on his supply-demand perspective of what drives stock prices and the heavy
volume of corporate selling combined with mutual fund outflows that we have
been so vociferous about, Charles Biderman of TrimTabs provides color on why, just like in 2010 and 2011,
markets sold off in May. Whether you believe it is explicitly the
angst-inspiring European malaise, Facebook's flop, or
macro deterioration and a pending fiscal cliff - the real driver is more shares chasing less cash as he
puts it and reflexively the news exaggerates it or stalls it. Stock prices are likely to keep dropping,
no matter what, until the Fed announces the next stimulus/easing (as we all
know) but unfortunately this will have no impact on the real economy (though
stocks will pop). Bidermanberates the Fed for its constant insistence that this
time is different and as far as the election 'our policies will bring about sustainable recovery
and jobs' promises we will hear from both candidates, he succinctly
summarizes thus: "What Bullshit!
Where we are now as a world is: it's ok for governments to lie for their own
of his better rants that escalates more and more as
the brief 4 minutes or so goes on...
and ends with a great question:
are bankers, union bosses, and government officials not going to prison for
committing fraud against all of us?"