MSA

Five Reasons the Market Could Crash This Fall

Mr. Summers is a crying fool, wishing he had gotten in on the correction run-up, and now hopes to create fear and angst and set off a market crash for two reasons:

1) To prove himself correct (his ego rules his opinions and emotions as can be read between the lines of his fear-monger based article); and

2) To buy into the market at lower prices.

First of all, Mr. Summers contention that HFTP make up %70 of market volume is absurd. And I challenge you directly, Mr Summers to show us the data/proof of this claim. Also, no matter how many times you slice and dice a 15,000 share order, when all is said and done, it is still 15,000 shares that have traded hands. Yes, there is some back-and-forth microsecond trading going on, but no to the tune of %70 - give me a break, Mr Summers, this claim is ludicrous and unsupportable.

Secondly, yes, the CDS world is a potential time bomb, that could easily wipe out some very large financial entities (ala AIG). But the 1 Quadrillion dollar amount is another figure that Mr. Summers must provide real proof of - outside of pulling it out of his ass. Again, Mr Summers, I challenge you to provide substantiating proof of your claim to the notional amount of CDS's slinking around the world. Further, Mr Summers, in his best "doom and gloom" fear inducing logic, conveniently forgets the "exchange" effect of monies paid out under credit default swaps (one entity gains what the other pays - nothwithstanding the muliple liabilities of a default swap sold multiple times, as did AIG).

Thirdly, Mr Summers, must be very new to the market, or is simply trying to re-style the market as a follower, as opposed to its historical function as a leading indicator. Green shoots may be difficult to see, and very delicate, but change always begins in small ways - everything cycles, from high to low and all there is in-between. So as to make this correction seem unreal/aberrational (which is impossible for a market to be as it is the sum of real numbers), Mr. Summers states the correction run-up is the greatest "short squeeze" of all time; this again shows Mr Summers inability to understand markets. Yes, short covering is a factor of any reversal, but the real tales of markets are "Oversold" and "Overbought"- these conditions are inevitably corrected. No one can argue that when the Dow went from 14,000 to 6,500 it was not Oversold - but many would not touch the market at 6,500 with a 100 ft. pole, only because they were "afraird". - only those who had the nerve, and a clear understanding of market dynmaics were able to overcome their fear (emotions) and put money into the market. Mr Summers, is/was not one of these clear, unemotional, thinkers.

Yes, the market may have come "too far too fast", but who is the judge of that - certainly not Mr. Summers. In this article, Mr. Summers is emotionally, and egotistically venting - he sat, and sat, and sat and watched the market rise, and rise, and rise, and now he is pissed, knows he missed the boat, and just can't admit he was wrong. So, Mr. Summers, takes out his pen, and says "I'll show the world I am right - I'll put the fear of God into anyone that is buying into this market - and by golly I WILL BE RIGHT ! ! ! " - just watch the market crash after "they" ( Mr Summers thinks his article will reach and affect everyone) read MY article".

Poor Mr Summers, you really ought to keep your emotions in check. The market does not care about your crying, and your doom and gloom, it just does its thing, Up and Down, This Way, and That Way, and no matter how much you wish/want it one way or the other, it will do what it does, regardless of you.

Sure, the market may retrace much of or all of its gains since March 9, 2009; I don't know what it will do. But I sure as hell don't think I am so knowing, and nor am I so afraid of the "boogie man" that I sit frozen in indecision, convinced that "I am right - and the damned market is wrong".

As the market moves, a smart man moves with it.

GLTA

AckerInvesting

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