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Problems with the media vis a vis finance is nothing new. And remember: "It is not the critic that counts; not the man who points out how the strong man stumbles or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena whose face is... More
  • Is "Greece" worth a thousand Dow points? 0 comments
    May 8, 2010 11:17 AM

    The "Ghost in the Machine" that was experienced on Thursday requires an explanation and I highly doubt we'll be getting it from the government or the NYSE/NASDAQ.  The sole avenure for their investigation will be "why did the markets not function normally" thus causing a need for the agents of "buy low sell high" to disallow such activity for the afternoon.  In short--"causation is impossible to prove" nor will the government or these two organizations try.  We can speculate however on what could cause such spectacular offer prices for equities such as Proctor and Gamble and Accenture.  Can anything be better said than the explanation "no buyers"? If I'm "the institution" I think not.  The question for you and me the proverbial "buyers of the lottery ticket" therefore is "who sold"?  Obviously, "somebody for whom money has no meaning."  When "beyond belief" funds are owed from one government to the next "strange things happen."  I believe the title of the book was "Free."  And this of course is the "essence" of market based economics.  In a rational world you get the most irrational of activities because it is overlayed with "debt" and "questions of repayment."  In "market speak" the inability to repay is relayed to us on the airwaves as "a loss of confidence."  In reality of course it is "liquidity event" in which a VERY large enitiy or organization simply runs out of money and fails causing some individuals to "get things for free."  The irony of course is that "there's money everywhere" when dealing with governments.  But like the police "it's never there when you need it, only when you don't" and of course in dealing with governments "they tend to give things away."  In short, Greece maybe only needed 25 billion, but 2 months ago, and by the time the "monetary police" arrived it was too late.  This resulted in something "for free."  Basically "Greece" became simply "1000 down on the Dow for a few minutes."  Speculation for sure...but kind of cool if you think of it.  Indeed shouldn't we want "more days such as Thursday?"  Now onto the question of why trading is sometimes illegal on the NYSE and NASDAQ....

    Disclosure: why have a gold standard when you can have this?

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