Friday, October 7, 2011

Monday Thoughts

When the book is written, we will find out that a good portion of the selling over the last two days was redemption-related.

Rumors abound that several financially heavy funds have been liquidating their bank and non-bank financial holdings over the last week.

I believe that redemptions are an important reagent to the recent selling, so I believe this one.

Why is the decline in the markets (and the technical breakdown) picking up steam?
Why are there such obvious signs of recession/deflation when the numbers do not indicate anything near a recession of late?
Why are GS and MS reeling under such continuous selling pressure?
How significant are the hedge fund redemptions?
What is the catalyst to reverse the market's decline?