Robert Schillers MacroShares = Flawed Product??

Greg Newton:

The MacroShares are irretrievably broken. They have never performed as advertised. They show no signs of ever working as advertised. They are a disgrace to the ETF market, and have been, pretty much since they were introduced.

External Link: MACROshares


Author Profile&nbsp-Editor and Publisher of Midas Oracle .ORG .NET .COM &#8212- Chris Masse&#8217-s mugshot &#8212- Contact Chris Masse &#8212- Chris Masse&#8217-s LinkedIn profile &#8212- Chris Masse&#8217-s FaceBook profile &#8212- Chris Masse&#8217-s Google profile &#8212- Sophia-Antipolis, France, E.U. Read more from this author&#8230-


Read the previous blog posts by Chris. F. Masse:

  • Comments are now completely open on Midas Oracle.
  • Albert Einstein, Chairman of the Midas Oracle Advisory Board
  • Erratic –but not Stochastic– Charts
  • Barack Obama is the 44th US president.
  • We already have prediction markets in future tax rates. It’s called the municipal bond yield curve.
  • DELEGATES AND SUPERDELEGATES ACCOUNTANCY
  • O’Reilly – Money-Tech Conference

2 thoughts on “Robert Schillers MacroShares = Flawed Product??

  1. Jason Ruspini said:

    I have never been 100% clear on what happens behind the scenes with these ETFs, but one assumes that the basic problem is insufficient demand for the “down” shares. Someone can provide liquidity and hedge their exposure in futures or cash but this is not free and this asymmetry is the result.

    This by the way was also a problem with the Economic Derivatives. The banks that ran the auctions were taking exposure to make them more liquid and eventually decided that it wasn’t worthwhile.

  2. Jason Ruspini said:

    I have never been 100% clear on what happens behind the scenes with these ETFs, but one assumes that the basic problem is insufficient demand for the “down” shares. Someone can provide liquidity and hedge their exposure in futures or cash but this is not free and this asymmetry is the result.

    This by the way was also a problem with the Economic Derivatives. The banks that ran the auctions were taking exposure to make them more liquid and eventually decided that it wasn’t worthwhile.

Leave a Reply to Jason Ruspini Cancel reply

Your email address will not be published. Required fields are marked *