Are you disgusted by the title? The market action? You’re not alone.
Last week, in 3.5 days the market indices dropped 6%. Yesterday, in 1 day it was up 3%. Yesterday bellwether stocks were up 7% and every single S&P 500 stock was positive.
Today those same bellwethers are down yet something is pinning the SPX to 1200, up on the day.
Every market move occurs at the open driven by low volume futures trading. And daily market volume is ridiculously low, but that doesn’t matter.
Two weeks ago we “discovered” that Politicians were trading legally on insider information. Today we “discover” that Paulson, the Treasury Secretary of the United States of America, told his “friends” non-public information that they most certainly traded on.
Europe has no plan other than to deal with each crisis individually and as it appears.
House prices will be down another 10% this quarter as they have been during each fourth quarter since 2007.
Money is pouring into the perceived oil and paying ever higher prices regardless of demand, just like in 2008.
Yet we are to believe that consumer confidence just jumped 20 points this month?
MARKETS ARE ILLIQUID YET CORRELATED. IT IS A RECIPIE FOR A MINSKY MOMENT.
Use these insane Bear Market, rip your face off rallies to FUCKING PROTECT YOURSELVES. Play the grind all you want but know what could be coming at any time.
Caution pisses traders off, until they lose their shirts. Don’t be pant-less when the market gives you the finger.
And remember, IT’S MONTH-END…
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WTF is a Minsky moment?
^^^Glad he said that.
http://www.debtdeflation.com/blogs/2008/03/10/time-to-read-some-minsky/
A result of deregulated financial markets? I think we are over-regulated. Or perhaps the stock market is the only place where financial markets can breathe a little.
I see you have been watching Fox News. Where they act as if they think that the financial crisis was a result of over-regulation, LOL. They know it’s a lie, but they get paid big bucks by the their sponsors for that TBTF and TBTBA (too big to be accountable) Corporate Propaganda TV Network.
Very helpful, tw. Thx.
liked the points u mentioned thx
THanks Scott. This post is 5 stars just because you used Minsky Moment. I fear it’s a lot sooner than many think.
good post scott. gettin tired of thievery rolled up in a turd to
Good read Scott. It’s disgusting.
As a Bear, I hate the end of the month…glad it only comes once a month. BTW, thank you for a new term..I had no idea what a Minsky Moment was either.
Here is a link of a download of a full text of one of his papers on the Financial Instability Hypothesis http://papers.ssrn.com/sol3/papers.cfm?abstract_id=161024 Scott, you know I have been fixated on learning about bubbles thru the “Shanghai Copper Market”. In a sense, that is a tiny working example of Minsky’s thesis. China Govt caused the original buying of it in March of 2009 by being actual buyers and talk that they will defend the price, as a result of Govt intervention, it turned from actual supply/demand to the hedged buying, which was replaced by speculative..and now imho we are at Ponzi levels as they use copper to recieve other loans to buy more copper to support prices. Inflation appears and China Govt now needs to step in to stop it. If I am understanding Minsky.
Lucid shit, man…
I don’t get it. Just a few days ago you said all markets deserve a rest. Now we got one and you still complain about it?
Awesome post Scott. Thank you.
Summarized it brilliantly.
Had to read up on minsky.
Thank you tw.
Such language on this site….hope my kids don’t find this adult site.
Good post and right on
Do swap lines resolve the debt problems???
“Why are these swap lines being implemented?
These swap lines are being implemented as a contingency measure, so that central banks can offer liquidity in foreign currencies if market conditions warrant such actions.”
“Dollar funding market” has “FROZEN UP” but they are NOT goinbg to the swap lines ?
WHY ?
They Do NOT have good collateral to borrow