The Center Of The World © fintag

News comments:
GBP, strangely, is the current whipping boy of the fx markets. Despite the UK have some of the longest term debt out there, averaging about 14 years, and an unblemished track record in paying its debt off, it is being beaten up.

Us hedgies are partly to blame, especially us with USD assets and GBP liabilities (fees and remuneration) so we are lovin' it.

USD is seen once again after a few sweaty years when the EUR nearly took over the mantle, to be the world's reserve currency. Despite Obama showing Gordon Brown how to spend such that its debt is nearly overtaking its GDP, the USD is seen as a good place to be.

As an economist, I see the world as more irrational and stupid than ever before. If I had my time again I would have studied psychology for the market is not Mr Spock but Mr Freddy Kruger.

Of course you know I had a bad May. We all did. Once again our models were left behind and we messed up again. But this is nothing compared to the mess the UK chancellor has to sort out. Unlike Thatcher's cost cutting where she sold the family silver, Osbourne doesn't have any to sell. Asking the people what to cut is like asking a patient which part of their body should be amputated. Best if you don't tell and just do it.

Today's shorts:
Arki Playboy And His Girlie Bracelets (nymag)
12 Year Old Prepares To Sell His Skateboard (cityam)
Cohen Seeks Helper (businessweek)
Canadians Launch No Fee Hedge Fund (dealbook)

Today's longs:
Mrs Arki and her Cuban(telegraph)
FoHF To Be Given Bracelets For Good Behaviour (hedgefundsreview)
Fitch Fists Frightened Financier (independent)
Idiots and Copulation (hitc)

Gossip:
Steve Jobs to stand for President.