The Dow Jones industrial average, which has had three days of swings of more than 400 points, is still down about 410 points for the week, although that was erased quickly as the market opened Friday.The problem . . . negative psychology . . . couple of days . . . What?
“Nobody knows how sustainable this is, but the immediate reaction just to the rumors about the steps yesterday showed that this has the potential of being the beginning of the end,” said Michael Holland, chairman of Holland & Company. “The problem has been negative psychology and the lack of liquidity and this move by the Fed and the Treasury may just be part of a solution to that. It’s been a crazy couple of days. In my entire career I haven’t seen anything as crazy as this.”
-Reported in The Times
400 point daily swings aren't indicative of, whadayacallit, a functioning market, but of a gang of panicked, headless chickens reacting to any bit of data with no holistic, synthetic, systemic analysis of just what the fuck is going on. Traders have absolutely no idea what they're doing, thus the wild gyrations. The notion that this is a "liquidity crisis" spurred on by sad-sack psychology, that the solution consists of a billion here, a trillion there in public-sector capital, is only that much more indicative that the geniuses running the store can't even read a balance sheet. I mean, the largest single financial entity in the world, which is the United States Federal Government is trying to rescue the so-called private economy by a.) absorbing trillions of dollars in debt obligations and b.) making multi-billion-dollar, off-the-books cash payouts from its own treasury. That ain't psychology; it's catastrophe.
I suppose this is all bad for my retirment account, but damned if I'm not enjoying it. Watching market apologists who believe that the storm is going to blow over and the ship right itself sometime in the next forty-odd days get swept overboard, food for crabs, is going to be even better. I caught a brief snippet of Kudlow the other day and thought to myself, Now there is a man with blood in his stool. At this point, these motherfuckers better hope the Large Hadron Collider swallows the fucking world. It's their only hope.
10 comments:
beets.
he thought it was the beet salad.
Jeez, IOZ I don't see what the big deal is - we can just print more dollars if we run out.
In a perfect world this would lead to the mass seppuku of the entire University of Chicago Economics Department. But I'm guessing Becker lives another day!
Does McCain know that his "greed is responsible" position is basically Marxist?
Swept overboard for crab food?
Which country have you been living in for the past dozen years, IOZ??
America is the only "meritocracy" in which people fail upwards. Just how many bad calls has Kudlow made over the years, and here you are still hearing him all over the media. Sure he's sh#tting bricks today but you're dreaming if you think there'll be somebody else's butt in his chair three years from now. I'm not saying it's your fault; it's the risk-averse, cowardly MSM who prefer to air familiar, bankable faces even if they're dead wrong most of the time.
We already know that the only way the mainstream press/political establishment takes you "seriously" is precisely proportional to the degree that you were wrong about the Iraq war. So we know most of these Perma-Bulls will still be gracing high-gloss financial magazines with their prose after this crisis because... well HALF OF THESE GUYS are the exact SAME PEOPLE who were wrong about the Iraq war and still have jobs.
well HALF OF THESE GUYS are the exact SAME PEOPLE who were wrong about the Iraq war and still have jobs.
WALTER
Those rich fucks! This whole fucking
thing-- I did not watch my buddies
die face down in the muck so that
this fucking strumpet--
"... holistic, synthetic, systemic analysis of just what the fuck is going on."
If I could do this, I'd have all the money in the world. If the collective "we" could do this, there'd be no need for a market.
Regarding market apologists (a.k.a. market commentators), they don’t know why markets move on a given day. All they know is that someone is paying them serious coin to fill air time. The topic is the market. Saying, “Market prices went up and down. I don’t know why.” and quietly running out the clock is not an option.
IMO, they are there to offer false assurance to the masses that someone somewhere understands what is going on and, presumably, can protect them from the unknown. For the rest of us, they have some entertainment value.
"You're goddamn right I'm living in the fucking past!"
Fine, then, consider me Dude-i-fied!
It good that we give credit where credit is doo doo----or not.
Time for a revolution--a Toilet Paper Revolution.
Given that they're going to shove Paulson's Plan up our ass with an assist from the Dems, might as well have some fun.
The Toilet Paper Revolution
Since Paulson is going to use the taxpayers' money to
buy securities worth less than toilet paper, here's a way to protest
that's low risk and potentially high impact:
Don't deposit your next paycheck or Social Security check. If you
actually receive a paper check, take it to the bank and cash it. In
return, give them a roll of toilet paper.
If you have direct deposit, go to the bank and withdraw the amount of
the check and give them a roll of toilet paper.
For one month, pay your bills with cash or money orders.
If you can't do that, at least withdraw what you spend on groceries and
gas and give them a roll of toilet paper.
It's low risk to the participants. No one gets fired for striking. No
one gets tazered for exercising their right of assembly.
But it might get the attention of the pols and the banksters.
It says, "Cross over this line and I'm dropping out of your fucked system."
"goin' south" is onto something.
Since the unanswerable question has long been: what is our legal tender backed by, the paper that we exchange is heading to the point where it will be "worth" little more than the paper we presently use to wipe our rears.
Our collective behinds are soon gonna be in perpetual arrears.
Inflation also seems to have been mysteriously disappeared from the MSM's sonar.
Case in point: my favorite gluten-free cookie has risen $.90 in less than six months.
It's going to be a long, long, winter.
Alvie Singer
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