I caught this on Zero Hedge today and I wanted to make sure that everyone had a chance to watch it.
Joe tells it like it is in this interview. I loved it! The market and the economy couldn't be further apart, and its turned the stock market into one giant speculative casino.
IMO, the distortions between where the market is trading versus how the economy is doing is setting up the bulls for a major beatdown unless the economy recovers sharply. At the same time, its hard to call tops and fight the trend. Good stuff!
2 comments:
Agreed! Very good points. Sometimes I feel like I am the dummy when the market keeps rising but the real economy has been propped up with accounting tricks, stimulus packages that are not sustainable. I am going to be real anxious to see how the automakers fair 6 mo.s from now without government intervention. I'm in the banking industry and right now we are thinking the worse is yet to come, we are doing 1/3rd the volume we were. Thanks Jeff for posting the vid!
Anon
YOur welcome
How about the fact that 25% the trading is done in 5 stocks?
Crazy.
The bond game continued today.
Bond market sold them off heading inot the auction then got the auction done which took treasuries higher.
PD's then sell them and make the spred.
Going short TBT after a moonshot rise in yields the day before an auction is a nice trade guys.
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