Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (56680)	3/23/2006 5:54:10 PM
From: Perspective	Read Replies (1) \| Respond to of 110194

There are a few familiar names here that look like they are saying something, but even here it's tough to shake the notion that it's just a minor correction in the longer-term picture. finance.yahoo.com BC

To: russwinter who wrote (56680)	3/23/2006 10:42:00 PM
From: basho	Read Replies (3) \| Respond to of 110194

Russ, another big factor supporting shares is the ongoing net retirement of corporate equities. Net issues last year (taken from the latest Z1) were minus $161.1 billion, the largest net retirement ever. Excluding financial corporates ($67.4 net issues) and US buying of foreign shares ($137.5 billion), we're left with the astounding figure for non-financial corporates of -$366 billion. The highest previous figure was -$215.5 billion in 1998. With net cash inflows into stock mutual funds and into ETFs as well as net foreign buying, it's like a perpetual short squeeze. As it was in the late 1990s. Much of this bizarre behaviour can no doubt be sheeted home to the pervasive influence of insider option holdings on management decision making. As of course can the sharp decline in dividend payments as a % of profits. The eventual washup of all this stupidity and cupidity will likely be a corporate scandal of unprecedented scope. As for what brings it all to a grinding halt, I only wish I knew.