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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (81122)	9/19/2008 8:35:44 AM
From: Real Man	2 Recommendations Read Replies (5) \| Respond to of 94695

It's the ARBS. Whatever bearish funds you have, derivatives you buy or sell, ARBs are the mechanism that connects them to the underlying asset. In this case, ETFs use futures to go short, then ARBS are on the BUY side of those, and on the SELL side in the cash market, taking a RISK FREE position of long futures/short cash. They can't do the latter now. The integrity of the market has been destroyed. ARBS will go home, and it won't matter how much HANK pumps the futures anymore, the phone boy gone home. CASH sellers from distressed credit markets will crash the spoos. They are not short, they sell because they need cash to pay debts.