rumor is something will be done in Europe tomorrow.
One could suggest that Uncle ben was waiting for them to get their act together, and to decide what to do, as is the ECB and other central banks. Sure it will be a Kludge of a plan, but seems like with whatever action Europe announces in the morning we could see that action tomorrow. And that that was what is holding them up.
of couse I'm all about us fighting it out.
Tuesday, October 7, 2008
coordinated action
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5 comments:
Buy on the rumor, sell on the news?
TK is yelling at bernanke. Priceless.
my call is this 80% we have to ride this out till next monday tuesday, and let options expiration do it's magic.
then I guess 20% anything can happen. every move up the hedgies are going to sell into for redemptions until they have to call it quits, and accept that they suck!
did you read the Doug Kass thing about how the Hedgies are shorting the SPX like mad, as a hedge?
This is all just so crazy... Not to "not be afraid", but stocks moving in a 2 day period up and down 20%....Sometimes in 10 minutes.
It's Rough...
Kass may be merely talking his book, since he called a bottom a few weeks ago.
However, his premise makes sense, especially regarding the liquidity of SPX and the need to hedge illiquid longs.
The implication is that the bottom will be sharper, V-shaped, as the shorts need to get covered quickly. Right?
Brian is always talking about the bottom being a "process", but would Kass' theory speak against that?
there has to be an index low. It is a process, it's not like JPM is making new lows. Regionals are still strong.
You have to think that at one point "Being short" will become the new crowded trade.
and you have to think that the "index low" is coming.
with this much damage, you have to wonder if anyone will be able to afford to drive a car again....
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