The market's meltdown Thursday has the "feel" that someone or a hedge fund is in trouble. I could be wrong but they might have a large leveraged bet that's gone wrong. I see some blaming HFTs for the collapse but where were they when HFTs were driving markets higher? Then portfolio managers and investors were happy they were around propping things up.
I was at an ETF Conference in February and all in attendance were so bullish. The "Arab Spring" was then in play and the buzz was something like: "The markets are going up on bad news and this is bullish!" Lost in all this sentiment was the impact QE2 was having, and was intended to have, on stock prices--lifting them higher. Sure, the multinationals were making money feasting on the weak dollar with outsourced jobs but nobody wanted to look under the hood at this. If insurance was sought by bulls it came wrapped in gold.
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