Archive - May 2010 - Blog entry

This is supposed to calm down the markets Monday morning. The Fed opened its swap lines with other central banks and treasuries to provide dollar liquidity as investors flock to the euro. Mish says short squeeze.

Unbelievable.

The message to speculators is clear: you no longer have free reign to mount destructive speculative attacks on European sovereign debt or the Euro. Even though it's late, Europe's show of force is resolute and decisive. In my opinion, this will have a profound impact on markets, helping shore up confidence and it will stem the slide to deflationary depression.

According to stories circulating around the trading floor, Dow’s a thousand points of fright on May 6 is the result of a "fat finger" trade. However, trade data seems to suggest the catalyst could be some big fat cats doing "sell in May and go away".

Now that we’re all honorary members of the “Halfway To Hell Club”, a group of nineteen men who seemingly fell to their deaths while constructing the Golden Gate Bridge only to be saved by a crude and rudimentary net halfway down, I present this entirely fictional account of last Thursday’s market crash. Only the names were changed to protect the guilty.

Pickpockets are getting needy again ...

At this juncture of the crisis, there are only two choices: 1) do nothing and let the world sink into a deflationary hellhole or 2) do anything it takes to shore up the global financial system and look to restructure debt as the world economic recovery gains traction. I believe the Fed and the ECB will opt for the second choice.

Get ready. Something big is coming our way.

Call your Congress Critters before Ben and Timmeh have a chance to take them out to another really fancy dinner with perks ...

It wouldn't be if the U.S. and other governments hadn't done ALL OF THE WRONG THINGS ...

This article is for all those bull market geniuses, who buy the hype and who have been fooled into believing, yet again, that "this time is different".

Yesterday’s slide in the US stock markets further proof that the world’s financial markets are nothing more than a rigged casino where the house (Wall Street) holds by far the better odds in every game (currency markets, stock markets, derivative markets, commodity markets) it offers the mark (the retail investor).

Someone made money when the market plunged 700 points and someone made money when it went up 600 points. Liquidity has its good points and bad points. Without it the market would have cratered.

Six unique looks at yesterday's record breaking S&P 500 futures plunge alongside NYSE market internals with a few of our favorite tools ... the lowest NYSE Tick of the millenium, skyscraper sized daily & 1-minute down volume, ES 1-minute, ES Momentum Bars with ranges of 1 & 5

The global debt supercycle exacerbated income inequality, and the revolts we're now seeing in Greece will eventually spread throughout the world. Is Greece the straw that breaks the camel's back?