Active Traders Become Frustrated with Market [View article]
What do you mean? It's a great market to trade.
The FASB accountants favor the short sellers, therefore they continue to keep the FAS 157 in place. Keep shorting the financials and the market! That's the way to make money in this market.
Totally Disconnected: US Government Risk, Ratings, Bonds and Equities [View article]
Forget about the fundamentals. Technicals now rule!
People should short the SP500 until the government (the SEC) realizes that the market is structurally unsound. The allowance of naked short sales and the repeal of the uptick rule have sealed the fate of the stock market fourteen months ago.
Margin Debt Down 37.6%; Is The End of Selling Near? [View article]
The end of the selling will never be near. The market is structurally broken! STRUCTURALLY UNSOUND AND BROKEN! The sellers can still naked-short and pile on thanks to the repeal of the uptick rule.
You don't have a clue. Bernanke is doing whatever he can to corret the problem. This is the only correct way to avoid a depression.
It was the change in the accounting rule (FAS 157), the repeal of the uptick rule, unregulated CDS, and the condonement of naked short selling that brought the financial markets down. It is incredible when smart people cannot see the root causes of this meltdown and deal with them directly. People are running around with the heads cut off!
<<If sound economic policy is the key to avoiding Japan's fate then we might as well call it a wrap and assuming that our lost decade has already begun, Congress doesn't have a clue , the Fed is trying to fix a problem caused by cheap money with more cheap money, and most of the government's so called solutions ignore systemic problems and instead address mere symptoms.
It's hard to have much faith when the government's solutions are likely to make things worse, and the key weapons in their arsenal are taking on more debt, printing money and attempting to deflate their way to an economic recovery. Considering that we live in a time when our Congress is berating undercapitalized banks for not increasing their lending volume, it goes without saying that our policy makers may actually be a bigger problem than the systemic issues that created the crisis in the first place.>>
What Corporate Yield Spreads Are Telling Us About Equities [View article]
CDS spreads are being manipulated by market makers. Because, the market makers know as a group, they can gang up and kill any company at any time using the current tools: repeal of the uptick rule, free two-day naked shorting, widening CDS spreads, unlimited shorting via ETFs, options, futures and synchronization of attacks througn multiple exchanges, gaining fire power around the world by creating rising volatility!
Paulson's Plan Fails to Understand the Problem; Madoff Is a Perfect Example [View article]
I've lost confidence in Paulson and Bernanke. The solution is right in front of them, but they still don't do it.
Everybody knows that FASB 157 is dangerous and pro-cylical. Banks and other consumer finance companies do not want to sell their loans because the spread is wide. The spread is wide, because of credit uncertainties and forced liquidations or write-downs because of FASB 157. It's a vicious circle.
The FASB accountants can easily suspend FAS 157 and come up with new accounting rule to mark-to-market every single items on and off balance sheets for information purposes and liquidity purposes. That will provide transparency as investors demand it without destroying regulatory capital of all financial institutions.
Without FAS 157, securitization will return to normalcy, and banks will make loans again.
Bernanke and Paulson made a huge mistake allowing Lehman fail. That was why the global financial system imploded. Now, these people lack skills and foresight by supporting FAS 157. The results show!
Our Economic Crisis: The Grand Experiment [View article]
Other disatrous experiments you failed to comment on: FASB 157, the repeal of the uptick rule, the allowed naked shorting by market makers, and the leveraged ETFS.
A Long and Painful Consumer Slowdown - Barron's Interview [View article]
Deleveraging was caused by the rise in interest rate and FASB 157. Now, interest rates are lower. Securitization process is being fixed. FASB 157 is pro-cyclical. Be prepared for the surprise surge in buying by consumers.
The Lehman bankruptcy caused an implosion of global credit. The data make sense. But the data may be a few weeks late, as bank loans have exploded in recent weeks.
It's more like a deflation short-term. Everything is deflating right now! After they fix the securitization process, inflation will surge back quickly.
Has Irrational Anguish Unduly Decreased Asset Values? [View article]
Have you ever heard of behavior finance? It says that investors are irrational at times.
When the trading and accounting rules have changed, investors just react to the fear and flee. They do the right thing, because the stock market is rigged to the downside. It is structurraly unsound!
Constant 'Bottoming Process' Calls Are Meaningless [View article]
The market has changed. The SEC changed a few trading rules such as the repeal of the uptick rule. The FASB accountants changed the rule with FAS 157 in November 2007. Bottom calling is an exercise in futility because of these changes.
Active Traders Become Frustrated with Market [View article]
The FASB accountants favor the short sellers, therefore they continue to keep the FAS 157 in place. Keep shorting the financials and the market! That's the way to make money in this market.
Credit Where Credit Is Due [View article]
Just imagine the world where consumers cannot buy houses,cars, TVs, etc. using credit.
Does anybody like to live in Russia? They use little credit!
Totally Disconnected: US Government Risk, Ratings, Bonds and Equities [View article]
People should short the SP500 until the government (the SEC) realizes that the market is structurally unsound. The allowance of naked short sales and the repeal of the uptick rule have sealed the fate of the stock market fourteen months ago.
Margin Debt Down 37.6%; Is The End of Selling Near? [View article]
America's Own Lost Decade [View article]
It was the change in the accounting rule (FAS 157), the repeal of the uptick rule, unregulated CDS, and the condonement of naked short selling that brought the financial markets down. It is incredible when smart people cannot see the root causes of this meltdown and deal with them directly. People are running around with the heads cut off!
<<If sound economic policy is the key to avoiding Japan's fate then we might as well call it a wrap and assuming that our lost decade has already begun, Congress doesn't have a clue , the Fed is trying to fix a problem caused by cheap money with more cheap money, and most of the government's so called solutions ignore systemic problems and instead address mere symptoms.
It's hard to have much faith when the government's solutions are likely to make things worse, and the key weapons in their arsenal are taking on more debt, printing money and attempting to deflate their way to an economic recovery. Considering that we live in a time when our Congress is berating undercapitalized banks for not increasing their lending volume, it goes without saying that our policy makers may actually be a bigger problem than the systemic issues that created the crisis in the first place.>>
What Corporate Yield Spreads Are Telling Us About Equities [View article]
Paulson's Plan Fails to Understand the Problem; Madoff Is a Perfect Example [View article]
Everybody knows that FASB 157 is dangerous and pro-cylical. Banks and other consumer finance companies do not want to sell their loans because the spread is wide. The spread is wide, because of credit uncertainties and forced liquidations or write-downs because of FASB 157. It's a vicious circle.
The FASB accountants can easily suspend FAS 157 and come up with new accounting rule to mark-to-market every single items on and off balance sheets for information purposes and liquidity purposes. That will provide transparency as investors demand it without destroying regulatory capital of all financial institutions.
Without FAS 157, securitization will return to normalcy, and banks will make loans again.
Bernanke and Paulson made a huge mistake allowing Lehman fail. That was why the global financial system imploded. Now, these people lack skills and foresight by supporting FAS 157. The results show!
Our Economic Crisis: The Grand Experiment [View article]
Has a Market Reversal Happened? [View article]
A Long and Painful Consumer Slowdown - Barron's Interview [View article]
Now, interest rates are lower. Securitization process is being fixed. FASB 157 is pro-cyclical. Be prepared for the surprise surge in buying by consumers.
ECRI: Economy Remains at Cycle Low [View article]
The Market Rally Has Legs [View article]
Where Was the Inflation? [View article]
After they fix the securitization process, inflation will surge back quickly.
Has Irrational Anguish Unduly Decreased Asset Values? [View article]
When the trading and accounting rules have changed, investors just react to the fear and flee. They do the right thing, because the stock market is rigged to the downside. It is structurraly unsound!
Constant 'Bottoming Process' Calls Are Meaningless [View article]