My old pals at The Motley Fool are at it again - taking my absolute favorite business hobby horse - reporters who call every appreciating asset class a bubble - and beating it further to death.
Their April 1 story includes all the staples of the genre, an obscure analyst who is trying to make a name for himself with an outlandish call, the rush to the internet, obscure charts you won't read, a branded index that explains the problem, apocalyptic third-party quotes and more!
Also, as someone who reads Zero Hedge every day, this one was perfect:
You'd better take a seat...
A quick Google search confirmed that the VIX is calculated by the Chicago Board Options Exchange, a subsidiary of CBOE Holdings,
And who owns CBOE Holdings? You guessed it: Wall Street.
CBOE's largest shareholders are big names like T. Rowe Price, Blackrock, Vanguard, State Street Global Advisors, Fidelity, and the infamous quantitative hedge fund Renaissance Technologies. A member of CBOE's board of directors even held senior management roles at Morgan Stanley for more than three decades!
In short, the so-called "Wall Street fear index" is just that -- a fear index of, by, and for Wall Street.
And Wall Street has billions of dollars in profits at stake. Do you really think they wouldn't hide an impending catastrophe from Main Street? These guys manipulate the VIX numbers for fun and profit every day -- just like LIBOR and the CPI.
Even though they are shamelessly stealing my bit, I love it. Have a great day guys. Love to the familes.