The Washington Super Whale Pwns The Hedge Funds | Exploring Markets

The Washington Super Whale Pwns The Hedge Funds

There is an incredible piece out right now by Cal Professor Brad Delong.

Delong compares the London Whale at JP Morgan to the Washington Whale at the Federal Reserve. 

Here are two snippets that will catch your eye, and then a link to the story:
"So they scrambled around, wondering: "Why did the interest rate on the Ten-Year Treasury peak at 4%? And why has it gone down since then? And why won't it go back to its 5%-7% fundamental." And they looked around. And they found Ben Bernanke: The Washington Super-Whale." 

And from Paul Krugman who summarizes the piece:
"His point is that the hedgies keep thinking of the Fed as if it were a rogue trader driving prices away from their natural value, like JP Morgan’s London Whale, rather than as a central bank trying to achieve full employment and target inflation."

MOBY BEN, OR, THE WASHINGTON SUPER-WHALE: HEDGE FUNDIES, THE FEDERAL RESERVE, AND BERNANKE-HATRED:  http://delong.typepad.com/sdj/2013/05/the-washington-super-whale-hedge-fundies-the-federal-reserve-and-bernanke-hatred.html