SSDD – But Worse?

. Further investigation brings you this post from Hussman -  Betting on a Bubble, Bracing for a Fall  This post is sensational. “Not every downturn in the index is important. The ECRI emphasizes that when interpreting economic data, there are three requirements that have to be satisfied to confidently indicate an oncoming recession – the downturn must be profound, pervasive, and persistent. Profound means a deep decline, which we’re clearly observing here.” Further on down you get (referring to another chart), “One reason for highlighting the period of bubble valuations in green is to make a very emphatic point. If you exclude the bubble valuations of 1995-2007 (as depicted in the chart below), the current valuation of the S&P 500 is near the highest level ever observed in history. To expect valuations to expand from here is to rely on the sustained resumption of bubble valuations that have ultimately been devastating to investors.” This post is rich baby.

Calculated Risk has Weekly Initial Unemployment Claims: Eight Months of Moving Sideways as usual CR reports just the facts and lacks any sort of humor or insightful commentary. They did offer this, “The 4-week average of initial weekly claims has been at about the same level since December 2009 (eight months) and the 4-week average of 452,500 is high historically, and suggests a weak labor market.” which is useful. I appreciate the site and what it brings, but there is a reason I used to bring you info from there a lot more than I do now. It is friggin dullsville. My suggestion, add some spice and report it like this New Weekly Claims At 457K On Expectations Of 460K, EUCs Plunge By 1.5 Million In Past Month “Those looking to find a catalyst for today’s market action will probably not find it here. Which likely means ramp time as there will be no volume in the market once again. And good thing Obama extended that job stimulus for the nth time, as EUC claims plunged another 230k in the week ending July 10, a 1.5 million drop in just over a month: on July 10, total EUCs were 3.253 Million, a drop of over 1.3 million since the 4.7 million on June 5. These are all people who no longer used to receive their monthly $1,000 bonus check for not working, taking out tens of billions of dollars in circulation out of the economy.” – now I can sink my teeth into that!

This is simply astounding – Stunner: 12th Sequential Domestic Equity Outflow (And $11 Billion In July Alone) Invalidates Volumeless July Stock Surge “The market is now completely disconnected from fund flows, and the only thing potentially keeping it in the stratosphere in addition to deranged binary concoctions are various “self-fulfilling prophecy” high gamma ETFs, which continue to push stocks away from fair value to the tune of several standard deviations. However, just like on May 6, the rubber band will, sooner or later, snap, and make May 6 seem like a dress rehearsal” Calc Risk – you taking notes here? That is a money shot right there. 
 

That instant refi deal is really gonna screw with the markets I think. Just like all the reported rumors about LBO’s and mergers have been allowed to keep speculative bubbles afloat, I am positive that this is just another speculative (re: fraudulent blatant lie) to motivate the markets without having to spend any cash. Sure, it is OK. What do you think, the SEC is gonna actually prosecute anyone for anything these days (unless of course you are a little person)?

GL out there.