Sunday, June 19, 2011

$6 billion hedge fund bets on 40% crash in SP500

RT News reporter Lucy Kafanov interviews Courtney Comstock of Business Insider regarding the bearish positioning of the $6 billion Universa hedge fund which has a steep $50 million minimum investment to get in:

The fund manager of Universa is Mark Spitznagel, the protege of Nassim Taleb, author of "The Black Swan".  Mr. Spitznagel is also a follower of Ludwig von Mises. I have noticed many von Mises economists (such as Peter Schiff) have a pretty bleak outlook and predictions for the U.S. economy or dollar.  Notice that there appears to be some real fear/apprehension on the part of the reporters as they contemplate, "What if Mark Spitznagel is right?"  I do not blame them.

For further details, read Meet Mark Spitznagel: The Hedge Fund Manager Betting $6 Billion On A Doomsday Scenario from Business Insider.