Reviewing the Rubin genius theory.

• Position: Off The News

Recently, TIE happened to sit in on a fascinating dinner conversation. The scene: the annual gala on May 28 of the Robin Hood Foundation, the hot new New York charity geared to the younger financial market participants who made it big in the 1990s.

Enter the well-known manager of a large global hedge fund who sat down next to a powerful trader from Goldman Sachs. "We had all proclaimed Bob Rubin a genius, but I'm beginning to wonder if it was all media hype," said the hedge fund investor. "The Rubin theory was to talk 'strong dollar, strong dollar, strong dollar' to rally the bond market. Cut the deficit and the bonds would rally some more."

"So where are you going with this?"...