Marc Faber, publisher of the Gloom, Boom & Doom Report, says near-term treasury bonds, gold and equity markets are very oversold and they can rebound for the next 10 days or even the next month before the next leg down.Here is a direct link.
The most highly levered, thinly participated global financial markets since 2007 can ill absorb a cash squeeze in the world’s 2nd largest economy. Chinese stocks were down a further 5.3% last night and the Shanghai Composite is now below 2000 again for the first time since 2008. Bloomberg Economics Editor Michael McKee examines the impact of China’s move to limit liquidity in their financial system as their economic growth slows. Here is a direct video link.
Financial markets today have a plethora of fundamental problems and instabilities magnified by intentionally opaque disclosure and liquidity juiced, over-valuations. And on a technical note, HFT has turned fund flows into a freak show of farce, fraud and fantasy. (“But other than that Mrs. Lincoln…how did you enjoy the play?)”
Bart Chilton, a commissioner at the U.S. Commodity Futures Trading Commission, talks about wash trades, in which a party buys a contract from itself, and CME Group Inc.’s plan to block these transactions.Here is a direct link.
