Financial topics

[Higgenbotham]

I consider a rising stock market to be another wasting process. It's a variation of "bread and circuses" or employing people in make work doing nothing productive besides recycling money. It's about liquidity excess finding an object of speculation on a rotating basis so as to divert attention. The technicians are indirectly measuring money flow, which is why they are successful. The stock market has nothing to do with GD as of yet. I don't know what stops the money flow into the stock market or taxpayer funds into the coffers of corporations, transferred by politicans that their lobbyists bought and paid for.

Case in point, I read a Federal Agent was inspecting school lunches and deemed a child's lunch to be unfit; the child was then forced to eat chicken McNuggets. Anybody looked at the price of McDonald's stock lately? Is there a method to this madness?

http://www2.nbc17.com/news/2012/feb/16/ ... r-1937027/

[Trevor]

Well, we have at least three bubbles at the moment: the stock market bubble, the housing bubble, and the credit bubble. The housing bubble has a ways to go, but it's already in the deflation process, while the other two have yet to reach that point.

[aedens]

Well, we have at least three bubbles at the moment: the stock market bubble, the housing bubble, and the credit bubble. The housing bubble has a ways to go, but it's already in the deflation process, while the other two have yet to reach that point.

You missed one. http://www.zerohedge.com/news/completed ... ves?page=1

[John]

Well, we have at least three bubbles at the moment: the stock market bubble, the housing bubble, and the credit bubble. The housing bubble has a ways to go, but it's already in the deflation process, while the other two have yet to reach that point.

You missed one. http://www.zerohedge.com/news/completed ... ves?page=1

I'm not sure that this is as unexpected as Zerohedge seems to be
saying. It's been known for a while that all the private investors
would take a 70-75% haircut, while the ECB will take no haircut, and
this is the implementation of that policy.

Greece is going to retroactively change the laws governing their bonds
(CAC or collective action clauses), to screw the existing bondholders,
as Zerohedge says. That's because the bonds were issued under Greek
law.

However, as I understand it, Portuguese and Irish bonds were issued
under UK laws, so no CAC trickery will be possible -- or so I've
heard.

John

[aedens]

All bonds are subordinate now in the EU, er will be...
EU asked England to, lets call it join, and what can they post as surety
on England balance sheet?

[John]

All bonds are subordinate now in the EU, er will be...

Do you mean the EU or the eurozone? The UK is not in the eurozone.

John

[Higgenbotham]

Feb 8, 2012, Primary Dealer Treasury holdings of Dealers surged to $102 billion.

This can mean that the "good news" out of Europe is for public consumption but the insiders expect a crash (liquidity crunch to be more accurate but crashes go hand in hand).

[aedens]

The Confederation of the EU. I assume the collateral was the issue all along.
I do not know how much the Brits have in Greece per se as vested interest
or lets say equity.

[aedens]

Feb 8, 2012, Primary Dealer Treasury holdings of Dealers surged to $102 billion.

This can mean that the "good news" out of Europe is for public consumption but the insiders expect a crash (liquidity crunch to be more accurate but crashes go hand in hand).

My intial thought was to check the shorts as needed. I expect as some the Euro will get hammered as they sort
this issue out. I got out the way some time ago. Larger issue at play which merge on energy plays.
The US is now forcing the EU to cut off Iran from Brussels-based SWIFT - the independent telecom mechanism/clearinghouse
used by every bank in the world to exchange financial data
(its official name is Society for Worldwide Interbank Financial Telecommunications).
Iran's Central Bank itself may become a victim.

[Higgenbotham]

Awhile back, I mentioned that the fourth quarter GDP had come in at 2.8% but 1.9% of that was inventory build.

The Dow Jones Transportation Index is has been down all month, corroborating the fact that the inventory is in warehouses but is not being shipped.

http://www.marketwatch.com/investing/in ... style=1013