Monday, July 23, 2012
A Reason for Everything
Now that the Large Banks and Hedge Funds are pushing all the markets in random directions as retail investors flee into the illusory safety of US DEBT - the copy writers at CNBC, FOX and BLOOMBERG need a host of new reasons to describe upward movement of risk assets.
Here are some of the most popular new causes for market euphoria:
1} Things (manufacturing, durable goods orders, unemployment etc) are contracting at a slower rate.
2) Things (housing, unemployment rate etc) appear to have bottomed. (if you look at them kind of sideways and squint a little.)
3) A new Bail-out Fund has been created.
4) Billions of freshly created currency units are added to existing Bail Out Funds
5) Absurdly lax safety regulations and standards (bank capitalization standards, accounting standards) have been further relaxed.
6) Drastic Emergency regulations have been implemented (rules against short sales, rules limiting capital flows).
7) and the current favorite cause for euphoria: Disaster has been temporarily delayed.