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Forum - Wall Street Pit    Stock Due Diligence for All

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From: bearishben (Rep: 17)Date: 05/23/2010 04:57
Forum: Wall Street Pit - Msg #1947251Thread #672993964 (Rec: 0)
Article from April 2009 Portends Greece Default Risk (LINK)

Excepts:

"We are on the cusp of another critical seizure in capital flow. An event that might sink the ship. If one of the major banks, or someone like Greece (who is on the verge of bankruptcy), becomes insolvent we’ll see a domino effect of collapses. There was a digital run on the banks last September which nearly froze the credit system. Liquidity is so tight now another run has even greater probability of breaking the system." (my emphasis)

"Here are some of the mechanical issues. Who else is watching the volume seize up on SPY, DIA, and the Qs? These are fundamental stocks with fundamental volume issues.

A lack of liquidity is one of the underlying reasons volume is leaving equity markets. Liquidity is what gives us an orderly market less prone to price shocks, gap opens, and blatant manipulation. Margin calls, collateral requirements, risk, and uncertainty has taken much of that liquidity away. Funds have blown up, prime brokers don’t exist in the same space anymore, and capital has made an exodus out of equities into derivatives. Money is moving out of the regulated markets into the unregulated markets. It is lack of regulation on insane amounts of leveraged credit that brought us here." (my emphasis)

LINK: http://www.gamingthemarket.com/not-too-big-to-sink.html



when you make a mistake in a trade, do not get mad, get OUT!

the market can stay irrational longer than i can pay rent.

in America, you trade stock market, in Soviet Russia, stock market trades YOU! 

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