Knight Research' Stunning Call: "The Game Is Over"
From Knight Research: "The simple story is this: We believe the structural and cyclical terms of global trade have finally reached their tipping point. This will catalyze a wholesale change in sentiment and a historic repositioning of risk assets. The emerging market global growth story is over...Although such cataclysmic shocks rarely result in rhythmic, straight line fractures, the chain of price adjustments should be relatively clear. Accordingly, we expect a shockingly powerful rally in the dollar, broadbased weakness across the commodity sector, a dramatic widening of emerging market credit spreads, and what could prove to be a stampede of hot fund flows out of the emerging markets. We appreciate both the gravity and the brevity of this note; but then again, the story is simple. "
Yesterday, the need to use the full $600 billion was doubted. This doubt was flashed across the newswires in regular intervals. This perception, in turn, supported the dollar and the smashing of... [[ Thi...
The endless barrage of MOPE has made a large cross-section of the population blind to the economic realities (trends) in place. Critical lending subgroups such as commercial and business loans, and... [[ ...
Trader Dan’s Commentary
Welcome to the new face of trading in the 21rst century… the smaller investing public will be the ones who end up eventually getting a one way ticket to the door as they cannot hope to compete in this sort of arena unless they really and truly deeply understand the particular markets that they are trading.
One thing about these funds – they are generally clueless about the character and nature of the individual markets they trade and their mindless selling and buying creates opportunities for those who know their markets well enough to spot when this computer based selling or buying has pushed prices well beyond fair value and out of sync with the supply/demand picture for that particular commodity.
One has only to respect the hedge fund community for the enormous sums of money at the disposal of their trading machines and the severe price swings that can result from such sums being shoved into or yanked out of markets en masse. As far as respecting them for any intimate knowledge of the things that they trade – that is a joke. Most of them would not be able to tell you the difference between a wheat plant or a corn plant but they are in those markets jerking them all over the place on any given day.
For these people, it is all about chasing movement – nothing else matters.
DJ MARKET TALK: A War On Milliseconds Being Waged At CME Wed Nov 17 12:48:35 2010 EST
1748 GMT [Dow Jones] CME Group (CME) continues to whittle down trade-execution times on its electronic futures and options markets, aiming for transactions to go through in two milliseconds as opposed to the current five in key markets. Energy and metals will be cut over to the faster trade matching engines by the end of 2010, CME CEO Craig Donohue says in investor presentation Wednesday, with interest rates migrating in the first half of next year. There are one thousand milliseconds in one second, and 86,400,000 milliseconds pass by each day. (jacob.bunge@dowjones.com)
Contact us in New York. Darlene Ross, 212 416-2166;
darlene.ross@dowjones.com
Jim Sinclair’s Commentary
This is legalized fabrication. Balance sheets should reveal the financial condition of an entity on a given date.
The assumption that banks never sell is a foundation for a decision set in shifting sand that skirts the reason for a yearly balance sheet.
CIGA Eric observes:
"When governments and banking intertwine, as they have slowly done since the adoption of the US constitution, the consequences of greed-driven mistakes are often postponed through bailouts of various types. This action encourages even more hubris and sense of invincibility until the two are forcibly separated by the brute strength of market forces. Thomas Jefferson, a student of Adam Smith and practical economist, understood the dangers entangling banking and government. The words chosen in the U.S. Constitution and his correspondence suggest it."
Sheila Bair, FDIC Chair, today:
Fair Value Accounting
"Another ongoing regulatory process is FASB’s proposal to substantially revise the accounting standards for financial instruments. Under the proposed rule, banks would be required to measure substantially all of their financial instruments at fair value on the balance sheet.
While we understand that the objective of the rule is to make financial statements more transparent, we believe that its effect could be to undermine financial stability by making bank performance more procyclical. In short, we do not believe that a bank – whose business strategy is to hold loans and deposit liabilities for the long term – should be required to measure them at fair value on the balance sheet."
More…
By: Gary North
Welcome to the new face of trading in the 21rst century… the smaller investing public will be the ones who end up eventually getting a one way ticket to the door as they cannot hope to compete in this sort of arena unless they really and truly deeply understand the particular markets that they are trading.
One thing about these funds – they are generally clueless about the character and nature of the individual markets they trade and their mindless selling and buying creates opportunities for those who know their markets well enough to spot when this computer based selling or buying has pushed prices well beyond fair value and out of sync with the supply/demand picture for that particular commodity.
One has only to respect the hedge fund community for the enormous sums of money at the disposal of their trading machines and the severe price swings that can result from such sums being shoved into or yanked out of markets en masse. As far as respecting them for any intimate knowledge of the things that they trade – that is a joke. Most of them would not be able to tell you the difference between a wheat plant or a corn plant but they are in those markets jerking them all over the place on any given day.
For these people, it is all about chasing movement – nothing else matters.
DJ MARKET TALK: A War On Milliseconds Being Waged At CME Wed Nov 17 12:48:35 2010 EST
1748 GMT [Dow Jones] CME Group (CME) continues to whittle down trade-execution times on its electronic futures and options markets, aiming for transactions to go through in two milliseconds as opposed to the current five in key markets. Energy and metals will be cut over to the faster trade matching engines by the end of 2010, CME CEO Craig Donohue says in investor presentation Wednesday, with interest rates migrating in the first half of next year. There are one thousand milliseconds in one second, and 86,400,000 milliseconds pass by each day. (jacob.bunge@dowjones.com)
Contact us in New York. Darlene Ross, 212 416-2166;
darlene.ross@dowjones.com
Jim Sinclair’s Commentary
This is legalized fabrication. Balance sheets should reveal the financial condition of an entity on a given date.
The assumption that banks never sell is a foundation for a decision set in shifting sand that skirts the reason for a yearly balance sheet.
CIGA Eric observes:
"When governments and banking intertwine, as they have slowly done since the adoption of the US constitution, the consequences of greed-driven mistakes are often postponed through bailouts of various types. This action encourages even more hubris and sense of invincibility until the two are forcibly separated by the brute strength of market forces. Thomas Jefferson, a student of Adam Smith and practical economist, understood the dangers entangling banking and government. The words chosen in the U.S. Constitution and his correspondence suggest it."
Sheila Bair, FDIC Chair, today:
Fair Value Accounting
"Another ongoing regulatory process is FASB’s proposal to substantially revise the accounting standards for financial instruments. Under the proposed rule, banks would be required to measure substantially all of their financial instruments at fair value on the balance sheet.
While we understand that the objective of the rule is to make financial statements more transparent, we believe that its effect could be to undermine financial stability by making bank performance more procyclical. In short, we do not believe that a bank – whose business strategy is to hold loans and deposit liabilities for the long term – should be required to measure them at fair value on the balance sheet."
More…
Is A 6.5% VAT Coming?
China said to consider gradual rise in gold reserves
Big Trouble for Ben Bernank?
By: Gary North
By: Dr. Ron Paul, U.S. Congressman
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