Juggling Dynamite

Funny because its painfully true. Jon Stewart examines the media circus and money worship at The World Economic Forum in Davos this week. Here is a direct video link.

Rick Santelli explains the dangerous contagion created by global markets teetering at record price levels on record leverage and margin debt. In these conditions, a dollar of selling pressure in one market can force 5, 10, 20, 50 dollars of selling in other asset markets half way around the world. When correlations go to one under stress, traditional notions of portfolio diversification prove ineffective in protecting capital. Here is a direct video link.

Danielle was a guest today on Talk Digital Network with Jim Goddard talking about recent trends in the world economy and markets. You can listen to audio clip of the segment here.