Rubin Says He Has "Too Many Dollars"; Pans QE, Volcker Rule

Rubin's comments are actually rather lucid. We agree that the Volcker Rule is really just a band-aid; the real problem is leverage (Rubin doesn't acknowledge that). But let's not forget that the current mess was all largely of Rubin's birthing; as exemplified by his inclusion in the "committee to save the world" that arranged the Long Term Capital Management "private" bailout. Had the lesson truly been learned from that episode, we would perhaps not have seen such a bubble in highly-leveraged trading and the subsequent deleveraging hell we are going through now...

``A "disproportionate amount" of his assets are in cash and he "should be more allocated away from the dollar," Rubin, 73, said yesterday in a speech at the TradeTech conference in New York. He said he also was "greatly overweighted" in private equity and had investments in hedge funds. ''