Of Plain Fools And Wall Street Fools
“There is a time for all things, but I didn’t know it. And that is precisely what beats so many men in Wall Street who are very far from being in the main sucker class. There is the plain fool, who does the wrong thing at all times everywhere, but there is the Wall Street fool, who thinks he must trade all the time. Not many can always have adequate reasons for buying and selling stocks daily – or sufficient knowledge to make his play an intelligent play.” – Jessie Livermore
It was the sadly departed Loews Chairman, Larry Tisch, who told me early on in my career, “forget what they tell you; just look at the numbers.” I then point to what the Federal Reserve Bank is doing. As of July 31, 2013 they have parked $1,157 billion in foreign banks as compared with $1,112 billion in U.S. banks. To me this is a telling sign. The European banks are in trouble and the Fed is propping them up. One of the consequences of tapering, when it comes, may well be less available cash for this task and then the cracks in the European banks may well blow into gaping holes.
“The game does not change and neither does human nature.” -Jessie Livermore, Reminiscences
David Cameron would like people to believe the markets lend in the same way as retail banks lend to you and I.
Once the cry was, “No taxation without representation”.
Today the cry must be, “No debt without consultation.”
Diaspora Armenians join “We will not Pay 150 Drams” initiative
“The campaign has been joined by Armenians from Egypt, France, Scotland, Spain, Denmark, Poland and even Brazil.
Public transport fares in Armenia’s capital rose by 1.5-2 times starting from July 20. The bus fare made AMD 100 instead of 50, while minibus fare increased from AMD 100 to 150.”
Bridgewater’s Ray Dalio Warns Eurocrisis Is Not Over
Five potential issues facing Europe currently which could lead to a negative market event.
1) Financial institution stress tests could raise worries about specific banks (see chart below)
2) Plans for dealing with problematic banks could lead to Cyprus type situation
3) Portugal’s debts problem signals worries for other countries as well
4) France’s continuing debt build up could cause serious problems
5) International attention to all these problems could exacerbate the issues.
“We will not pay for the bankers’ crisis”
Nearly two thirds of Icelanders say ‘No!’ to Icesave deal