Today is a slump day (markets down over 1% by noon). Yesterday was a seeding day. Both of these effects are influenced by the
magical multiple which feeds the illusion of liquidity.
The Monday WSJ can be always full of insightful comments. The close of last week allows a breather and a better look (review). So, then, one gets the real deal prior to the week's openings. This past Monday was no exception. There are three articles that will be looked at here. Each has an image that is worthy of note.
- Stock Bulls Run on Shaky Ground -- Spencer Jakab -- iterates the theme of expanding multiples (we'll get back to Minsky on this) and cautions that there will be an implosion, eventually.
- How to Survive a Bear Market -- E.S. Browning -- provides a nice (squished via log view) look at the mania since the 1940. Why mania? Lots of reasons but see the next buller.
- Prepare for New Money-Fund Rules -- Kirsten Grind -- there is a little image (Ahh, remember 5%?) that I will augment showing how Ben/Janet have been thrashing the savers (taking us behind the woodshed - plus, flaying us to within an inch of skin) these past few years. So what? Well, conservative/stable approaches are more rational than not (somehow the brains [best and brightest - so called] have made life to be a joke, essentially game based without proper consideration of the issues - yes, unbalanced view abound).
...
Now, where else to talk about this continuing set of problems? Oops are all around; albeit, those who suffer are, for the most part, not party to the choices that affect them. ... But, we will get there. For now, see the notes about our research at
Fedaerated (in particular, Browning's article).
Here, we will show an image from each of the above with comments.
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Jakab's article: This approach does reduce things to a game where we can identify winners/losers in the sense of the metrics involved. However, Near Zero shows how those metrics are insufficient; in some (many?) cases, we look at the wrong thing. |
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Browning's article: See Fedaerated (link in above text). |
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Grind's article: Remember 5%. Lady, I remember 8%. With this image, I will overlay my experience over the same timeframe as a saver who was (is being) flayed by the Fed's policies. Yet, there is no complaint other than concern that it did not have to be this way (the players are too tied to their game to see). |
Remarks: Modified: 03/10/2015