Reviewing the Rubin genius theory. (Off The News).Recently, TIE happened to sit in on a fascinating dinner conversation. The scene: the annual gala on May 28 of the Robin Hood Foundation The Robin Hood Foundation is a charitable organization which attempts to allieviate problems caused by poverty in New York City, New York. The Robin Hood Foundation was featured in Fortune Magazine's 18 September 2006 issue where the article states that the foundation is "one of , the hot new New York New New York is the name of three futuristic cities modelled on New York City:
Enter the well-known manager of a large global hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" who sat down next to a powerful trader from Goldman Sachs. "We had all proclaimed Bob Rubin a genius, but I'm beginning to wonder if it was all media hype," said the hedge fund investor. "The Rubin theory was to talk 'strong dollar, strong dollar, strong dollar' to rally the bond market. Cut the deficit and the bonds would rally some more." "So where are you going with this?" asked the Goldman trader. Responded the global money manager: "Well, the current Treasury secretary--whatever his name is--just talked the dollar/euro [exchange rate] down all the way to 1.18 and the bonds are rallying. Bush is out of control with his tax cutting and the bonds have rallied even more. Looks like all along, the bonds pay little attention to the dollar and basically fixate To close. The term often refers to closing a track-at-once session on a CD-R disc. See disc fixation. on what the Fed's been doing. So much for the Rubin genius theory." |
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