Perhaps in the Lockean vein . . .

The return of the deadly 403 block forces the post here in response to saldeck.


This week's performance of NYSE traders is primitive; whether that falls within the Lockean paradigm or not we'll set aside for the moment. . . but, there is a suggestion of going back in time and changing motivation.

Many economist in the past have remarked on the Wall Street Culture which in earlier days - when traders were more conscientious about their social role - would restrain themselves - at least on occasion - and consider their responsibilities toward the world and their friends and family.

This is no longer a factor in the "grasping hand - devil take the hindmost" current greed oriented credo.

Players are making it obvious: more precisely, the picture of arrogant, self-regulated greed presented to the public, and even more specifically, to the non-pros who dare enter the inner sanctum of market activivty in search of advanture or in some part preparation for a dismal future built on today's enticing traps. More than one informed (and sensitive to public opinion) Economist has declared that it is a hopeless quest to detemrine what the market will do on any given day. Galbraith, the elder, declared openly that he had given up trying to make sense of the market's activity. This from a man with extraordinary perspicacity in his chosen field - one of the elite economists.

Markets have become no more than a speculative game with little relation to business or investment. Once the IPO is out and the minor fraction is doled out to the issuing enterprise and the remaining major portion goes to brokers rewarding themselves for the cleverness in serving their favored clients with the offering, equities have no further constructive use except, if they go up, the executives at the helm of the corporation can bargain for higher bonuses and exhorbitant salaries, no matter how short-lived the rise. Beyond that, the market appeals to the gambling instincts of participants in the game of acquisition and disposition in a timely manner - which ends up in the measurement in dollars to see who gained and who lost today. Even more restricted, given current market activity, the performance of the past hour or past five minutes may be all that matters. It is almost no longer a matter of disposition determined by outlook extended as far as next week or even this weekend. When the market upens 200 or 300 down - or up for that matter - and an hour or two later is at the other end of the scale, this has nothing to do with productivity or sales for the business attched to the "equities" involved.

This week makes a mockery of any belief in free mrkets. The wild, abrupt changes in the patterns of sales on a daily basis strains credulity if one is in search of integrity and/or reason other than the gambling atmosphere which characterizes today's markets. In this modern interconnected world, conditions on the other side of the globe are as essential to fair analysis of prospects as are the conditions facing the competition or suppliers of any enterprise no metter where they're located. And conditions do not change that rapidly that in one part of a morning or afternoon the swingin market value can cover 300 points or more and go the opposite directinwiththe same pattern thefollowign day. We know that those conditions cannot recover or worsen in a day with the flip of a policy statement. Tomorrow the situation will be as desperate or as rosy as it was yesterday.

What we have is activity based on false valuation, rumor and innuendo - all planned for the obvious purpose. Today, we have a consistently flagging international business environment, which was manipulated to create the impression of substance and sleepinggiant preparign to spring into action at any given instant. Tha tis nto to be that much must be apparent to all, but they choose to ignore mention of it in the hope that weaknesses can be reset and reused tomorrow, everything forgotten or overlooked and the game in the markets would carry on divorced from the true swiss cheese business abd government underpinnings.

If John Locke were here today, he'd deny that there was any relation in today's ethics to eras past when expectations of integrity and reputation were more important for social standing than today's questionable standards, except in certain small circles. One false move or open lie and the reputation was cause for ex-communication or ostracism. Today, the bigger the tale and the more obvious the lie, the more in step with social values the braggart is viewed.

And the bellow of the braggart behind the wild fluctuations is inteded to ease his trading on the vulnerability of the uninitiated while distracting attention from his primary mission in life. It's all built on misleading and sudden surprises, builds nothing, and provides no foundation for any future value. It's today, it's this hour, this minute, this trade. To squeeze JM Keynes's observation into today's time frame, It's not death awaiting us in the long term, it's disgrace or a feeling of uselessness awaiting us if we can't bilk someone with this deal.

It's not only in the stock markets that this attitude prevails, it's rampant in all of society today - though at the moment market behavior may be the most visible and most easily charted for public view.

This attitude has become the "right way to behave" and "they" don't fail to put it to work.

About 1 PM 1-15-16 the NYSE. . .

DJIA down abot 2.78%, NASDAQ down 3.5%, S&P 500 down 2.74% and Russelll 2000 down 4.04%.

Is that a correction yet? . . . And how far will the correction proceed?

Our former host

Where I first met you has multiple headlines encouraging 401k holders "not to panic" and another one about not getting depressed about the market drop.
Not much mentioned about macro economic trends...with the exception of oil.

Yes it seems to be back

The dreaded error code.
So what's next? Will more central banks try buying stocks? Or does everybody receive a check from the government? Something else?


A few days ago, z-h reported that the Dallas Fed had suggested that banks that have distressed loans to energy companies suspend mark to market accounting.
Today, the Dallas Fed allegedly denied they had suggested that.
Either way, it was probably a poor decision on the fed's part to acknowledge they are reading z-h.

Marked to Market and Goldman Sachs

The Goldman Sachs IPO appeared literally out-of-nowhere almost coinciding exactly with the slipped-into-another-act Gramm Leach Bliley Act and the subsequent mysterious calling of every mortgage credit warehouse facility... it was Marked-to-Market credit facilitation that ultimately triggered the 2001 and then 2008 market collapses. Flat-out, boobs on Wall Street were willing to forego a closing table kill-out and human hands doing the quality assurance and fraud control, to get that shidt into the securities. It was supposed to outrun those pesky things... you know, actual ability to pay, actual ability to perform, cross-checked facts, balanced figures. Anyone watching could tell us that Big Oil was pulling funds nearly-Fed-Direct through it's member banks. AND NOW America is massively in debt without collateral. That said, you, me and everyone who is NOT a Big Oil shareholder or bankster or trader or investor or legacy wealth inheritor... is not about to indenture our future for this fiat farce. Collapse is eminent... like... hold the sides of your head BOOM. That said... Wall Street, Big Anything and even our own inept corrupt government are not the Main Event.

Cheese is being moved. People eat cheese or buy food with it. Perhaps the head-in-the-sand was there for a good reason... the head exposed is to be dread. Bu bye sweet algorithm...

Powerball And Fixes

A woman was aired on last night's news... she had invested $100,000- her life savings (and by her photo, that was a stretch, for sure)- into the recent Powerball lottery and... lost. She posted her pathetic story on one of those group-funding sites and managed to dupe stupid people out of $810. A prime lesson about fools, money and a parting.

There are fixes for that supposed "4" problem. When I scrolled through the almost three-feet of corrections made by a purging program, I lamented to see that many of them are controls. We are indeed well-beyond where we should ever be with technology and it will ruin what was-- a good thing. That said, it WILL go down, caused by biting it's own hand, foot, head, gut, etc...

This year-to-date is already record failure for investors. It's been chronicled as that now. That said, we have not yet begun to see failure, even though the corrupt will continue to rally in bull runs that subside, then nosedive to settle lower and lower. One "guess" set the losses at 28%... then the rose-colored glasses get found again. I doubt that as whole nations begin to tilt because they really haven't had genuine economics in years. The ship is sailing through tremendous icebergs now and in uncharted waters. One can only guess that no one steering has their eyes open or are coherent. The commonsense observation... we will need an emergency flight back to Reality in the coming weeks and fully lack knowledge of who what where when and how to do that. You cannot click a button and make a tangible economy. You throw the clickers, twitters, linked-ins, legacies and inheritors into the fire, walk away and use what you can out of everybody else-- who WILL cooperate, given the opportunity.

Catastrophic failure is straight ahead.

wet ammunition

Futures are up this morning on expectations that various central banks will ride to the rescue to prevent further deterioration in stocks and bonds.
While this may provide a short term bounce that might last several months, it will not have the multi year impact that stimulus had provided. That card has been played too many times for too long.
People are starting to realize, as you correctly posted, that a healthy economy depends on real people engaged in meaningful employment with some surplus for buying (conducting trade).
Politicians, worldwide, have squandered any sense of credibility by announcing that their economic policy is a success because of a stock/bond bubble.
2016 will be interesting.
Full disclosure: I spent twenty bucks on powerball. I even bought a five dollar instant which I haven't done in years. The results: zip, nada, nothing!