Comments on: What’s behind the spooked stock market? http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/ Sat, 03 Jan 2015 16:42:55 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: mersin escort http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/#comment-2410 Sun, 09 Nov 2014 20:49:47 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=388#comment-2410 This is getting a bit more subjective, but I much prefer the Zune Marketplace. The interface is colorful, has more flair, and some cool features like ‘Mixview’ that let you quickly see related albums, songs, or other users related to what you’re listening to. Clicking on one of those will center on that item, and another set of “neighbors” will come into view, allowing you to navigate around exploring by similar artists, songs, or users. Speaking of users, the Zune “Social” is also great fun, letting you find others with shared tastes and becoming friends with them. You then can listen to a playlist created based on an amalgamation of what all your friends are listening to, which is also enjoyable. Those concerned with privacy will be relieved to know you can prevent the public from seeing your personal listening habits if you so choose.

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By: GeoWorries http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/#comment-1032 Mon, 15 Jul 2013 11:20:01 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=388#comment-1032 Sorry, but Reuter’s had stocks rated above neutral forever. Most were even outperform when everything was taking a **it!! Very hard to use as a source in the past. Prove me wrong?

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By: rossryan http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/#comment-986 Mon, 03 Jun 2013 01:40:35 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=388#comment-986 I’m going to go out on a limb here, and say that while he might be correct (who knows?), there is another possibility. Much like Microsoft’s Marketing branch, whose glowing estimates of Windows 8 probably came purely from internal statistics (much to the chagrin of MS), so to are these marvelous proclamations of the ‘market clearly wants this or that.’ In other words, they really have no clue what the market wants, but are hoping that the usual rituals and waving of the hands will fool people long enough for the market to recover, and make them look good (“See? You just needed to wave the palm branch like *this*”). The market appears to know what it does and does not want, and it does not appear to like what it’s getting at all.

Let’s take a closer look at things, shall we? The market, in its current state, is a bit distanced from its ideal form…every government on the planet has its hooks placed into its sides, and they’re all jockeying for a better position. But it’s not just them…it’s also the various corporate types who rent hooks from host governments to maneuver the market here and there. In the US, in recent times, you have out of control student loans, mortgages, toxic securities, bank bailouts, corporate bailouts, etc. that are, at best, perversions of the ideal market form. You have people’s lives and futures being destroyed…and the sad part is, the ones getting hit are the people on the sidelines. It’s not the idiots who start these financial wars who are getting hit, it’s the poor people who lack the funds to even be involved in these wars.

And the worst part? Debt is multiplying, not wealth; debt with no ability to repay, and no representation in higher places to simply say “This cannot stand.”

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By: Pat_Rich http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/#comment-981 Sun, 02 Jun 2013 04:00:21 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=388#comment-981 There is no longer a stock market in the classic sense. The Fed has killed it. Professional investors control the “stock markets” and invest through automated accounts that can react in literal micro-seconds to a set of conditions they have been programmed to recognize. They all know there is a Fed-induced stock bubble, which means they all know a crash is pending. They don’t know when, but there will be allowances for this in the algorithms; and some bizarre outcomes can result. Trying to relate market behavior to anything other than Fed behavior (or anticipated behavior) is sheer folly. All the pundits who continue to try to relate market behavior to other externalities should be out of a job.

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By: brotherkenny4 http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/#comment-974 Fri, 31 May 2013 20:56:25 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=388#comment-974 No one see the value, only the profit takers waiting for enough twits to stick their life savings in, before there is a “correction”. Get the moron CEOs and creepy board members to put money into real things. Look, you got the money of the simpletons who bought the brainwash. The people left with cash don’t believe the crap you speak.

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By: keebo http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/#comment-973 Fri, 31 May 2013 15:12:58 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=388#comment-973 The markets are spooked because the use of misdirection by bull market advocates to the effect that liquidity from central banks will float prices regardless of fundamentals is just plain stupid.

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By: EconCassandra http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/#comment-972 Fri, 31 May 2013 13:29:20 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=388#comment-972 Mr. Kaletsky, you state “Even in Europe, the outlook appears to be improving as policy shifts away from austerity and toward growth.” REALITY CHECK!

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Eurozone unemployment hits new high with quarter of under-25s jobless

Overall eurozone unemployment rose to 12.2% in April, with young jobless rate up slightly at 24.4% from 24.3% in March

Katie Allen
guardian.co.uk, Friday 31 May 2013 07.03 EDT
Jump to comments (42)

Eurozone unemployment has hit a fresh high with young people the hardest hit as now almost one in four under-25s are out of work in the crisis-stricken currency bloc.

Eurozone unemployment rose to 12.2% for April, an all-time high, according to Eurostat, the statistics office of the EU.

At 24.4%, youth unemployment was double the wider jobless rate and up from 24.3% in March. The problem was most extreme in Greece where almost two out of every three under-25s are unemployed. The rate was 62.5% in February, the most recently available data.

The numbers come just days after eurozone leaders announced plans to get more young people into work as they face warnings about the risks of civil unrest and long-term costs to their economies.

Economists forecast that joblessness will get worse before it gets better in the eurozone.

“An end to the eurozone labour market downturn is not yet in sight. Even if the eurozone economy exits from recession later this year, the labour market is likely to remain in recession until next year,” said Martin van Vliet, at ING Financial Markets.

In the wider EU area of 27 countries, unemployment stood at 11%, as the rate increased in all but nine countries compared with a year earlier.

The biggest rises in joblessness on a year ago were in Greece, Cyprus, Spain and Portugal.

But economists noted that the increase in unemployment was fairly broad-based with rises in so-called core countries as well, including Belgium and the Netherlands, while French unemployment held at 11%.

“Eurozone unemployment has now risen for 24 successive months and by a total of 3.853 million since starting to trend up in May 2011,” said Howard Archer at IHS Global Insight.

He added: “About the only positive spin that could be put on the eurozone unemployment data is that the rise has shown some signs of slowing overall in recent months. The increase has averaged 82,000 a month over the past three months compared to an overall average monthly increase of 158,000 in 2012.”

Ireland recorded one of the biggest drops in unemployment, down to 13.5% from 14.9% a year ago. That compares with a rate of 7.7% for the UK, where youth unemployment is 20.2%.

The lowest rates for youth unemployment were in Germany at 7.5% and Austria at 8%.

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http://www.guardian.co.uk/business/2013/ may/31/eurozone-unemployment-new-high-qu arter-under-25s

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By: Robertla http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/#comment-971 Fri, 31 May 2013 11:41:23 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=388#comment-971 I just can’t get this image out of my head……..

there is this guy, in a big car, with a leak in his right front tire……..he’s still driving on tire, he hasn’t changed it.

and, he pulls over every 2 miles to pump air into the tire.

he tells the passengers, ‘everything is fine, we’ll get there’.

……and I’m wondering if it’s gonna go flat on the freeway

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By: BidnisMan http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/#comment-970 Fri, 31 May 2013 07:57:39 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=388#comment-970 Everyone knows the stock market is in a bubble. Their issue is there are no alternative passive investments. This is why everyone jumps at their own shadow.

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By: EconCassandra http://blogs.reuters.com/anatole-kaletsky/2013/05/30/whats-behind-the-spooked-stock-market/#comment-968 Thu, 30 May 2013 21:06:41 +0000 http://blogs.reuters.com/anatole-kaletsky/?p=388#comment-968 So, your “remarkably simple” solution is to keep the “Wealthy Welfare” going forever.

As long as these people are playing with the “house money”, the markets will continue to rise. However, when their “credit card binge” is cut off — or even threatened to be cut off — they panic.

THAT is what is really going on. Yes, it IS very simple, but not at all like your bullshit story to keep readers mollified, lest someone begin to understand what is happening.

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Bubbles Inflating Faster Than GDP
May 14, 2013 posted by Guest Blogger

By Michael Pento

Three reasons why an economy soaked in debt grows only bubbles.

Global central banks have clearly demonstrated the ability to re-inflate stock and real estate bubbles. Global stock markets are roaring ahead of their economies and real estate prices are quickly rebounding from their recent collapse. However, rock-bottom interest rates and massive money printing have yet to show an aptitude for creating sustainable GDP growth.

There has been a lot of talk about a rebound in the equity and real estate markets helped along by the Fed’s free money. That much is for sure the truth; but the evidence of a viable and sustainable recovery built on free-market forces just isn’t there.

For example, the percentage of consumers who own their own home continued to fall during the first quarter of 2013, dropping to a national level that hasn’t been seen since the fall of 1995. The Census Bureau reported that the nation’s homeownership rate slipped to 65% in Q1 2013, a decline from 65.4% posted in the last quarter of 2012. The rate of home ownership now stands at a 17-year low!

But if the housing market was gaining ground on stable footing then why aren’t first-time home buyers and owner occupiers participating? Instead, it has been hedge funds and speculators that are sopping up all the foreclosures. One has to wonder if these “investors” will hold onto their rental properties if the economy tanks once again and home prices take another steep drop.

In addition, the labor market isn’t rebounding as the Fed had hoped and projected it would. Last month’s NFP (National Financial Partners Corp.) report showed that, despite $85 billion per month of Quantitative Easing, 9,000 goods-producing jobs were lost. And even though you hear the mainstream media talk about resurgence in the manufacturing sector, there were zero manufacturing jobs created in April. What’s even worse is that aggregate hours worked fell by 0.4% in April over March. Therefore, despite the fact that the Labor Department says that 165,000 net new jobs were created, the actual total number of labor hours worked was in decline.

There is a reason why the Fed and other central banks have been unable to achieve a healthy and viable economy even after five years of trying to manufacture one from a printing press. The truth is an economy soaked in debt just doesn’t grow because it is always marked by at least one, if not all three, of the following growth-killing conditions: high interest rates, rampant inflation and onerous tax rates.

Any country with outstanding debt equal to or greater than its GDP is forced into sucking an exorbitant amount of capital out of the private sector due to burdensome rollovers and interest payments on that debt. In addition, rising tax rates act as a disincentive to increase productivity, and whatever money is taken from the private sector is always redeployed in an inefficient, GDP-destroying manner. Rising interest costs also discourage borrowing and lead to capital shortages. And finally, inflation destroys the purchasing power of the middle class by eroding the value of the currency and leaving consumers with an inability to make discretionary purchases.

But central bankers don’t acknowledge this truth and are instead seeking to increase their efforts in pursuit of ever-increasing money supply growth. Of course we are all familiar with the counterfeiting undertakings of the Fed and Bank of Japan. Now Australia’s central bank is joining the crowd of inflation lovers and has cut its key interest rate by 25 basis points on May 7, to a record low of 2.75%.

Investors need to be aware that if a central bank wants to set an inflation target it will be achieved. European Central Bank President Mario Draghi said recently that the ECB was “technically ready” to shift the deposit rate into negative territory, meaning it would start charging lenders for holding their money with the central bank. A bank cannot accept a negative return on its assets. Therefore, if Draghi follows through on his threat, expect money supply growth and inflation to kick into high gear over in the eurozone.

The bottom line is that central bankers are totally inept at creating economic growth but extremely proficient at building asset bubbles. Inflation targets will be met and exceeded as they deploy their new “tools” of charging interest on excess reserves and buying up the stock market. They are in the process of rebuilding the equity and housing bubbles and have already created a massive bubble in the sovereign debt of Europe, America and Japan. Once this bubble breaks (like every other bubble has done in the past) expect economic chaos in unprecedented fashion.

Mr. Michael Pento is the President of Pento Portfolio Strategies and serves as Senior Market Analyst for Baltimore-based research firm Agora Financial.

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http://www.prudentbear.com/2013/05/bubbl es-inflating-faster-than-gdp.html#.Uae-3 5ymhVI

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