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Tuesday, December 21, 2010

Back To Reality...

Trades for 2011, with Doug Kass, Seabreeze Partners Management.

5:15 - "...I also think it has consequences with the Greenwich Connecticut residential real estate market which should collapse."

What he seems to be saying here is that the SEC is going to crack down on the hedge fund community and go after fraud. Greenwich Connecticut is ground zero for hedge funds and it is the place where Wall Street people live. Think of the now long gone LTC -- Long Term Capital. If he is eluding to something to the likes of LTC then there will be a major bust for the players involved.

LTC was located just on the other side of the Boston Post Road on the back side of The Food Emporium in Greenwich Connecticut. Not much of an office building but LTC almost brought down the country -- they made movies about LTC and the LTC bailout.

He is saying that this kind of disruption will affect Morgan Stanley, Goldman, Meryl, etc. Is he saying that if active trading seizes up that there will be a cash flow problem for the traders that all live in Greenwich and that they will scramble to sell assets such as their homes creating a residential real estate collapse?

For example if you are working for the hedge funds, if you are working for Morgan Stanley, Goldman, etc., and you are making the big bucks -- millions -- and if all of a sudden the bottom falls out you will move fast to sell what you can as fast as you can. Will everyone run for the door at the same time?

I think he knows something's up... he's part of that crew.