16 replies to this topic

[A-ha]

Btw XD, make the call anyways. If it doesn't work, so what

No, I wanna be famous. I wanna be the guy going fully short on spoos the day before

Edited by xD&Cox, 07 January 2007 - 01:42 AM.

[briarberry]

credit bubble watch, could this be the final blow off stage in credit expansion ???


Worldwide, an abundance of liquidity has lured investors into riskier assets in search of higher returns. Though there is no agreement on how to measure liquidity, using the global supply of dollars as a proxy, The Economist estimates that in the past four years it has risen by an annual average of 18%, probably the fastest pace ever

http://www.economist...tory_id=8496988






the liquidity pool seems to have sprung a leak (I dare say you've all seen it by now) , subprime mortgage backed security prices still falling, money going to money heaven...





China has turned off the tap a little...

Jan. 5 (Bloomberg) -- China told banks to set aside more money as reserves for the fourth time in seven months to prevent a rebound in lending and investment in the world's fastest growing major economy.

China, which raised interest rates twice last year to reach 6.12 percent, wants to prevent cash generated by a record trade surplus from being channeled through bank lending into investments.

http://www.bloomberg...6...&refer=asia

Edited by briarberry, 07 January 2007 - 07:17 AM.

[snorkels4]

could somone paste long term dow next to this?::

[jawndissedi]

The Economist has written a very misleading article.

"The deluge of spare cash has two main sources."

There is no deluge of cash. Only CBs can print currency and, as anyone looking at M1 or equivalent foreign measures can see, they most certainly have not been doing so. The illusion of liquidity stems from a phenomenon that Doug Noland has described as "the moneyness of credit." His superb analyses on this subject can be found here and here.

Malcolm Gladwell, author of "The Tipping Point," has a fascinating article in the latest New Yorker describing how most of Enron's problems were visible to anyone who took the time to scrutinize their financial statements prior to the company's meltdown. The same thing is true of the credit markets today. Traders and investors who fail to do their homework today will be looking for scapegoats to to blame when the wind up as bagholders later this month or year. I will have no sympathy for them.

[slupert]

http://www.investors...age_id=16025532

[briarberry]

The Economist has written a very misleading article.

"The deluge of spare cash has two main sources."

the Economist is written in order to appeal to a wide audience, hence they do tend to simplify things a bit

[snorkels4]

could somone paste long term dow next to this?::

dollar not dow