Home > Daily Reading on the Financial Markets, Financial Ponzi, investing, Stock Market > Daily Reading for the Financial Markets: 8/28/11

Daily Reading for the Financial Markets: 8/28/11

Fantastic charts illustrating market cap as related to GDP, from Barry Ritholtz.

Updated technical outlook from Charles Hugh Smith, Of Two Minds.

Jeff Snider on the policy box Ben Bernanke has painted himself into.  From Zero Hedge.

In case you weren’t sure, the New York stock exchanges plans to open as usual on Monday.

Russ Koesterich believes a double-dip recession remains less likely than sluggish growth.  From Seeking Alpha.

Rick Ackerman isn’t siding with Buffett on the future of Bank of America.  From Zero Hedge.

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  1. August 28, 2011 at 12:45 pm

    Interesting blog. I love your blog roll information. I could lose myself for hours checking all of them out. Double dip recession? Depends on the media and of course the inane politicians. The wordspeak needs to be slow down on the way up to the growth cycle. Think positive people!

    • August 28, 2011 at 3:38 pm

      Thanks for visiting! I do a lot of browsing, and will try to keep interesting items posted in the Daily Reading. I enjoyed visiting and reading your blog. I agree that the system is built upon confidence and the velocity of money that confidence brings. To that extent, it’s a simple confidence game; does that make it ponzi-like? Is a system built upon debt that requires infinite growth rapid enough to maintain debt service sustainable on an infinite timeline in your view?

  2. August 28, 2011 at 4:12 pm

    I do believe it is but a Ponzi scheme… keep the man behind the curtain lest we figure out that the whole monetary system is built on “trust”. I believe it is the inability of the dollar to multiply..the fear of failure and the governments inability to stimulate small businesses into expansion. Unfortunately, it is a world wide problem, making it much harder to pull out. Stay tuned for my next couple of posts… they are written, and will be posted later this evening and in the next few days

  3. August 29, 2011 at 10:46 am

    I agree about the necessity for dollar to continue multiplying, but I question (or, more honestly, I doubt) the sustainability of an exponentially increasing debt-based currency unit. I think the growth inevitably slows (whether due to resource constraints, or just goold old fashioned business cycle factors), and the exponentially increasing debt service burden that comes along with the debt-based currency growth, can’t handle a slowdown in growth without mass defaults. As such, I think the system’s premise (infinite expansion) is faulty.

    I very much look forward to reading your next couple of posts.

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