Kass: The Reason Behind the Reversal

This blog post originally appeared on RealMoney Silver on Sept. 23 at 9:51 a.m. EDT.

He's back! Yep, the ultimate plunger, that paragon of speculation, Boca Biff, is back.

I first introduced ultimate daytrader Boca Biff to readers of The Edge, my exclusive trading diary on RealMoney Silver, back in January 2004. And on Monday, as I was minding my own business, he called.

I haven't spoken to Boca Biff in a while as he had fallen on bad times and I think he was embarrassed to call me. He had been licking his wounds, which included unprofitable forays in the stock market, large losses in speculating on homes in South Florida, a collapse in his window and door business and all this after a failed marriage.

As Boca Biff related in our telephone conversation yesterday, he got remarried one and a half years ago to a woman with a reasonably large divorce settlement. Biff went on to say that he watched and watched the market's unrelenting rise through the summer and into the fall until he couldn't take it any more and finally made the plunge last week ... on margin! With accumulated losses of roughly $15 million over the course of the last decade, Boca Biff is back at it.

I asked, "Why now?"

He responded, "Don't be a moron, Dougie. It's global liquidity. Don't you get it? Moreover, I am getting 11 basis points currently in my cash reserves at my brokerage account with Baron Von Broker." He went on. "Importantly, I have remarried and my new wife not only comes with some money but she has no clue regarding my investing mistakes of the past. I managed to keep my Mizner home in Boca, she loves it here, and she adores me."