Our Perspective Rosenberg On The Visible Hand Of Central Planning (ZH)
| Rosenberg On The Visible Hand Of Central Planning (ZH) |
 |
 |
 |
| Written by Steve Meyers |
| Wednesday, 01 September 2010 14:09 |
|
So you thought communist states go down without a fight? Wrong: here is Rosenberg who explains why both China and the US are now actively involved in the business of propping up anything and everything. And totally off topic, Rosie confirms that the liquidity trends in the mutual fund industry continue to deteriorate: " As for liquidity ratios, equity funds portfolio manages have theirs at an all-time low of 3.4%, down from 3.8% in June.Tack on the fact that there are really not very many shorts to be covered – since the market peaked in April, short interest is 4.3% of the S&P 500 market cap (in August 2008 it was 6%) and there’s not a whole lot of underlying fund-flow support for the stock market here." In other words, throw in a few more market down days, a few more weeks of redemptions (and at 16 weeks in a row, there is no reason why this should change), and the liquidation theme will promptly be added to the new normal. READ MORE          |
Joomla Templates Sponsored by Best of Joomla!
