Look Out Below?
By Barry Ritholtz - April 18th, 2011, 7:00AM
Markets look to be opening weaker today:
click for updated futures
Be back shortly . . .
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Comments
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
April 18th, 2011 at 7:41 am
I just read an article on moneywatch denying that stocks are overvalued. The next article in my reader feed was your, showing futures down. I find this amusing.
April 18th, 2011 at 7:53 am
Equity valuations are Rich..and, seemingly, more people are starting wonder where the ‘new growth’ will coming from..
also, Charts like these http://finviz.com/futures_charts.ashx?t=SI&p=w1 http://finviz.com/futures_charts.ashx?t=DX&p=w1
are causing peep to reconsider their ‘denominator’ ?
April 18th, 2011 at 8:01 am
True Finns bailing out on bailouts! (This is what happens when you allow the little people to have a voice in decisions dammit!)
http://www.reuters.com/article/2011/04/17/finland-election-idUSLDE73G02L20110417
April 18th, 2011 at 8:19 am
Saved by Zero. Moodys cuts Irish bank bonds guaranteed by the Irish gov to junk, same rating as their stand-alone bonds which means they think the open ended gov guarantees are worthless. So after the government indebted at least one generation with 35B euros costs, imposed austerity on ordinary taxpayers to save european bankers hides, and changed a gov Moodys determines it was all for naught.
PIIGS bonds should be in for an exciting week!
http://www.irishtimes.com/newspaper/breaking/2011/0418/breaking9.html?via=mr
April 18th, 2011 at 9:52 am
BR noted:
Markets look to be opening weaker today:
reply:
————
True, but money has to flow somewhere. Will it flow to commodities and make the world too expensive? Will it flow to bonds; European or otherwise? How about Latin America or Emerging Markets since they have all been so oversold lately? Where will three more months of Fed bond purchases go? HFT will not permit it to just sit there. Remove commodity inflation and stocks aren’t too bad of a place to be.
April 18th, 2011 at 10:06 am
And they are sinking like a stone on S&P’s announcement. The market still takes S&P(or any of the big three) seriously after last decade?
April 18th, 2011 at 10:11 am
The S&P downgrade is a warning shot to Eric Cantor, but I doubt he’ll see it that way…
April 18th, 2011 at 10:20 am
S&P strikes. It is about DAMN TIME!!!! Now Moody’s needs to step up to the plate. I seriously don’t give these guys any credit until they actually cut the rating…. Then I will believe they have grown a pair, or atleast their other ball has dropped.
April 18th, 2011 at 10:30 am
dead hobo;
Maybe the money will not flow into investments at all. I for one have been putting more of it into cash. Same for big corporations. Only those who live off their wealth and need a certain stream of income are forced to put money into something that give a return in spite of risk.
April 18th, 2011 at 3:31 pm
DeDude Says:
April 18th, 2011 at 10:30 am
dead hobo;
Maybe the money will not flow into investments at all. I for one have been putting more of it into cash.
reply:
———-
Unless you’re putting currency into coffee cans and placing them under the bed or using the cash to buy things, there’s no such thing as ‘cash’. Your ‘cash’ becomes someone else’s investment in something.
April 18th, 2011 at 3:35 pm
Money has to flow somewhere?
Where did all the money from foreclosed upside down mortgages flow to?
I guess you could say it flowed back to where it came from… thin air.
In polite company, they call it deleveraging.
April 18th, 2011 at 6:19 pm
@dead hobo:
You wrote:
The money neither flows to commodities, nor to bonds, nor to stocks, land, other currencies or what asset class ever.
It only flows from the previous holder of the money to the new holder at any transaction; and the asset changes owners the opposite direction at the same time.
April 18th, 2011 at 6:38 pm
dead hobo,
“Your ‘cash’ becomes someone else’s investment in something”
I know that is the rule under normal circumstances, is it not build on presumptions regarding money supply and leverage that may not apply to todays world? Is it not possible that the banks throw my deposits directly into the abyss that divide mark-to-market from mark-to-imagination?