"When I was a Lad" (Carney Style).

After prompting from a reader and getting bored of guessing Italian election outcomes, we have adapted Messrs Gilbert and Sullivan's "When I was a Lad" from "HMS Pinafore". Instead of the Queen's Navy, we think the B.o.E is more topical.



"When I was a Lad" (Carney Style)

When I was a lad I served a term
As a junior trader at the Goldman firm.
I cleaned the books and soon wasn't poor,
As I traded debt and made the profits soar.

Chorus.
He traded debt and made the profits soar.

I traded debt so carefully
That now I am the Governor of the B.o.E

Chorus.
He traded debt so carefully
That now he is the Governor of the B.o.E

As trading boy I made such a fee
That they gave me a post in the ministry
As Canadian minister with no recourse
I introduced a tax on income trusts at source.

Chorus.
He introduced a tax on income trusts at  source

I introduced the tax when at the ministry
So now I am the Governor of the B.o.E

Chorus.
He introduced the tax when at the ministry
So now he is the Governor of the B.o.E

In raising tax I made such a name
That a central bank governor I soon became
I saw a crash, chose policies to suit
To prevent Canada becoming destitute.

Chorus.
To prevent Canada becoming destitute.

I passed so well through the G.F.C
That now I am the Governor of the B.o.E

Chorus.
He passed so well through the G.F.C.
That now he is the Governor of the B.o.E

Of central bank skills I acquired such a grip
That they took me into the partnership.
Bernanke, Merve and then Draghi
All showed me the way to play the great Q.E.

Chorus.
All showed him the way to play the great Q.E.

Balance Sheet Constraint won't apply to me
Now that I am the Governor of the B.o.E

Chorus.
Balance Sheet Constraint won't apply to he
Now that he is the Governor of the B.o.E.

I grew so known that I was sent
By a select committee into Parliament.
I always voted for the strong growth call,
I never thought of thinking of inflation at all.

Chorus.
He never thought of thinking of inflation at all.

I thought so little, they rewarded me
By making me the Governor of the B.o.E

Chorus.
He thought so little, they rewarded he
By making him the Governor of the B.o.E

Now bankers all, (don't look at me Moody)
If you want to rise to the top of the tree,
If your soul isn't bothered by a ratings fall
Be careful to be guided by this golden rule.

Chorus.
Be careful to be guided by this golden rule.


Preach growth, restraint yet huge Q.E.
And you all may be Governors of the B.o.E

Chorus.
Preach growth, restraint yet huge Q.E.
And you all may be Governors of the B.o.E
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20 comments

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Leftback
admin
February 25, 2013 at 4:11 PM ×

You always do your best work as a lyricist on the morning train ride, Pol.

Berlusconi worth 5 bps on the 10y so far. That's a fair bit of fear for one politician.

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rp
admin
February 25, 2013 at 4:22 PM ×

awesome, cheers Polemic. You work a bit quick!

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Leftback
admin
February 25, 2013 at 4:28 PM ×

TIMBER! Keep an eye on this one. It's an important commodity related to the "Housing Recovery" and is trading on the fundamental laws of supply and demand, right? So there's no reason why it should trade like a leveraged dollar hedge, and rise and fall on the Italian election rumours?

LUMBER or TIMBER?

If lumber futures fell in the forest, would they make a sound? Smirk. Perhaps if they landed on traders in the pits...

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Leftback
admin
February 25, 2013 at 4:48 PM ×

Looks like a “do-over” ahead in Italy. That means a few weeks of instability in the Euro area while things get (dis)organized again. This is very common in the history of Italian politics and I am amazed that anyone would be surprised by this. Nevertheless....

Treasuries catching a bid. 10y is 7 bps lower than it was this morning before the election results story became a little (un)clearer. As soon as I saw Jim Grant ("certificates of confiscation") on Bloomballs this morning I knew it was going to be a good day for bonds... he has called 376 of the last 3 US interest rate spikes.

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Leftback
admin
February 25, 2013 at 7:08 PM ×

DX is at a 6 month high here at 81.72. Anyone unwinding anything out there yet?

Looks like a make or break level for both BUCKY and Mr BOND as they challenge resistance levels. Meanwhile, even GOLDFINGER also showing some strength, perhaps on renewed Bunga Bunga fears among European models. Havens appear to be making a comeback. There are even some punters out there with a yen for some JPY.

We are long US fixed income and short US beta here, so it is sh*t eating grin time at Falling Knife Capital today.

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abee crombie
admin
February 25, 2013 at 7:26 PM ×

shall be interesting if all of these reversals play into tom... Yen is key to me, same with Stoxx. Knife catchers in Spoos Im sure will show up soon like they always do

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Leftback
admin
February 25, 2013 at 7:42 PM ×

If you look at EURJPY it is probably still good above the 50dma at 120. If that support breaks down, then it looks a bit nasty. A 50% fib retrace of the run from 94 would be down at 111, which is also the 2012 high, and therefore chart support.....

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Leftback
admin
February 25, 2013 at 8:50 PM ×

Holy mackerel. EURJPY sub 120 already.

So much for FX vol being a thing of the past.

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Anonymous
admin
February 25, 2013 at 9:07 PM ×

C Says'
Promising.

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Leftback
admin
February 25, 2013 at 9:08 PM ×

We don’t do “smirks” here at Falling Knife™ Capital, so we’ll “take the high road” and be classy today…

Well, actually, who are we fooling? Nobody. Hell, yes, we are going with a monster smirk and a shit-eating grin. Because that’s who we are....

Good afternoon, XHB longs. Got puts?

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abee crombie
admin
February 25, 2013 at 9:19 PM ×

wow some massive moves today...Spoo's stop loss selling into 1490... wow that was intense

manic monday!

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Anonymous
admin
February 25, 2013 at 9:19 PM ×

Ben will put all this vertigo nonsense to bed tomorrow. JBTFD is counting on it.

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Polemic
admin
February 25, 2013 at 9:23 PM ×

The ruck isn't in Ben's hood. Unless he's going to QE berlusconeee, or stand for BoJ gov he may have to sit this one out.

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Leftback
admin
February 25, 2013 at 9:51 PM ×

This round is on Dr Aghi, not Ben.

But he isn't going to wade into the muck right away, nobody at ECB is getting involved here until we see BTPs retrace to 5% or so, then a few alarm bells might start going off.... for now it's just The Italian Job.

LB can fancy a sharp drop at the open tomorrow, maybe 8-10 spoos, depending on what FX goblins are out and about tonight, but then the dip buyers will probably come in and do their thing and the shorts will cover for now. Data for the rest of the week will be pants, but it looks like we've taken care of that for the time being.

It all looks a bit broken for bulls though, dunnit? Anyway, a quick look at the euro crosses first thing will tell us everything we need to know to trade tomorrow's action.

(sings: "Macro Is Back. Macro Is Back. 'Ello...")

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Anonymous
admin
February 25, 2013 at 9:51 PM ×

C Says
Given the size of the early week moves by Muppet inc particularly in the MIB then reopen tomorrow will be a blood bath .Trading stoppages I suspect.

IF this evening's story is correct that Burger Grillo has won most seats of any one party in the lower house with Letch doing the same in the senate then we truly have Euromayhem,because neither of them can sing in German.It's like just rewind the clock to pre Draghi "whatever it takes" ,and start over again.Except of course we're a megaton of FX fuelled leverage further up the road now.
So SuperMario is likely to have to show what "whatever it takes" really means.



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Anonymous
admin
February 26, 2013 at 7:40 AM ×

Grillo did not make the strongest appearance but c. 25% (add some margin of error in case votes get recounted *cough*) is strong enough imo.

Il Cavaliere in striking distance to BorsaNi and well within the margin of error... this might be good for some telenovela shows over the coming days and weeks. Sit down, gentlemen, get your snacks and drinks and enjoy the show ! At the end the universe will explode for your entertainment.

Eddie

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Anonymous
admin
February 26, 2013 at 11:18 AM ×

C Says
Yes the original report on results was in error,but not in any way which improved the outcome.
1/2% between the main two and with Grillo at 25% is simply a huge vote against German austerity and reform policy approach.In effect they are really saying "give us back the Lira and currency depreciation as the other route of reform is too unpopular to maintain public support".
Moreover, with the results as they stand how are they even going to get a substantially different result ina rerun?. For a moment I wondwered if this might be a Greek style initial election,but on reflection I don't think so. The Greeks appeared to use the forst election to stamp their feet and then,having done so, changed their vote in the 2nd election. The dispersion of votes in Italy suggests a larger element of dissatisfaction and thus I'm not sure a rerun is going to change that dramatically.
I would think we are going to see a coalition of the main two parties governing,but how that is going to work with the Letch and Germany is going to be very unsettling for the Euro. Ridiculous as it sounds you can see the Letch and Hollande as the new axis with what Germany and UK the other?
I can't see a way that this does not spell a large change of sentiment in for Europe. So much for any run on the sterling.Not going to happen while Europe bumbles along.

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Anonymous
admin
February 26, 2013 at 1:00 PM ×

no smirks yet at Directionless Gamma Partners™, as despite an OK green figure in a red market, bugger audusd flamingo still refuses to unwind to where it would make our quarter look real good. No complaints on AGBs though, so it's 1-fer-2 on the brazilian playbook so far (or is it the brazilian wax?)

DD

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March 13, 2013 at 3:27 PM ×

Ben will put all this vertigo nonsense to bed tomorrow. JBTFD is counting on it.

Media Monitoring

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