Wednesday, August 1, 2012

Investing Legend Quits the Markets as it Continues to Destroy Itself

Nasty day today!

Clearly, the powers-that-be are losing it.  Legends are leaving not just electing to stand on the sidelines.

How soon will 'they' let gold run?  Are they ready yet?  It looks to me that we do not have long to wait.

Funny money is getting a 'black-humor' quality while gold remains cheap in the face of growing cracks in the monetary systems machines.


First article:

Investing Legend Louis Bacon Has Had Enough Of Algos And Central Planners, Calls It Quits

Markets are toast as Louis Bacon plans to give back 25% of his fund to investors as "liqudity and opportunities have become more constrained." As Bloomberg notes, Bacon is struggling to make money in his typically macroeconomic trend exploiting fund as "the risk on / risk off environment appears to be an abiding presence that has keep engagement low." Macro funds lost an average of 1.3 percent in the first six months of the year. Bacon, pointed out that "Markets are increasingly distorted by central banks’ attempts to squeeze drops of growth from an over-indebted private sector across much of the developed world." The U.S. markets are hindered by "a caustic political environment and an anti-business administration," he said.

U.S. banks have retreated from making markets in many securities because of the Dodd-Frank legislation, which limits them from trading for their own accounts. Bacon added that 'in some Kafkaesque absurdity,' the rule is "named after the two high protectors from regulatory oversight of perhaps the most egregious of U.S. financial miscreants, Fannie Mae and Freddie Mac."

Bacon pulls no punches as he goes after inept regulators in Europe and the US, and describes the state of affairs as "Disaster Economics, where assets are valued based on their ability to withstand a lurking disaster as opposed to...

Read full article in Zerohedge here. 

Second article:

Algorithm — The Madness in the Machine

 With this kind of brainlessness allowed in the markets it's no surprize that so many are out of the markets where the machines play!

Broken Market Chronicles: Algos Gone Autosell Wild - Video Explanation Of What Happened

Still scratching your head over what happened this morning (this would be everyone at the SEC but not their porn webstream vendors - even they by now realize just how broken the market is)? Don't be - courtesy of Dennis Dick and Premarket Info, here is a 20 minute video explanation parsing the tape and showing precisely what happened that impacted nearly 150 stocks.

Read more here

No comments:

Post a Comment


The Real Goldbggr