this is a very interesting article.
it may make you think twice about the perceived rally we are in. is the rally a bear rally, a bull beginning, or a mirage that is going to turn very very ugly. It does help to explain some of the just ball buster spikes we've had in net institutional buying which is warped beyond belief. these levels of buying did not happen in the last bear, and only a couple times in the entire bull up to 07.
so this article poses some interesting thoughts on whats happening behind the scenes.
"Is it real, or is it memorex ?"
Black Swan of Black swans
1 reply to this topic
Posted 20 April 2009 - 02:52 AM
i was bored, so i read it. if all that really is a liquidity issue of note, then it could work in either direction. given all the FED pumping and gubmint fiscal stmulus and $9 Trillion on the side, it seems the most likely outcome is that the Black Swan of Black Swans (BS of BS, LOL) would be pooping on the shorts in ... A MASSIVE MELTUP!!!!!