Thursday, July 1, 2010

More Thoughts

I do think a hard market turn is coming - but from what level?

This seems kind of astounding to write, but this market may be more manipulated than I think we saw in 2008.

We have literally fallen 300-350 Naz points on essentially neutral news at worst. We need an uptick rule now and we need one badly; or we risk losing the whole global financial system again like we did in 2008.

I'm still shocked and amazed that the powers that be are willing to throw so much money into the system and let it get vaporized by a set of market rules that are anti-everything related to positive capital formation.

Will someone get on the "uptick rule, CDS, futures limits" horse again?

I would describe trading conditions as dire, as we are literally killing capital formation, economic growth, sentiment, as well as any global political goodwill that our Fed had engendered.

And by the way - Euroland isn't helping much by letting the CDS market rule their fate. That is just idiotic.

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