BB:" Engineering to Captain Kirk..."
...damage (x_x) report :
siliconinvestor.com
>will know it's over when we get the exhaustion gap down on this one (CPQ) ...
...imho, it won't be over until the cost of kapital stops going up; ie., an exhaustion gap up on TYX.X or, gap down = morning star or a hammer on US99Z - Bond Futures. Gots to be one of the worst years on record for bondz.
And that's a bummer... equity kapital + bond kapital being simultaneously destroyed, rather than flowing back and forth. Kapital's gotta be goin' somewhere - not all of it is being 'destroyed'. "Oh, I'm not puttin' it into bondz it's safe - I'm just holding it in money market funds at ~4.5% "
Cash = MoneyMarket is also = USD currency = ~DX99Z - Dollar Index, and that kapital looks "safe" but, in reality is what, down -6% since June ?
So, "cash" is actually kapital being destroyed, too; if you're long cash you're short JYen & euros, baby.
Still, won't get ugly until folks try to sell kapital = real estate... find fewer buyers because Greenspan has screwed up - taken out the liquidity in the housing mortgage market - and that kapital base will decay and/or stagnate along with stocks, bonds and cash=currency.
Hello, want to buy my house ?
Uh, sorry - mortgage rates are too high and, me an my American Worker spouse will just hunker down here, put off buying anything for awhile - you wanna buy my car ?
That's what's messy about capitalism... "interest rate hikes" are like a "broad-based anti-biotic" - instead of directing, re-distributing wealth = kapital gains flows from one form (equities) to another (savings/bonds, etc.) we have to endure these remedies = periods where all kapital gain states are being destroyed.
eventually, "wellness" is achieved - hey, always a Hollywood Ending in America !
...just ask Tommy-G ...he's read the script (^_^)
-Steve |
