Why all the disgust with ZeroHedge & Tyler Durden?

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Cash4Gold - Certified Professional
Rank: Gorilla | banana points 729

I check a few sites when I wake up every morning (in no particular order):

WSO
Bloomberg
Seeking Alpha
ZeroHedge

I have been told by alumni to never even mention the name ZeroHedge around professionals. I know ZH is controversial, and I can imagine it is black listed from a lot of firms, but why such hate? I can understand why the gold bug articles and other topics along that line are not well thought of, but I have used some of the data on bonds and credit for class presentations and the EU clusterfuck, and it is spot on. So is there as much ZH hatred as I am being told, or does it depend on where you work? I would imagine GS has it blocked, but I have no legs to stand on when I say that.

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Comments (40)

Apr 13, 2010

Never knew it had such a bad rep, but that might be cuz im in the UK

Zero hedge is top notch.

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Apr 13, 2010

I don't have anything to say about the site's actual content, but I always found the idea of a Wall Street analyst going by a pseudonym from Fight Club hilariously juvenile.

Apr 13, 2010

Because the truth hurts.

  • Anonymous Monkey
  •  Dec 11, 2015

So does a broken jaw. Just ask Tyler D.

Apr 13, 2010

It's funny but a LOT of professionals read it. I frequently get links/posts, etc. Most of the SPY volume ramp-up posts are shitty but there's some good stuff in there.

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Apr 13, 2010

I like some of the articles a lot, but the website overall is always whining about how the sky is falling, how things are worse now then ever before, etc. Just gives me a strong sense of false prophets of doom.

Freeze those knees, my chickadees!

Apr 5, 2014
Ruby Rhod:

I like some of the articles a lot, but the website overall is always whining about how the sky is falling, how things are worse now then ever before, etc. Just gives me a strong sense of false prophets of doom.

That's exactly my impression as well. I don't quite saw anything the guy got right either to be fair. Then again at least it's thought provoking or gives you ideas about follow up readings.

Apr 13, 2010

Let me see, from the top of my head here is what ZH has gotten wrong:

The bull equity market after the Mar 08 bottom.

Released a fake bank stress test created by a guy who runs a race baiting radio station.

Saying GE was the next CIT.

Dollar hyperinflation.

Talking the dangers of HFT to banks when it is a miniscule part of their business.

All the conspiracy theories around SPY volume manipulation.

In fact I can not name one thing that site was right on. Greece was closest ZH came to being right but yet again ZH called something way too early. Greece might default in the future, but ZH was dead wrong about it being this month. Could take years, if ever.

In fact I challenge anyone to show me one thing ZH has verifiably gotten right.

Apr 13, 2010

I didn't read their "GE is the next CIT" post, but just figured I'd point out that at the peak of the crisis, GE was one of the next in line to fail if the banks were not bailed out. However no one seems to talk about that.

Apr 13, 2010

'GE is the next CIT' came after CIT filed for bankruptcy which was well after the hight of the crisis and the bailouts. GE was not next in line for anything at that point.

Apr 13, 2010

So I have gathered that some love, and some cannot stand Tyler and Marla. It would be interesting to see how people feel, IB vs. S&T vs. HF but that's too much work.

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Apr 13, 2010

I check out the site daily but I personally don't care much for Tyler Durden. He is way too alarmist for me, while subverting one of my all-time favorite movie characters.

Apr 13, 2010
Apr 14, 2010

@ ideating

Nope. CDS spread for NRCU at the time of the orginal post was about 300. By the second post it went to about 230. Today it is at 146.7. If you bought CDS on NRCU you would be in a world of pain. Not only that, there was no opportunity at all in the data that shows you could have exited a position with a profit had you bought the CDS in April.

I will say ZH analysis in this case was better than usual but still failed to predict the future.

A silver banana for anyone who can show me a ZH prediction that came true.

Apr 14, 2010

i want a silver banana so bad!

Apr 15, 2010

The point is not that the predictions are true, but rather that the system is so twisted that despite the obvious need for corrections (e.g., current equity markets) there will be none

For the record, I don't agree with a lot of what TD says, but I find it pretty good to hear from the other side of the coin...especially when it comes to parsing through government produced economic data

Probably the biggest issue with the site is that some of the folks that write the posts seem kind of amateur-hour

Apr 15, 2010

@Cmoss

Troll fail

@ Felix Rohatyn

You make a fair point, I do have to admit he provides important information promptly which is the only reason I even look at the site.

Apr 5, 2014

Lots of professionals read it, not sure where this never mention it comes from.

I mean you can't take anything at face value they say but it's still entertaining.

Apr 5, 2014

ZH is incredibly biased. Not seeing that fact is as blind as thinking Fox, CBS, et al are objective in their reporting. As a matter of fact, I equate ZH as the opposite of Quartz; whereas ZH swears we'll all be dead in 6 hours due to some kind of capital market-induced armageddon, QZ acts as if we'll all be drinking Sunny Delight and have friends as diverse as the Power Rangers in 30 years thanks all the great advances in technology and social paradigms.

Notice how both ZH and QZ always have 2 convenient charts on every one of their posts that at first glance completely confirm their view. Think about said charts for 17 seconds afterward, however, and you quickly realize that their stupid 2-axis charts actually don't say much of anything.

As with anything, absorb facts and come to your own conclusions. Every news source is biased.

Dec 13, 2015

They're useful for the exact same purpose that InfoWars is:

The reporting is shit, but the headlines tend to a do a good job of highlighting events that you wouldn't know existed otherwise.

Dec 13, 2015

bump

Dec 13, 2015

also interested

    • 1
Apr 18, 2016

they got everything on oil right tho'.
i'd like to read more about this subject

Apr 18, 2016

Because there's too many Tylers

Absolute truths don't exist... celebrated opinions do.

Apr 18, 2016

Are you kidding? What's next, updating us about the Y2K threat? Are you reading dealbreaker on a 1-month lag?

Apr 18, 2016
ideating:

Are you kidding? What's next, updating us about the Y2K threat? Are you reading dealbreaker on a 1-month lag?

Whatever, dude.

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Apr 18, 2016

Sounds like someone is a little upset they didn't get Goldman TMT...

"I just want to be a monkey of average intelligence who wears a suit. I'll go to business school!"

Apr 18, 2016

Who's gonna pay his freaking heathcare bill when breaks his spine from all that fighting? It's not gonna be him cuz he doesn't have a real job. It'll be me and all the other tax-paying workers of this country.

Apr 18, 2016

For what it's worth, Fight Club has been the movie of my life.

Apr 18, 2016

Easy to say and difficult to make the move, especially when you do have a deep pocket. Greed is critized by all the religions, yet we have been following its lead since the day the first humans appeared on earth. I don't think I need to quote Gecko.

Apr 18, 2016

Well, it holds true that the lower classes are kind of slaves to the upper class, since most people are employed by upper-middle and upper class. And it also shows that we are dependent of material things, such as name on underwear. So I think he has a point, but we greedy people on this forum should not heed since we profit from companies who profit from consumer buying these items.

Apr 18, 2016

You may not want to base your ENTIRE life around the movie, though.

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Apr 18, 2016

@eddie
Agreed, however, iThink this moive may be in my top 5. One can learn a great deal from watching and playing close attention to this film.

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Apr 18, 2016

There's definitely a lot to be taken away from Fight Club, definitely one of my favorite movies of all time - also planning on reading the book.

But I think you have to also use a little common sense. One fundamental assumption I see made many times by people who like to at least pretend they eschew the trappings of a privileged life is that somehow, all possessions are bad, and that things in general are only there because an evil man in a corporation somewhere schemed to get it into your life. But I think that's all horseshit.

I like Ferraris because they are beautiful, beautiful to drive, sound wonderful, and have all kinds of wonderful attributes. I don't like them because they're "cool" in some objective sense or because they're expensive or because famous people have them. Sure those are all nice side effects, but I think there are plenty of ways to enjoy the material things in life without being an asshole.

Sure there are lots of people that need validation for everything that they do...and they will do anything to have the newest iPhone, the newest designer clothes, the nicest car, all that. And that's fine - I don't judge. But I think a lot of people who appreciate the finer things in life purely on their own merit get lumped in with people who couldn't give a shit, who only want it because it's expensive, etc.

So, the cause isn't the things. The things don't turn you into a consumerist, egotistical, insecure asshole - your own insecurities and inability to lead your life in a way that doesn't need validation from everyone else is the cause. You simply use things to fill that hole you have.

So to get off the soapbox....a lot of problems that I see discussed in Fight Club can be very real - but I think you have to approach them from the right angle.

"When you stop striving for perfection, you might as well be dead."

Apr 18, 2016

Not a trader, but it's always more intriguing to read about the world potentially coming to the end rather than what's going good. Tyler is obsessed with trying to catch a black swan and it happens to be interesting to read his arguments and debate the issue in your head whether its bullshit or not.

Apr 18, 2016
Apr 18, 2016