Nasdaq 2,803.32 +19.99
SP500 1,333.27 +10.33
30-yrBond 4.30% +0.00
GLD 147.49 +1.84
SLV 34.18 -0.08
PTM 20.76 -0.00
XLE 74.63 -0.09
XLF 15.72 -0.22
VXX 22.76 +0.22
Dollar index 75.43 +.31.
Bill Cara had a great weekend review article recently. In part:
This is a time, when capital markets are not free, i.e., when the public sector is in control of the private sector, that astounding events occur, such as political uprisings and revolutions. On the one hand, you have people who want to be free and on the other you have people who want to organize them, for good reasons or bad.
This is also a time when there are waves of activity, first when Interventionist policy tries to lift the value of assets, trying to bring them closer in line with the liabilities. This is the so-called risk-on trade. But, after a while, the system of finance and economics gets stressed as commodity prices start getting out of hand, exerting sufficient pressure on costs of living that people start taking power into their own hands. As a result, the policy of the Interventionists is changed to try to reduce the liabilities in the system by forcing creditors in their jurisdiction to write off debt, once again trying to bring assets in line with liabilities.
...
The next wave will be pressure to reduce liabilities. Central banks and credit markets will tighten. Asset prices will drop. Reserve requirements for the banks will be raised. Margin requirements at the futures exchanges will be raised. Commodity and equity prices will fall and HB&B [Humungous Bank & Broker] will be sending out more margin calls. More banks will fail.
[USD will strengthen.]
GS 134.99 -4.35. The Goldman Sachs Group. 52 week range 129.50 - 175.34.
LNKD 93.09 -1.16. LinkedIn Corporation. IPO this week. Very high valuation.
No comments:
Post a Comment