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Category Archives: Market Panics

Passive Investing Destroys “Price Discovery”


PassInvest1

Courtesy Google Images

 

ZERO HEDGE published an article entitled, “Hedge Fund CIO: “Expect Enormous Losses In The Next Correction As There Is No Price Discovery In Index Investing”. According to that article,

The CIO [Chief Investment Officer] of One River Asset Management spoke on the one topic that is first and foremost on the minds of the active investing community: the unprecedented shift from active to passive management, and what it means for not only the industry, but for markets during the next “normal correction.”

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Posted by on April 21, 2017 in Economy, Investment, Market Panics, Uncategorized

 

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Bill Holter Interviewed by Greg Hunter


Greg Hunter             Bill Holter

Greg Hunter . . . . . . . Bill Holter

So far as I know, Bill Holter is not a prophet.  He could be wrong. But he’s no dummy.  In the following interview, he offers fundamental facts that support the theory that the “stuff” will hit the fan before the end of October (and perhaps even before the end of September).  I agree that all of his facts are important and perhaps profound.  I think his timeline is plausible.

However, Holter implies that, once the stuff really hits the fan, the whole credit system will collapse and  cause the food distribution system (which is almost entirely based on credit) to also and utterly collapse within another 48 hours.

All of that is possible but, without any evidence to support my opinion other than a “gut” intuition, I don’t think/feel that the coming collapse will be total and cause the economy to utterly collapse within 48 hours. I’m more inclined to believe that whenever the moment of real collapse begins, the US economy will move downward as if on a kid’s slide or as downward stair-steps that require six months or more to reach the “bottom”.  I believe the collapse will be painful, but not as sudden and catastrophic as the detonation of a bomb.

Other than that, I tend to agree with all of Holter’s arguments.  I wouldn’t bet on whether the trigger moment happens before the end of October (or even before the end of September) but I agree that it could.

So, here’s Bill Holter’s interview and it’s worth your time.

video     00:29:09

 

 

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Daily Hip Shots: Greek Anger; Rushing for Exits; & Inevitable Government Bankruptcies


The Ol' Hipshooter [courtesy Google Images]

The Ol’ Hipshooter
[courtesy Google Images]

Daily Hip Shots are occasional articles that I haven’t considered for long or proofread as much as I’d like, but still contain the germ of an observation, idea or insight that you might find interesting.

 

Greek Anger

CNBC posted an article entitled “It’s treason!  Greek anger at government u-turn”:

 

“European equity markets might be cheering a deal to extend Greece’s aid by four months, but many ordinary Greeks feel their government has backtracked from its grand promises to strike out the bailout.

“Greece is now scrambling to present a list of reform proposals in order to secure the financial lifeline. “

 

The significance of these “reform proposals” is this:  Last Friday’s celebrated agreement to extend the Greek’s loans for another 4 months is not yet final.

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