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FT: John Authers on Correlation Across Markets

Equity Fund Flows, Market Correlation,  Yen, and Euro

click for video:

Source:
Short View
FT, March 27, 2008
http://www.ft.com/cms/bfba2c48-5588-11dc-b971-0000779fd2ac.html?_i_referralObject=697966559&fromSearch=n

Friday, April 04, 2008 | 03:00 AM | Permalink | Comments (8) | TrackBack (0)
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Comments

Anybody got anything for nausea?

I watched Larry the Chameleon while getting ready for work this AM. He is now hinting that the recession may have started last November, the same time he was crowing about a Goldilock's (FREE) economy.

This is case in point of people smattering out disinformation that makes the market so hard to read. I wish to God that everyone's opinion was next to their rectum. At least that way, we would know immediately what kind of information we are getting. I wouldn't trust this guy as far as I could throw him. Why am I thinking Leisure Suit Larry right now? Who was Slick Willie anyway?

Real smooth.

Posted by: BG | Apr 4, 2008 7:32:31 AM

I clicked away both times I tried CNBC this morning because Kudlow had his mouth open both times. Not soon enough, because I managed to catch him blaming Clinton for the current financial problems. He is a waste of my time.

Posted by: Sue | Apr 4, 2008 7:53:52 AM

Absolutely!! In a few more weeks, all that has gone wrong will have been caused by the party not even in Office.

While we are on it. I don't see how the argument of Glass-Stegal has a leg to stand on? Can the brokerage side of a Commercial Bank go to the Discount Window? I always thought there was a fire-wall between the regulated (~deposits) and unregulated (~brokerage) parts of all Commercial Banks. If this is not the case, then THAT needs to be fixed immediately or we will be bailing-out the CBs next.

The taxpayers have not opted-in to be a party in the financial risks inherent in Investments Banks or the Brokerage operations of Commercial Banks regardless of deregulation or stepping away from Glass-Stegal. I thought everybody knew that. I think that is a perverted argument.

I still think these IBs that threaten the overall health of the financial system should be broken-up. These very same institutions have been pushing for the break-up of any large US Corporation that they could collect a large fee from for the last 30 years. Maybe it is time for the same Institutions to "do" each other for a change.

There is some guy over in Europe saying the same thing about UBS?

Posted by: BG | Apr 4, 2008 8:18:09 AM

Former UBS AG President Luqman Arnold is calling for a breakup of UBS. I think he has got it right.

Check out this article on Bloomberg.com.

Posted by: BG | Apr 4, 2008 8:56:12 AM

I think one of the reasons the unemployment number is not worse is something Bush said during one of his town hall meetings. He pointed to a woman who said she worked 2 or 3 jobs and he said that was "uniquinicly American. If this is true then when a person gets laid off/downsized he/she is not technically unemployed as they have another job they can go to. Back when I was a lad my father had one job as most men and many women had. So when they wre laid off/downsized they were "unemployed"....Perhaps we need not look at the past for unemployed numbers but begin using another metric....

Posted by: grumpyoldvet | Apr 4, 2008 9:55:25 AM

Kudlow and his bull stooges were dead wrong last year with their Goldilocks scenario. And every time Barry Ritholtz, Doug Kass, Joe B., Gary Shilling or John Brown tried to make the counter argument, Larry would rudely interrupt, and his ultimate stooge, Don Luskin would roll his eyes. Fortunately we have Bloomberg to get a balanced view of the economy and the Market. I wish CNBC would hire the above to participate in a weekly courteous roundtable to calmly, intelligently and professionally discuss the economy and the Market. Kudlow has become the little boy who cried wolf. He has absolutely no credibility anymore.

Posted by: Stu | Apr 4, 2008 10:42:59 AM

The strong correlation of the markets, based in Yen, is the best kind of indicator of how loose and irresponsible the Japanese central bank and their banking system has been. They have flooded the world with super-cheap Yen at low or even negative interest rates, and that "carry trade" money has taken a lead speculative role in world stock markets.

And we think our Fed is "loose money"? Look at that chart again. Shame on Japan.

Posted by: OldVet | Apr 4, 2008 10:49:30 AM

Hey BR, some cross-asset class correlations might be interesting, partic if over a longer frame.

Posted by: Juan | Apr 4, 2008 6:12:48 PM