Thursday, October 16, 2014

Weighing in

Moral: Wherein we stop to weigh in. At least, we got the memes right.

The context? We're now six days in to a string of losses in the U.S. markets. So, while things were going down from 17k to 15k (quick bounce) and back to 16k (lower realm), we had to wonder how long it would take for the coo-coo, goo-goo to start.

Well, it was later than expected. You see, the opinions of the blogger about the ca-pital-sino firm up on the downturns. Why? That is the time of the profit-takers.

Who pays for the upswing? Again, forget the cheshire multiple aspect. We know that some of this is from the hapless being pulled in by the media and other market sellers. Too, though, some type of pump priming goes on.

How to get to the bottom of this? Well, there is a lot of work to do.


For now, let's just enjoy a take from Financial Times. They're talking "After QE." Then, they use stabilizers as the next thing needing to go to have a "real" market. As in, not one partying like mad as the Fed keeps spiking the bowl.

You see, too, the financials need (more than they admit) the government support. How is this different than the lowly ones being dependent upon government assistance?

The problem? These financial types rake in the dough as there is mis-allocation of capital (from the pockets of the hapless to that of the fat cats) on these upswings. And, their pockets bulge when there is the downturn (actually, their selling causes the downturn - profit taking, big time - we need to get back to the buyer-seller thing).


Wait, today, too, we get the golden sacks head talking up the Fed. Sure, asking big daddy (or is it sugar mommy?) for continued handouts. How is that different from what we see of panhandling? Tell me, please.

Remarks:  Modified: 10/21/2014

10/16/2014 -- Sandbox in the players. Let the plumbers handle the systemic issues. 

10/17/2014 -- So, the St. Louis Fed guy talks coo-coo, and the markets soar today. One has to wonder whether we're seeing more suckers come to the table or if this is from a serious priming the pump attempt. In the case of the former, eventually, the sucker set will diminish to be of no help. The latter? Needs more study.

10/21/2014 -- Fed talking to Banks about their culture.

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