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Chaos in the financial markets

The P³:

What is clear is that no one is in charge, and those that think they are appear to be completely clueless, but power mad. Apart from that, all is just fine in the world this morning.

Hmm. So, the chaos that’s happening. Sure, I could be a little in advance of what might happen etc but:

It’s a market meltdown I tell ya…….

12 thoughts on “Chaos in the financial markets”

  1. “What is clear is that I’m not in charge, and those that think I should be appear to be completely clueless, but power mad. Apart from that, all is just fine in the world this morning.”

    Sorted.

  2. I did like Ducky’s change!!

    I have read the post and have to admit even by his standards it’s verging on the deranged. He’s often compared with the ‘conspiracy theorist’ David Icke. I’ve never seen anything that incoherent from Icke. Just seems to be blathering on about ‘extreme right wingers’ and ‘neoliberals’ – just utter incoherence

  3. Innocent question, but how can anyone be “in charge” of a market? A market is just the consensus of its participants.

  4. Dennis, Satan's Editor-In-Chief

    What is clear is that no one is in charge, and those that think they are appear to be completely clueless, but power mad.

    A sentence that will, no doubt, provoke envy from the Master herself, Amanduh Marcotte.

  5. @bloke in spain, Murphy thinks that somewhere there is a Fat Controller dictating share prices, currency movements, interest rates etc. And he wants that job!

  6. It’s getting interesting. Spreads on UK corporate debt are widening as pension schemes offer, but no-one will bid. We re down liquidity to bid on corporate debt, as are many firms in our situation, so are being careful. There may be no bottom to the market once momentum builds. We’d normally step in but the pipeline of funding to support us buying debt is not as big as usual for reasons I won’t go into. Next year looks like a gold rush, but we need the cash today and we don’t have it as we’ve had to post collateral.

    This is a consequence of zero interest rates and the appalling returns on capital unless one wanted to take huge risks. They didn’t risks with credit as the BoE and Government hoped but instead with leveraged and liquidity. Asset bubbles are nasty when they pop.

  7. That’s all very well, AA, but all I want is some plausible reason to buy Index-Linked Gilts tomorrow rather than next week or next month, or vice versa.

  8. Bloke: It goes back to something I keep saying. Every time you see a sentence with “economy” in it, try replacing it with “weather” and see if it still makes sense.
    Elect people to run the weather. Madness.
    Protect people against undesirable vagaries of the weather. Perfectly fine.

  9. Can consensus be manipulated like with climate science?

    《A market is just the consensus of its participants.》

    《Protect people against undesirable vagaries of the weather. Perfectly fine.》

    Can traders in chatrooms engineer short and gamma squeezes that momentum traders pile into, independent of any real factors such as supply and demand of anything but cash-settled contracts?

  10. @?

    If momentum traders are stupid enough to pile their own money into stuff that’s obviously engineered, more fool them. If clients are giving their money to momentum traders to pile into stuff that’s obviously engineered and paying nasally for the privilege, double more fool them. Same goes for algos. But note, this is all their own money, if you don’t like it — and I certainly wouldn’t blame you if you don’t: I stay away from that stuff — don’t play.

    But all this stuff is really one group of people betting against another group of people and while some might be ahead for a while, others will be ahead at a different while. If you’re actually investing in the stock market to hold securities over the long term (years) rather than short-term trading then this all evens itself out over time and is just noise you can ignore.

  11. Bis,

    Maybe he thinks Léon Walras is in charge? Though as he famously stopped attending his economics lectures he probably has never heard of him or his “auctioneer”.

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