E Thomas St.

Green Shoots Are Poisonous to Your Wealth

Yeah, if only those Japanese were more positive, then they'd be fine. Do you have any more shallow pop philosophy tidbits to share with us?

On Jun 08 04:38 PM thiazole wrote:

> That has to be the most absurd thing I've every heard. 90% of the
> economy is psychological. The economy doesn't go bad to "punish
> bad behavior". If you don't understand that, then look into Krugman's
> analysis of the "Capitol Hill Babysitting Coop". It does a good
> job of explaining what you don't understand. If anyone was an economic
> terrorist, it would clearly be the pessimists who are trying to incite
> panic. The more people panic, the worse the economy will get. You
> can have all the fundamentals for a good economy and be in a never
> ending depression because of pessimistic psychology. Just look at
> Japan's economy.

Close to the End of the Selling Cycle

This stood out to me today as well. Wednesday (and Friday to a very weak extent) of last week was one of those days where the financial sector got beat down despite it being an up day for the rest of the market, and today the opposite occurred where the rest of the market took a hit but financials held about even or slightly up.

I don't think this is indicative of a turn around but it is interesting to note.


On Mar 09 12:56 PM The Mad Hedge Fund Trader wrote:

> The short squeeze is coming. Looks like there is a massive short
> covering play setting up in the financial sector. There was big hedge
> fund buying of calls and call spreads in the Financials Select Sector
> SPDR ETF (seekingalpha.com/symbo...) at the end of last
> week. The healthy components of this basket, like JP Morgan (seekingalpha.com/symbo...)
> (12%), Goldman Sachs (seekingalpha.com/symbo...) (7%), and
> Wells Fargo (seekingalpha.com/symbo...) (6%), are at record
> low valuations. The sick one like Citigroup (seekingalpha.com/symbo...)
> and Bank of America (seekingalpha.com/symbo...) are essentially
> at zero. This makes your downside risk very low. Watch this space.

The Shedlock-Schiff Affair: A Chronicle

Even if Mish is a nut, the question isn't invalid. Even if Schiff was "correct" what importance does that have given that he wasn't able to profit off being correct? Are there government grants for soothsaying now?