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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (91162)	6/7/2012 8:21:52 AM
From: dvdw©	Read Replies (2) \| Respond to of 217572

noticed Jim Willy... Outtake "More to the point; High-frequency trading is electronic trading based on mathematical models that make the decisions. Investment firms compete on the basis of speed, capturing gains on a fraction of a penny, and perhaps holding positions for only a few seconds. These are not long-term investors. Content with their daily earnings, they close out all positions at the end of each day. High-frequency trades now account for 70-80% of all equity trades. The result is major heartburn for traditional investors, who are leaving the equity market. " Input, and yet...that 70 to 80 % of trades cannot be validated as doing business within the authentic outstanding. Investors own +70% of the stock issued by public companies....therefore all these trades and the competition at these incredible speeds...are just shim sham. exponential increases in volumes, when in fact volumes available, are in decline. there really are simple solutions to all of this. Restoration of Supply and demand where owners, not proxies, set the market prices. Where shim sham trading must find other ways than subversion. to compete for the right to ownership of shares Valued under traditional rigorous methodologies where the differentials between choices are actually measured within the constraints of supply as relative constants goverened by the prevailing laws of stock issuance in place, when the companies went public.

To: TobagoJack who wrote (91162)	6/7/2012 9:14:35 AM
From: elmatador	Respond to of 217572

Trade finance must be guaranteed. That's the drive to create a "new bank will permit the five large economies to conduct their trade without use of the US dollar." Last time around, 2007-8 financial crisis, trade finance brought world trade to its knees because trade finance dried out from one day to another. Sensing a new 'Lehman moment', during which there will be no letter of credits, the BRICs need a new bank to conduct trade. The financial meltdown we are seeing unfolding, right in front our eyes, is 'finance instruments wealth' and finance-based econimies facing destruction. BRICs are productive countries. They need finance as 5 or 3% of their GDP as a support for their real economies. The Great Unwinding is nothing less the destruction of the hot air, electronic numbers in a page, or the pixelated wealth MQ talks ad nauseam. It is just the destruction of the accountants' illusions. Nothing real wil be destroyed, that the fantasies. That's why klaser say: undeserved wealth that should never have been possessed by someone will taken away from him. For that wealth was artificially created.

To: TobagoJack who wrote (91162)	6/7/2012 9:15:26 AM
From: carranza2	1 Recommendation Read Replies (2) \| Respond to of 217572

That article has led me to consider the possibility that the huge derivative exposure banks face is simply not real. No sane banker would expose his bank to the potential liabilities represented by the nominal values inherent in blown up derivatives. No way. It's just impossible to consider unless, of course, there is some sort of implicit deal to cancel these liabilities in exchange for assistance in manipulating interest rates. If they rise, we are screwed. And, as the writer points out, a great many of these derivatives are related to interest rates. It happened with LTCM, AIG, etc. The next bubble is the one we can't see: the interest rate bubble. Is it possible that the TBTF banks are not allowed to fail because they are instrumental in controlling interest rates? And their reward are the profits inherent in being able to borrow at ZIR? Can the powers that be keep interest rates low for an indefinite period of time? That's what it's going to take to avoid a catastrophe. I wouldn't bet on it. Things eventually revert to the mean. Great article. I disagree with some of the writer's points, but there is a lot to consider there.