Victor Niederhoffer's Take On Alan Greenspan's Testimony

One can't help but think that Alan Greenspan's confession that his belief in free markets was wrong is an example of the "Old Man Syndrome" a la Cyril Burt wanting to have the most identical twins in his study, combined with George Zachar's "your own man said you were out." -Niederhoffer

In a lot of people's eyes, Old Man Syndrome, is an easy way to let Greenspan off the hook for a long career as a government apparatchik.

Greenspan's one time girlfriend, Barbara Walters, in her autobiography, Audition, even pointed out that she contentiously debated with Greenspan over the fact that he took the position of Fed chairman. She wrote: "How Alan Greenspan, a man who believes in the philosophy of little government...could end up becoming chairman of the greatest regulatory agency in the country is beyond me..."

It's A Waterboarding Decline for The Stock Market

The very curious Mr. Victor Niederhoffer (In spectacular fashion, he has blown up two multi-million dollar hedge funds.) has some interesting observations on the current financial crisis:

Of the 100 biggest markets around the world, almost all are down 40- 60% in dollar terms with the exceptions' being Tunisia and Botswana...

A new word should enter the market vocabulary, a waterboarding decline, being a decline that seems to have a breath of life at the open before going into a death spiral...

Because of the decline in all sectors, the wealth/price ratio has stayed relatively constant with corn, copper, soybeans, wheat and oil down about to 40- 50% since June 30, thereby keeping the number of bushels and barrels we can buy with one DJI relatively constant, making the number of ounces of gold you can buy with the Dow less than 10 for the first time in a googol, and looking like a bargain for the Dow...

Never give this guy your money, but always listen to what he has to say.

Insight and Insanity from Victor Niederhoffer

Victor Niederhoffer has blown to smithereens two hedge funds, so far, in his life. But he continues to watch the markets and, now, comments at his blog about them. At a new blog post today, Niederhoff may provide a clue as to the analytic state that one must possess to blow up hedge funds. You can read his post here.

It's a bit of keen observation, "I note that today's range in S&P of 11.2 was a 40 day low", with a heavy dose of madness, "Such a low range fits in with music theory that talks about how certain intervals such as the 3, 4, 5, 6, are particularly flowery, while others, especially the 2 and 7, are hollow and bitter. ...Around the third day, there seems to be some new music in each case."