KSengineer

Key Factors Driving the Market

Can someone explain this "sideline" money to me. Every time a stock is sold, an equal amount of money is exchanged. For every dollar going to the sidelines via a sale, a dollar must come from the sideline via a purchase.

I can understand money flowing from bonds to stocks, or cash being added to workers 401k's each month or companies purchasing their own stock.

What am I missing? What is meant by "sideline" money?

On Jul 23 09:08 AM Roger Knights wrote:

> Don't forget money on the sidelines as a driver.

Tipping Point for U.S. Treasuries?

Thanks! Terrific article.

Whistling Past the Graveyard?

Great article! Telling it like it really is and with a bit of humor mixed in. I I wish those in charge would take what was written to heart:

"Not only is it hastening the early death of the victim, it's also killing an opportunity to solve the problem and take steps toward a sensible treatment that will lead to a cure."

I have no hope our leaders will ever do the right thing. But, then, "we the people" have asked for it. And we are about to receive it. The ultimate blame lies with US, collectively.

This country is in serious trouble and the current administration is doing all it can to hasten the demise.

Wall Street Breakfast: Must-Know News

"Bernanke suggests need for new regulatory approach"

II have a sneaky suspicion that if Fanny and Freddie would have held their standards at the expected level all along, our current problems would be much smaller and confined to the private sector where the risk/reward equation could be working it’s magic without bringing the entire system down.

What I mean is if Fanny and Freddie would not have purchased those innovative investments, like CDO’s, which contained non-conforming loans and would have limited themselves to purchasing investment paper that conformed to the same risk level as CONFORMING loans are supposed to represent, my guess is this contagion would have been greatly limited. But they set the tone by purchasing high risk investments.

So, it seems to me we already have the regulations in place. What we don’t have is the discipline to live by them. The government set the bad example and now they want to regulate more. Someone needs to bring some sanity to the system. Unfortunately, I don’t’ have much hope that will ever happen since greed and self-interest is carrying the day in the USA.