Daily Reading on the Financial Markets: 5/22/12
From Washington’s Blog, it’s not news to most visitors here that the U.S. government is a propaganda machine in many respects, but that cynical observation is about to become legitimized as law.
John Hussman foresees market losses on the order of 25-35% in the next 12-16 months.
At Humble Student Markets, Cam Hui has seen enough commodity weakness to finally capitulate and say it’s time to sell on strength.
From Bloomberg, Marc Faber worries about an ’87-type crash, and says collapsing commodity prices are a warning that China may be a bigger danger than Europe.
Like Faber, Zvi Bar at Seeking Alpha sees “eery” similarities between this year’s market behavior and 1987.
From Reuters, China has had access to buy Treasuries directly from the U.S. Treasury since 2011 – the first foreign government to be ever be able to do so.