Reference my writings on "The Illusion of Liquidity" and why the securities markets are not truly liquid (actually very illiquid) as a result of the Federal Reserves implementation of "down market limits" in reaction to the Hunt brothers attempt to corner the silver market and subsequent efforts to implement "market down limits" in stock market downturns. All these do is accerelate the downside moves by fostering an atmosphere of safety when in fact it corners traders into there positions only to awake to lower "lock limit down prices" the next day and guess what.....more panic ensues....hence,,"The Illusion of Liquidity in the Equity markets. I have also described these moves as they relate to something I call "Organized (manipulated) markets" a direct correllary to a common referral to religion as the "Opiate of the Masses" in other words ...the Herd Mentality...just as lemmings....they will follow one another jumping into the seas.....as idiots......like the masses....they pile in when it is going UP....and panic and sell when it is going down....the exact opposite of what they should do....see Warren Buffet..The Oracle of Omaha....The most successful investor in history. Good Luck....Just dont be the lemmings...Also wait until I explain to you why Oil has an INELASTIC demand curve and why as we CONSERVE more the price of oil actually goes UP!!!! hint (the Arabs have Huge investments in US real estate that they have mortgages on) So the less oil we use the higher they have to raise the price to pay there fixed obligations.....stay tuned and I will tell you about 2 middle Eastern companies who are on the verge of defaulting.....
Posted on: Tue, 11 Jun 2013 00:50:01 +0000
Trending Topics
Recently Viewed Topics
© 2015