Since stressing out over the stress tests the last 10 days many traders are probably ready to de-stress or un-stress. Sometimes this can be accomplished by just typing up random thoughts just to get the creative juices flowing again.
All hail the free market system.
When short sellers were pounding Bank of America and Citigroup stock in February into oblivion and prices were nearing zero the pundits were calling it excessive speculation and blaming the hedge funds. Talk was circulating that the uptick rule should be reinstated. “Short sellers be damned” was the battle cry.
Now that the “earth shattering” Fed bank stress test results have been released, investors have found out that Bank of America and Citigroup are amongst the largest banks short on capital. So the next time you see a stock getting pounded do not always think it is excessive speculation. Maybe somebody knows more than you do.
With so much cheap money floating around the United States, what’s to stop the Europeans and Asians from turning the Greenback into a carry currency?
Now that the global recession seems to be easing, is there anyone watching to make sure U.S. banks do not start lending our money to higher risk emerging markets. Are there any rules in place that state the U.S. taxpayer has the right of first refusal before allowing U.S. banks to move money overseas?
When it was announced this week that Australian and Canadian employers actually hired more workers and U.S. employers let more workers go, did you consider that maybe some U.S. workers left their jobs because they were hired by Canadian and Australian employers?
Is anyone paying attention to what the IMF says? Didn’t it say a few weeks ago that there is about $4.1 trillion in existing toxic debt floating around out there? Did anyone even hear the phrase “toxic assets” mentioned at all during the historical bank stress test period?
Not to change the subject but did Swine Flu wipe out the Somali Pirates? They have mysteriously disappeared from the news.