Friday, May 14, 2010

This Could Be A Bad Sign For The Paper Markets

High yield funds see 3rd highest fund outflow since 1992. Bank of America sugar-coats this by saying: "The disconnect between the two indicates to us that it was mostly hot money shorting the market that were responsible for ETF withdrawals, as opposed to the mainstream long-term HY investor base. Otherwise, the distribution between the two segments should not differ much, just as it usually relates over most other intervals. This, in turn, gives us one more reason to believe that such outflows could be temporary" sourced from

But that's utter garbage. In the 9 years that I was trading junk bonds, when the hot money pulled out junk bond funds, it almost invariably pre-saged a big stock market sell-off. Given the action in gold/silver today, I'm wondering if market sensitive money is starting to move into gold as a flight to safety...GOT GOLD?  (two links worth reading).


  1. A MUST WATCH!!!

  2. This is certainly not a bullish sign. Any wild thoughts for surprise weekend actions?

  3. No but I know for a fact that real estate sales are cratering after the 4/30 tax credit expired. Was chatting w/a good friend who's accountant handles a lot of R/E brokers' taxes. He said that starting 5/1 these guys weren't even getting showing appointments.

    I bet the Fed is going to have announce QE2 soon, using the EU meltdown as the cover excuse.

  4. Doing God's work has its advantages. However, he failed to mention the God he serves is the devil himself.

  5. The black swan continues to spread it's wings, this is from Fairplay magazine website, the SI Ferry tried to use this same law after the Barbieri incident a few years ago...didn't work but then again the City lawyers are dolts:

    "Transocean sees 1851 loophole

    Transocean seeks liability limit

    TRANSOCEAN Holdings is invoking 160-year-old US admiralty laws to limit its exposure to damage claims relating to the Gulf of Mexico oil spill.
    Court documents filed in the federal court in the Southern District of Texas show that Transocean, as owner of the mobile offshore drill ship Deepwater Horizon, will rely on the Limitation of Liability Act of 1851 to limit its damages to $27M. This is the estimated value of Transocean’s interest in the vessel at the time of the blast on 20 April.
    The act was enacted by Congress to give US shipowners a chance to compete with foreign-flagged vessels that had limited liability under European seafaring laws. It also provided shipowners protection at a time when shipping was considered a high-risk venture.
    Despite lawsuits likely to reach into the billions of dollars against Transocean, among others, the company said in its filing that Deepwater Horizon was “seaworthy, tight, staunch, strong, and properly and sufficiently manned and supplied”.
    It also said any personal injury, death or physical damage was not the company’s fault."

    I am Sofa King...tired.

  6. Joe, Blankfein will meet his justice one of these days...

  7. Did a pastrami cook today, will post pictures in a bit.

  8. omigod i almost passed when i looked at the pics - all the blood in head rushed to my empty stomach LOL

  9. HA! Sorry brother. Com eout to Mass and I will cook you a feast!