Today is historic as implied volatility is zero for the major indices and has been replaced by individual equity volatility. Google up 50, Apple down 50, Netflix up 40 and a myriad number of stocks up or down (mostly up) 5, 7, 10% today, most on no news. There are a lot of stocks looking very parabolic today.
I assure you that the money is not coming out of bonds in what the media calls “the Great Rotation”. It is simply Apple money combined with the new, freshly printed digital cash being used for the financial assets that have been targeted for inflation and levitation: equities. And it is costing the taxpayer nothing! Not one penny.
And that the most over-owned, over-loved and overvalued stock should lose $50 billion today and have zero negative effect on the overall market proves how hard our government is working.
Looking at individual stocks is downright scary as what goes up usually comes down. But most “investors” won’t notice. Instead it is all about the major indices making multi year highs and the SPX getting above 1500 and now just a few dozen points away from its all time high.
I find it ironic that the President most hated by the “rich” is the greatest President for the rich. Say goodbye to Geithner as today is his last day on the Government payroll. This rally is his sendoff.
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still no real fundies to back it up.mot,nok,rimm samsung,all the losers been crying in the playpen for so long,they rotated out of appl,and redirected their coins.oh,some are saying that appl has “saturated” the market deep enough,that it was time,and after yesterdays call after the close.well, the cry babies are getting what they cried for.alas:appl is sitting on +137 bill in clean cash.OTH the us government has -17 trill on their books………appl has positive cash flow,and more money than the government, in real terms.so i guess that appl’s money printing machine needs a technician,something about a roller,or something. and for your last sentence.”pimps say one thing,and always do another”.thats what i’ve seen living in the town where this pimp comes from.
So, the Fed buys a bond and the bank gets reserves. That is the extent of this “digital cash” you speak of. I’d love to hear how institutions use reserves that are deposited at the Fed to buy financial assets. Seeing as that’s what your thesis is based on…
I’ll give you a hint…they don’t.
Fungibility
read a piece @ zero hedge.seems as though the debt we have with china is being traded for assets. swaths of land,mineral rights,owning banks,and building “chinese only” towns.in another decade,POOF, our debt will be gone…dow 50 k
As long as watching my granpa stocks, nothing scary. They are not even close from all time high nor joining this rally. Boring but peaceful.
AAPL has $136Billion cash which the gov’t is devaluing at a massive rate. They should pay it out to shareholders.
it’s the master shake out, of all shake out’s. and i say that because there are some wildly long, share holders.i mean people who have held the issue from way back sub par for years…….yea,sit back and watch the fucking sharks surround this one,it will be a marvel.
Great comments but did anyone say sell the fruit? Not here for sure…
magical economy. magicians in control. print mortimer, print!