Financial topics

[Higgenbotham]

Right, a, no luck. Fact is, the Kremlin has to be sitting on their stools swilling vodka and laughing their asses off each time the US voters go to the polls. I'm surprised Putin can keep a straight face in public.

Getting back to the stock market, the futures market is dead tonight. There's little volume or price movement as it sits near Friday's high but has not exceeded it.

1929_dOW_CRASH.jpg (93.35 KiB) Viewed 5404 times

[John]

I don't know if this is related to the dead stock market,
but this has been just about the deadest news day in
a long time.

[Higgenbotham]

Something I've seen many times - the market will make a new high or low for the move on Friday afternoon. Come Sunday night, in the first 2 hours, there will be one last panic out for those who are caught on the wrong side of it, presumably after they have had all weekend to stew, and finally decide to pull the plug. Then the market will turn. I've been guessing that if this is a major turn today may look more like the day after the 1929 or 1937 high.

[aedens]

I will pay attention when crude breaks. Vodka knows this lesson just as does Whiskey, as does Rum, and Saki.
I will look a LEI later and PMI already checked DBI.

[Higgenbotham]

I think the events and psychology are supporting John's theory that we have not seen real generational panic yet.

[aedens]

http://chasvoice.blogspot.be/ These guys will give you ear full here.

[Reality Check]

If Sunday was a slow news day,

Monday not so much.

Dell computer bought out,
Obama to accelerate strategic disarmament of U.S. to "Save money - but not sure where",
A Pope resigns for the first time in 597 years.

[Higgenbotham]

It's hard to guess what the particular fantasy is that drives the current bubble mentality but if I had to guess it's twofold, the first part (as previously stated) was that some have bought into the idea that rising interest rates mean there is economic growth over the horizon...

"TNX (ten year note yield): Bond yields are going much higher as the market begins to anticipate stronger economic growth. The first upside yield target for the 10 year is 2.50%."

http://carlfutia.blogspot.com/

Carl seems to be an accurate market observer. I don't see him saying there will necessarily be stronger growth, but that the market will interpret rising rates to mean stronger growth is coming.

I will pay attention when crude breaks.

Silver, copper and crude made new lows for the month about an hour ago.

[Reality Check]

.
.
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Good News - Government Debt under Control - Mission Accomplished
.
.
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http://www.washingtonpost.com/business/ ... print.html

[aedens]

Basket comm one year snapshot. We got room to adjust. Traction forward, not convinced. Governments
causing market dislocations? Yes the needle is raising up to full retard mode in some zones.
FOMC opens mouth and states obvious we are paying extortion money for our sins on the backs of taxpayers
and we own your tribe anyway.
Lots of noise today - but stocks and bonds tended to stay close together as suggested the other day
for non keynesian thought map.

http://www.bloomberg.com/news/2013-02-1 ... helps.html

Expectation models. Democrats have no idea at all.

The consumers are merciless. The corruption of the regulatory bodies does not shake his blind confidence in the infallibility and perfection of the state; it merely fills him with moral aversion to entrepreneurs and capitalists. No one should expect that any logical argument or any experience could ever shake the almost religious fervour of those who believe in salvation through spending and credit expansion. The final outcome of the credit expansion is general impoverishment.
By short-circuiting the price mechanism and forcing people into economic lives contrary to their own chosing, central planning destroys the capital base and creates economic randomness that eventually ends in killing prosperity.

http://library.mises.org/books/Ludwig%2 ... 0Chaos.pdf

The interventionists do not approach the study of economic matters with scientific disinterestedness. Most of them are driven by an envious resentment against those whose incomes are larger than their own. This bias makes it impossible for them to see things as they really are. For them the main thing is
not to improve the conditions of the masses, but to harm the entrepreneurs and capitalists even if this policy victimizes the immense majority of the people.