Lux
Featured Trade:
(WHAT COULD DERAIL THE COMING GOLDEN AGE?)
(TESTIMONIAL)
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Global Market Comments
August 5, 2014
Fiat Lux
Featured Trade:
(SHAKING THE HAND THAT KILLED OSAMA BIN LADEN)
Global Market Comments
August 4, 2014
Fiat Lux
Featured Trade:
(RUSSIAN SANCTIONS CRUSH EUROPEAN YIELDS),
(FXE), (EUO), (TLT), (TBT), (UNG), (XOM)
(TEA WITH FORMER SECRETARY OF STATE GEORGE SHULTZ)
CurrencyShares Euro ETF (FXE)
ProShares UltraShort Euro (EUO)
iShares 20+ Year Treasury Bond (TLT)
ProShares UltraShort 20+ Year Treasury (TBT)
United States Natural Gas (UNG)
Exxon Mobil Corporation (XOM)
Having spent time as an economics professor at MIT, Dean of the University of Chicago business school, Treasury Secretary, and Secretary of State, George Shultz has certainly covered all the bases.
Now 93, he is the senior statesman and eminence grise of San Francisco, as well as a major philanthropist.
When I read his bio, I feel like my own life in comparison has been wasted watching endless reruns on the History Channel. I first ran into George in the seventies as the CEO of Bechtel while a reporter for The Economist magazine, and pursued him while I was in the White House Press Corp. I have since occupied the box next to his at the San Francisco Opera, and joined him in several Marine Corps charities.
George said that America?s health care headache started in WWII, when wages and costs were controlled, but not benefits. So companies competed for labor by offering increasingly generous, tax-free benefits programs. And when something is free, you use a lot of it, driving total costs through the roof. The end result is large misallocations of resources that you don?t see in other businesses.
Private American companies have made possible tremendous medical advances for a profit, and this system should be allowed to continue. But we need to incentivize future advances with cost containment. We need a universal, subsidized plan that heads off intergenerational conflict by not allowing healthy young people to escape obligations, nor denying older people with preexisting conditions.
Allowing consumers to buy private insurance across state lines is a start. Today your average 65 year old lives for 20 years, compared to 13 years in 1965, and two years in 1900. An equitable system would enable those who wish to continue working after 65, without burdening employers with health care costs, adding $1 trillion to GDP that will help us pay for this all.
Although Shultz is not a huge fan of Obamacare, he does concede that it is a start on several important health care issues.
Global Market Comments
August 1, 2014
Fiat Lux
Featured Trade:
(REPORT FROM THE MATTERHORN SUMMIT)
Global Market Comments
July 31, 2014
Fiat Lux
Featured Trade:
(MAD HEDGE FUND TRADER SETS NEW ALL TIME HIGH WITH 24% GAIN IN 2014),
(TLT), (TBT), (FXE), (EUO), (SPY), (AAPL), (MSFT),
(ONSHORING TAKES ANOTHER GREAT LEAP FORWARD),
(TSLA), (UMX), (EWW)
iShares 20+ Year Treasury Bond (TLT)
ProShares UltraShort 20+ Year Treasury (TBT)
CurrencyShares Euro ETF (FXE)
ProShares UltraShort Euro (EUO)
SPDR S&P 500 (SPY)
Apple Inc. (AAPL)
Microsoft Corporation (MSFT)
Tesla Motors, Inc. (TSLA)
ProShares Ultra MSCI Mexico Capped IMI (UMX)
iShares MSCI Mexico Capped (EWW)
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